TNB earnings down on impairment charges, weak ringgit
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.