By Yantoultra Ngui
KUALA LUMPUR, Malaysia--Malaysia's national electricity utility Tenaga Nasional Bhd. (5347.KU) said Wednesday net profit for the second quarter ended February dropped 39% from the previous year, mainly dragged by higher operating expenses.
Net profit for the quarter was 1.32 billion ringgit ($337.0 million), compared with MYR2.16 billion a year ago, according to a filing to the local stock exchange. Its revenue for the period fell 1.1% to MYR10.5 billion from MYR10.6 billion a year earlier.
Looking ahead, Tenaga said it remains cautious of its prospects for the financial year ending August 2016, in light of a challenging financial landscape.
"[Malaysia's central bank] in its 2015 annual report, expects that the Malaysian economy will grow by 4% to 4.5% in 2016, with domestic demand continuing to be the principal driver of growth, sustained primarily by private-sector spending," Tenaga said.
"While investments in the oil and gas industry are likely to remain weak in 2016, investments in the non-energy sectors are expected to continue in 2016, thus generating positive spill-overs into the rest of the economy," it said.
Tenaga shares ended flat at MYR14.40 a share, outperforming the local benchmark stock index, which closed 0.01% lower.
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