TNB’s net profit jumps 23.6% on forex gains

By NG MIN SHEN / Pic By MUHD AMIN NAHARUL

Tenaga Nasional Bhd’s (TNB) net profit rose to RM2.15 billion for the three months ended Nov 30, 2017, compared to RM1.74 billion recorded in the previous corresponding quarter.

The improved earnings were largely due to foreign-exchange (forex) gains amounting to RM293.9 million recorded in the quarter compared to a forex loss of RM225.4 million posted the year prior, TNB told Bursa Malaysia last Friday.

Revenue for the period under review rose 3.3% to RM11.61 billion from RM11.24 billion a year ago, helped by higher sales of electricity.

The financial year commenced from Sept 1, 2017, to Dec 31, 2017, covering a period of four months.

Thereafter, the financial year of the group will revert to 12 months ending Dec 31.

Operating profit for the three months stood at RM2.34 billion similar to the corresponding period a year ago.

Operating expenses rose 6.3% to RM9.66 billion from RM9.09 billion the year before, mainly attributed to higher generation cost from fuel cost escalation.

However, the group said it remained neutral from any fluctuation in fuel prices due to the implementation of the imbalance cost pass-through (ICPT) mechanism.

“The group’s higher profit after tax was mainly due to favourable forex translation, boosted by the strengthening of the ringgit.

“This indicates positive macroeconomic development in Malaysia, which benefits TNB in terms of electricity demand,” TNB president and CEO Datuk Seri Azman Mohd said in a separate statement.

He added that the stability of the group’s earnings was underpinned by the implementation of the ICPT mechanism under the incentive-based regulation (IBR) framework.

The return for regulated business under the IBR framework, which mainly consists of transmission and distribution businesses, amounted to RM967 million for the three months in focus.