TNB’s Q4 net profit leaps on strong ring­git

> Low LNG prices also con­trib­ute to per­for­mance

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Te­naga Na­sional Bhd’s (TNB) net profit more than dou­bled to RM1.76 bil­lion for the fourth quar­ter ended Aug 31, 2016 against RM820.9 mil­lion in the pre­vi­ous cor­re­spond­ing pe­riod, buoyed by the strength­en­ing of the ring­git against US dol­lar and lower av­er­age prices of liq­ue­fied nat­u­ral gas.

Rev­enue, how­ever, was down by 4.3% from RM11.74 bil­lion to RM11.24 bil­lion, on the back of higher amount of over­recov­er­abil­ity of Im­bal­ance Cost PassThrough (ICPT) recog­nised amount­ing to RM856 mil­lion, which was due to lower LNG prices.

The util­ity gi­ant has pro­posed a fi­nal div­i­dend of 22 sen per share.

TNB’s full-year net profit rose 20.4% from RM6.12 bil­lion to RM7.37 bil­lion. Rev­enue came in at RM44.53 bil­lion, 2.9% higher than the RM43.29 bil­lion it made a year ago.

“This year’s per­for­mance was mainly con­trib­uted by pos­i­tive mo­men­tum in Penin­su­lar Malaysia elec­tric­ity de­mand. How­ever, to­wards the end of the year we have seen that the elec­tric­ity con­sump­tion pat­tern have re­verted to its nor­mal trend with the chang­ing weather pat­tern,” said TNB pres­i­dent and CEO Datuk Seri Az­man Mohd in a state­ment.

He ex­pects elec­tric­ity de­mand will con­tinue to in­crease in tan­dem with the coun­try’s eco­nomic growth.

TNB also noted that dur­ing the year, there were six gen­er­a­tion projects car­ried out that con­trib­uted to the higher in­vest­ment in cap­i­tal ex­pen­di­ture of RM11.39 bil­lion, as com­pared with RM10.77 bil­lion in­vested last year.

“Out of the six, the group had suc­cess­fully com­mis­sioned four projects with to­tal ca­pac­ity of 1,892MW. The capex in­vest­ment will en­sure that the na­tion’s en­ergy ca­pac­ity re­quire­ment is met and the over­all sys­tem ef­fi­ciency, se­cu­rity and re­li­a­bil­ity are main­tained,” it added.

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