Business

Tuesday October 27, 2009

TNB projects better profit

By JAGDEV SINGH SIDHU


KUALA LUMPUR: Tenaga Nasional Bhd (TNB) is expecting better profit for its current financial year ending Aug 31 (FY10) as the company is projecting higher electricity sales while keeping margins stable.

Coal prices for FY10 are forecast at below last year’s average US$90.20 a tonne but the higher average coal price in FY09 had crimped on the company’s profit.

“This year’s coal price will stabilise,’’ president and chief executive officer Datuk Seri Che Khalib Mohamad Noh told a briefing announcing the company’s results.

TNB made a net profit before forex translation loss of RM408.6mil in its fourth quarter. After factoring a forex translation loss of RM244mil and minority interest, net profit for the quarter was RM133.4mil, on revenue of RM7.46bil.

For FY09, TNB posted a net profit before the forex translation loss of RM2.1bil compared with RM2.54bil in FY08. The lower profit was attributed to the higher cost of coal paid during the year.

Che Khalib said the tariff adjustment TNB received in March provided a mechanism to mitigate the high coal prices up to US$85 a tonne.

After the forex translation loss, TNB’s net profit for FY09 was RM853mil, or 21.18 sen a share, compared with RM2.6bil, or 59.87 sen a share, in FY08.

For the latest year, TNB’s board recommended a final dividend of 10 sen gross less tax and a tax exempt dividend of 2.3 sen a share.

Commenting on its latest financial results, Che Khalib said demand for the year shrank 3.2% but expected 2010 demand to expand by 3%.

Helping the optimism for its current year was the recent trend in electricity consumption which on Aug 12 hit a new peak of 14,245MW.

“Demand has recently gone above 2008 figures,’’ said Che Khalib.

Earnings before interest, tax, depreciation and amortisation margin for FY09 was 25.2% compared with 29.9% in FY08.

The company is expected to consume more coal as gas supplies are being hindered by ongoing maintenance work by Petroliam Nasional Bhd on its gas processing plant.

TNB needs about 1,250 million standard cu ft of gas per day but at times does not get that amount.

“So we must burn more coal and expect that to continue,’’ Che Khalib said.

TNB has secured its coal supply until the end of next year and capped its coal price at a maximum of US$90 until June 2010.

The company has forecast FY10 capital expenditure at RM4bil to RM5bil.

 
TENAGA :  [Stock Watch]  [News]


For latest Bursa Malaysia indices, charts and other information click here

  • E-mail this story
  • Print this story