TENAGA Nasional Bhd’s (TNB) net profit increased to RM4.5 bil in the financial year ended Dec 31, 2019 from RM3.7 bil in the previous year on the back of marginally higher revenue of RM50.9 bil.
The improved profit is mainly due to the absence of a RM802.7 mil impairment on its investment in associates in FY18.
TNB also recorded a foreign currency translation gain of RM200.6 mil against a loss of RM393.1 mil for FY18.
In the fourth quarter just ended, the utility giant returned to the black with a net profit of RM653.3 mil from a net loss of RM134.3 mil year ago while revenue fell slightly to RM12.2 bil versus RM12.5 bil.
TNB’s 4QFY19 also saw the group experiencing prolonged forced outages of coal plants, namely TNB Janamanjung and Kapar Energy Ventures, which has impacted the earnings of the group.
Looking forward, the group expects the Covid-19 outbreak to exert additional pressure on the growth of electricity demand, considering the impact on tourism-related sectors, and to a certain extent, in the manufacturing sector through disruptions within the global supply chain and the expected slowdown in China.
TNB’s shares closed at RM12.10 on Feb 28, down 40 sen, with 10.68 million shares changing hands. – Feb 28, 2020
