TNB's earnings soar 23.6% on forex gain for three months ended Nov 30

PETALING JAYA: Tenaga Nasional Bhd's (TNB) net earnings jumped 23.6% to RM2.15 billion in the three months period ended Nov 30, 2017, from RM1.74 billion in the previous corresponding quarter, mainly due to foreign exchange gain amounting to RM293.9 million.
Revenue for the quarter increased 3.3% from RM11.24 billion to RM11.61 billion, mainly driven by the increase in group's sales of electricity as compared to the last corresponding quarter.
"The higher group profit after tax was mainly due to favourable foreign exchange translation, boosted by the strengthening of the ringgit," its president and CEO Datuk Seri Ir Azman Mohd said in a statement.
He said this indicates positive macroeconomic development in the country, which benefits the group in terms of electricity demand. Electricity demand growth in Peninsular Malaysia for the period was at 1.2%, mainly contributed by the continuing upward trend in the industrial sector since the fourth quarter ended August 2017.
Therefore, the group expects the unit electricity demand growth as well as its 2017 results will remain stable.
Meanwhile, TNB said it has invested substantially in capital expenditure to match the nation's energy capacity requirement. Currently, it said there are three generation projects with almost 3,500 megawatt capacities due to be commissioned within year 2018 to 2020.
These generation projects represent 70.9% of the group's total capex investment of RM3.71 billion during the three months period ended Nov 30, 2017.
These investments had also contributed to strengthening the group balance sheet with total group asset base increasing to RM146.10 billion as at the same period, it added.
TNB's share price closed two sen or 0.13% lower to RM15.84 with 7.16 million shares traded.