KUALA LUMPUR: Tenaga Nasional Bhd’s earnings fell to RM789.40mil in the third quarter ended May 31, 2015 from RM1.627bil a year ago due to the recognition of the imbalanced cost pass through (ICPT).
The power giant said on Thursday the financial performance was impacted mainly due to the recognition of the ICPT for the period from January 2014 to May 2015 in the current quarter amounting to RM1.820bil.
ICPT is a mechanism under the Incentive Based Regulation (IBR) framework allowing Tenaga as the utility to reflect changes (either an increase or reduction) of the fuel and other generation costs in the electricity tariff every six months.
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Tenaga’s operating profit fell to RM888.50mil in the Q3, 2015 from the RM1.883bil. Revenue fell 13.8% to RM9.905bil from RM11.499bil a year ago. Earnings per share were 13.99 sen compared with 28.83 sen.
During the quarter, it sustained foreign exchange (forex) transaction losses of RM114.90mil compared with just RM9.9mil a year ago.
Tenaga recorded sales of electricity of RM10.823bil against RM10.611bil a year ago, mainly from sales of electricity in the Peninsular Malaysia, which recorded an increase of 2.4% or RM241.4mill.
For the nine months ended May 31, 2015, its earnings were 3.6% higher at RM5.297bil compared with RM5.111bil in the previous corresponding period. Revenue was higher by 1.5% at RM31.542bil compared with RM31.069bil.
The group recorded a 10.8% or RM3.133bil improvement in sales of electricity from RM29.018bil to RM32.15bil.
“The improvement was mainly from sales of electricity in Peninsular Malaysia and Sabah, which each recorded an increase of 10.9% and 10.8% respectively.
“This is resulted from the increase in the average electricity tariff in the peninsula of 14.9% and Sabah of 16.9% effective Jan 1, 2014. Additionally, Peninsular
Malaysia and Sabah both registered a growth of 2.5% and 4.0% respectively, as compared to the last corresponding period,” it said.
When compared with the second quarter, it recorded higher total sales of electricity of RM10.823bil compared to RM10.567bil. This was an increase of RM255.3mil or 2.4% for the second quarter.
Tenaga said this was reflective of the increase in the demand growth of 1.3% in the Peninsular Malaysia.
“The quarter experienced a lower profit attributable to the owners of the company of RM789.4mil as compared to RM2.156bil recorded in the preceding quarter mainly due to the recognition of the ICPT,” it said.
* The two ICPT key components are FCPT and GSCPT.
FCPT: Fuel Cost Pass-Through component captures any variation in fuel cost (specific to piped gas, LNG and coal) as a result of changes in the fuel price, fuel quantity, generation mix and etc.
GSCPT: Generation Specific Cost Pass-Through component captures any variation in other generation specific costs as a result of changes in other costs associated with the power purchase agreements (PPAs & Service Level, Agreements (SLA)) and fuel procurement contracts i.e. Coal Supply Agreement (CSA), Coal Supply and Transportation Agreement (CSTA), Gas Supply Agreement (GSA) / Gas Framework Agreement (GFA) and etc.
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