KUALA LUMPUR: TENAGA Nasional Bhd's (TNB) net profit for the second quarter (Q2) ended February 2015 rose 24 per cent to RM2.16 billion from RM1.73 billion a year earlier.
This was attributed to higher electricity sales, lower generation cost due to lower coal price and lower usage of the more expensive liquefied natural gas (LNG) fuel, TNB said in a filing to Bursa Malaysia yesterday.
For the six months, TNB recorded RM4.51 billion net profit, up 29.4 per cent from RM3.48 billion profit a year ago due to rising revenue and a drop in operating expenses.
Revenue for the first half rose 9.2 per cent to RM21.64 billion from RM19.57 billion as a result of improvement in electricity sales in Peninsular Malaysia and Sabah by 15.8 per cent and 17.4 per cent, respectively.
However, the imbalance cost past through (ICPT) process has yet to be automatically effected, TNB said. When fully effected, its results will need to reflect the over-recovery amounting to about RM1.5 billion (net of tax), which is subject to final confirmation.
TNB president and chief executive officer Datuk Seri Azman Mohd said the current global economic environment will bring new challenging landscape for the group.
"The commissioning of Manjung 4 (power plant) and our recent success in a strategic acquisition proved that TNB will always remain on path towards sustainability and growth, regardless of any setbacks thrown to us," Azman said in a separate statement.
During the Q2, TNB electricity sales rose 13 per cent to RM10.57 billion from RM9.33 billion a year ago. The rise was mainly from electricity sales in the peninsula and Sabah, which had seen tariff hikes of 12.6 per cent and 14.2 per cent, respectively.
The national utility enjoyed higher revenue on annual basis as the latest numbers included three months of higher base tariff compared to two months in the previous year. This is due to the timing of electricity tariff revision that only took place on January 1 2014.
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