TNB’s Q4 net profit leaps on strong ringgit

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 over-recoverability of Imbalance Cost Pass-Through (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.