Tenaga… dated July 2012

TNB posted a RM631.6 million net profit in the third quarter ended May 31 2012.

 

The outlook for its financial year ending August 2013 (FY13) appears more upbeat. This will be sweetened by a possible tariff re-rating after the general election.

TNB's FY13 outlook should improve as the re-gasification terminal in Malacca will commence operation in September 2012 while the re-negotiation of the first- generation independent power producers (IPPs) as well as declining coal price may potentially mitigate the higher generation cost.

 

TNB had been assured that it will not have to bear the brunt of higher gas prices when it starts importing liquefied natural gas in September 2012. This seems to indicate that even if gas prices changed, the impact on TNB would be neutral.

 

These positive developments will help TNB mitigate rising operating costs and boost its bottom line.

 

Falling global coal and US-based natural gas prices will positively transform TNB's cost structure.

 

Tenaga and a consortium of Pendekar Power Sdn Bhd and Mitsui & Co Ltd are said to have put in the lowest bids for the new Prai combined cycle gas turbine (CCGT) power plant.