Wednesday, 21 April 2010
A quick look at Tenaga (20.4.2010)
Wright Quality Rating: AAB4
A quick look at Tenaga 20.4.2010
Tenaga 2Q net profit at RM1b
Tags: borrowings | forex gains | Tenaga
Written by Isabelle Francis
Tuesday, 20 April 2010 17:23
KUALA LUMPUR: TENAGA NASIONAL BHD  posted net profit of RM1 billion in its second quarter ended Feb 28, 2010, up 48% from RM674.6 million a year ago, underpinned by higher revenue as electricity demand rose, a more stable generation cost and foreign exchange translation gain of RM144.4 million.
It said on Tuesday, April 20 that revenue was RM7.389 billion, up 7% or RM482.5 million against RM6.906 billion a year ago. Earnings per share were 23.05 sen versus 15.56 sen. It declared dividend of six sen per share.
"The improvement was derived mainly from sales of electricity in Peninsular Malaysia which recorded an increase of 7.5% or RM476.2 million and the unit sold registered a growth of 13.8% compared with corresponding period," it said.
Tenaga said the improved earnings were underpinned by higher revenue from the increase in electricity demand growth and a more stable generation cost as coal prices remained under control during the quarter.
"Stronger Ringgit against Dollar and Yen has contributed to the foreign exchange translation gain of RM144.4 million in the current quarter compared to a loss of RM97.0 million recorded in the corresponding period last financial year," it said.
As at Feb 28, 2010, its borrowings were RM22.38 billion compared with RM22.616 billion as at Aug 31, 2009. Of the borrowings as at Feb 28, 2010, Tenaga said RM5.574 billion of the loans were in yen and RM5.125 billion in US dollar while the rest were in ringgit.
For the first half, it said revenue was RM14.727 billion, up 2.8% from RM14.321 billion in the previous corresponding period. Sales of electricity in Peninsular Malaysia increased 3.3% or RM436.3 million.
"The company recorded an increase in demand of 8.0% growth as compared to the corresponding period last year," it said.
Its first half's earnings were RM1.706 billion, a turnaround from the net loss of RM269.5 million a year ago. The improved earnings were mainly due to a sharp rebound in electricity demand growth while costs remained under control.
During the first half, the stronger ringgit has also contributed to the better results as Tenaga recorded a foreign exchange translation gain of RM99.0 million as compared to a loss of RM1.536 billion in FY2009.
Tenaga said that when compared to the first quarter, its revenue of RM7.39 billion was RM50.8 million higher than the preceding quarter revenue of RM7.338 billion, which was a marginal increase of 0.7%.
The second quarter saw its operating expenses decline by RM13.4 million from RM6.179 billion to RM6.166 billion or 0.2%, mainly due to a more stable generation costs as coal prices remained under control.
The Group recorded foreign exchange translation gain of RM144.4 million compared to a loss of RM45.4 million recorded in the preceding quarter mainly due to the weakening of Japanese Yen against Ringgit during the quarter under review.