Share price is at lowest in more than 52 weeks
The first reset was in June 2016 for GF2 and GF3, and (v) proposing RULS interest rate adjustment from 15% to 8% to improve bottom-line.
“At this juncture, management is unable to ascertain when the plant will achieve its full turnaround.
“The on-going initiatives taken by the management has managed to reduce the unplanned outages rate (UOR) for GF3 from 45% in FY14 to 18% in FY15,” it said.
PublicInvest Research said during its end-September visit, UOR for GF3 has been further reduced to 6.25%, while UOR at GF1 and GF2 were at 4.5% and 1.25% respectively.
“We opine the plant’s earnings will continue to be negatively affected in the near term mainly due to higher repair and maintenance costs. Nevertheless, KEV losses are immaterial to Tenaga’s overall net profit,” it said.
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