TNB’s operating profit stable at RM2.34 bln

KUALA LUMPUR: Tenaga Nasional Bhd’s (TNB) operating profit for the first quarter of financial year (FY) ended Dec 31, 2017 stood at a similar level of RM2.34 billion as compared to the corresponding period last year.

In a statement yesterday, TNB said, the stability in the group’s operating profit would benefit shareholders in the form of sustainable stream of future dividend payout as well as capital gains.

“This short FY comprised four months, which starts from Sept 1, 2017, as the utility giant has changed its results end from Aug 31 to Dec 31.

“Thereafter, the group’s FY shall revert to twelve months ending Dec 31,’” it said.

TNB said during SeptemberDecember last year, its operating expenses rose by 6.3 per cent to RM9.66 billion from RM9.09 billion in the same period a year ago, mainly contributed by higher generation cost from fuel cost escalation.

However, through the effective implementation of imbalanced cost pass through mechanism, TNB remained neutral from any fluctuation in fuel prices, it said.

TNB President/Chief Executive Officer, Datuk Seri Ir Azman Mohd, said the earnings stability was crucial to ensure that the company has the capability to continuously invest in the nation’s infrastructure to ensure system efficiency, security and reliability.

Going forward, he said, the unit electricity demand growth would be stable this year in line with Bank Negara Malaysia’s economic outlook, indicating the economy was on course to register growth that was close to the upper range of the official projection of between 5.2 per cent and 5.7 per cent in 2017. — Bernama