STRONG RESULTS: Group-level revenue hits mind-boggling RM37.13b as utility expects steady demand growth
TENAGA Nasional Bhd posted a RM4.6 billion net profit for the financial year ended August 31 2013, up from the RM4.4 billion recorded in the same period last year.
The higher profit ratio was due to better electricity sales in Peninsular Malaysia and Sabah, which grew at 4.3 per cent and 7.3 per cent, respectively.
Group-level revenue came in at a mind-boggling RM37.13 billion from RM35.84 billion previously.
TNB chairman Tan Sri Leo Moggie said for the financial year ending 2014, the electricity demand growth is expected to remain steady, bolstered by the improving global outlook and supported by domestic economic growth of 5.0 to 5.5 per cent, as announced in the 2014 Budget.
He said this after the company, one of the largest capitalised stock on Bursa Malaysia, announced its 12-month financial report card.
Still, 2013 would have been a much better year for TNB, if not for the foreign exchange losses in the last three months of its financial year.
Net profit for the fourth quarter slumped by more than two thirds, resulting in the utility reporting a net profit of RM219.4 million against the RM1 billion in the same period last year.
The forex losses were attributed to the weakening of the ringgit against the US dollar and the Japanese yen at 6.4 and 9.3 per cent, respectively.
TNB president and chief executive officer Datuk Seri Azman Mohd expects 2014 to be stable year and that demand for electricity will continue to be growth driven.
Leo Moggie said TNB was also the world's 66th best electric utility in 2012, up from 90th in 2011, as surveyed by Platts.
Platts monitors energy companies' financial performance by using four key metrics - revenues, asset worth, profit and returns in invested capital as the core yardstick.
With this in mind, Leo Moggie pledged that the utility will ensure reliable, sustainable and efficient supply of electricity for smooth implementation of Malaysia's reform initiatives under the Economic Transformation Programme.
Meanwhile, the utility has scrapped its bid for the retail arm of Ireland's Bord Gais Eireann, TNB chief financial officer said.
"We want to focus on our current projects, especially domestic ones," said its chief financial officer Fazlur Rahman Zainuddin.
Bord Gais Eireann announced in May that it had started the sale process for Bord Gais Energy, which sources said will fetch about e1.5 billion (RM$2.07 billion).
Bord Gais Energy has a 445 megawatt power plant, a portfolio of onshore wind assets and an energy distribution network business in Northern Ireland.