TNB Performance Subdued Due to Higher Generation Costs & Lower Forex Translation Gain

17/07/2014

Tenaga Nasional Berhad (TNB) announced a 0.8% decline in Group Operating Profit to RM4.93 billion for the nine months of the Financial Year ending 31st August 2014 (FY2014) as compared to RM4.97 billion in the corresponding period last year on continued burning of the more expensive Liquefied Natural Gas (LNG), oil and distillate.

This higher generation costs resulted in EBITDA margin reduction by 2.2 percentage point to 27.5% for 9MFY2014 as compared to 29.7% for the same corresponding period in FY2013.

Summary of highlights:

9 months FY2014

 
• Group Operating Profit declined by 0.8% to RM4.93 billion (9MFY2013 : RM4.97 billion) due to higher generation costs
 
• Profit Before Tax shrank by 15.8% to RM4.80 billion (9MFY2013 : RM5.71 billion)
 
• EBITDA margin reduced by 2.2 percentage point to 27.5 % (9MFY2013 : 29.7%)
 
• Lower Forex Translation Gain of RM292.2 Forex Translation Gain of RM292.2 million (9MFY2013 : RM1,110.7million)

3 months ended 31st May 2014 (3rd Quarter FY2014)

 
• Group Operating Profit increased to RM1.95 billion (2QFY2014 : RM1.47 billion)
 
• Profit Before Tax rose to RM1.97 billion (2QFY2014 : RM1.23 billion)
 
• EBITDA margin increased to 27.4% (2QFY2014 : 27.0%)