The power giant reported its earnings rose 12.2% to RM1.48bil compared with RM1.32bil. Earnings per share were 26.22 sen compared with 23.40 sen. It declared an interim dividend of 17 sen compared with 10 sen.
Tenaga's revenue increased by 6.4% to RM11.16bil from RM10.49bil. It attributed this mainly due to lower over-recoverability of imbalance cost pass-through (ICPT) recognised during the current quarter amounting to RM191.1mil as compared to RM713.1mil recognised in the corresponding quarter.
“The lower over-recoverability of ICPT was resulted from higher average coal price recorded during the quarter under review as compared to the corresponding quarter,” it said.
In Q2, there was a forex translation gains of RM28.7mil compared with a loss of RM176.9mil a year ago. There was also a transaction gain of RM7.2mil compared with a loss of RM11.6mil a year ago.
Tenaga said the Q2 operating profit was lower at RM1.98bil from RM2.34bil in Q1, FY17. This was due to a marginal decrease in revenue of RM79.3mil and higher operating expenses of RM255.5mil.
“The profit attributable to the owners of the company also shrunk from RM1.74bil recorded in the preceding quarter to RM1.48bil, a decrease of RM258.6mil or 14.9%,” it said.
For the first half, its earnings dipped 2.2% to RM3.22bil from RM3.29bil but revenue increased 5.8% to RM22.40bil from RM21.16bil, “driven primarily by 2.3% unit electricity demand growth in Peninsular Malaysia”.
Tenaga said it continues to heavily invest in the Malaysian electricity supply industry with capital expenditure (capex) for 1HFY2017 being recorded at RM4.81bil.
“The adjusted profit after tax for 1HFY2017 was recorded lower by 5.2% at RM2.91bil as compared to RM3.07bil recorded during the same period last year. The lower profit was attributed by higher operating expenses mainly from increased provision on electricity debtors,” it said.
Its president and CEO Datuk Seri Azman Mohd, commented that the power company was committed in optimising operational efficiencies and unlocking value across the group, both in the regulated and non-regulated businesses.
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