TNB earn­ings down on im­pair­ment charges, weak ring­git

The Star Malaysia - StarBiz - - News -

PE­TAL­ING JAYA: Te­naga Na­sional Bhd’s (TNB) earn­ings in the sec­ond quar­ter ended June 30 were af­fected by im­pair­ment charges and the weaker ring­git.

The group re­ported a net profit of RM1.24bil that bumped up its hal­fyear earn­ings to RM3.36bil. On an an­nu­alised ba­sis, the re­sults were lower than the con­sen­sus es­ti­mate of RM7.2bil for the full year.

TNB has de­clared an in­terim div­i­dend of 30.27 sen a share, to be paid at a date to be an­nounced later.

Op­er­at­ing profit in the sec­ond quar­ter was RM2.01bil com­pared with the RM2.69bil made in the first quar­ter, TNB said in a fil­ing with Bursa Malaysia.

The de­cline was mainly due to “recog­ni­tion of im­pair­ment on the value of the group’s in­vest­ment in an as­so­ciate,” it said.

Profit at­trib­ut­able to own­ers of the com­pany fell 41% to RM1.24bil on the weaker ring­git ex­change rates against the US dol­lar and yen that re­sulted in a higher cost of ser­vic­ing its for­eign cur­rency-de­nomi- nated bor­row­ings.

TNB said its to­tal debt as at June 30 stood at RM42.5bil. Of the amount, RM2.5bil is de­nom­i­nated in yen and RM5.9bil in US dol­lars. Lo­cal bor­row­ings stand at RM33.4bil.

Shares in TNB closed two sen lower to RM15.68, giv­ing the stock a mar­ket cap of RM88.91bil.

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