Highlight Tenaga 3Q net profit up 155% yoy at RM1.71b, aided by forex gains

Highlight Tenaga 3Q net profit up 155% yoy at RM1.71b, aided by forex gains
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Thursday, 18 July 2013 18:02

KUALA LUMPUR (July 18): TENAGA NASIONAL BHD [] more than doubled its third quarter net profit from a year earlier due mainly to foreign exchange (forex) gains, higher power sales and lower fuel costs.

In a statement to the exchange today, Tenaga said net profit jumped 155% to RM1.71 billion in the third quarter ended May 31, 2013 (3QFY13) from RM672.4 million previously.

Revenue rose to RM9.65 billion from RM9.19 billion on higher electricity sales, according to the firm.

"Strengthening of the ringgit against the US dollar and Japanese yen resulted in a translation gain of RM324.7 million as compared to a translation loss of RM533.1 million reported in the corresponding third quarter last year," Tenaga said.

Excluding the forex translation gains of RM324.7 million in 3QFY13, Tenaga's core net profit would have come to RM1.4 billion.

Tenaga’s profit figure surpasses street forecast of RM1.1 billion, according to a note by Credit Suisse today.

For the nine months to May 2013, Tenaga's cumulative net profit rose to RM4.39 billion from RM3.35 billion a year earlier. Revenue climbed to RM27.63 billion from RM26.51 billion.

"The current improved results of the period are mainly due to increase in demand and a more favourable coal price. The weakening of the yen has also contributed to the better performance for the period.

"The board of directors is of the view that the prospects of the group for the year ending August 31, 2013, remains stable," Tenaga said.