RM6.4b PROFIT: Utility giant attributes performance to lower tax and softer coal and oil prices
TENAGA Nasional Bhd (TNB) has posted a record net profit of RM6.4 billion for the year ended August 31 2014 due to lower corporate tax and softer coal and oil prices.
This was 18.5 per cent higher than the RM5.4 billion achieved last year, TNB, Southeast Asia’s largest utility, also saw group revenue rising to RM42.7 billion from RM37.1 billion last year.
For the fourth quarter, the group posted a 46 per cent rise in net profit to RM1.35 billion from RM927 million a year ago.
TNB chairman Tan Sri Leo Moggie said it would be allocating a record capital expenditure (capex) of RM10 billion, up from RM8.5 billion last year, to ensure sustainable and reliable electricity supply.
“Of the RM1 billion net profit increase from last year’s RM5.4 billion, 56.4 per cent was due to a reduction in corporate tax rate, in addition to the 2.5 per cent electricity demand growth in Peninsular Malaysia.
“For 2015, electricity demand growth is expected to be in line with the country’s projected economic growth of between five and six per cent. In view of that, the board of directors expects the group’s prospect for 2015 to remain stable,” he said, here, yesterday.
Meanwhile, TNB president and chief executive officer Datuk Seri Azman Mohd said out of the RM10 billion capex, RM4.9 billion would be for maintaining and improving systems.
“The major projects are all on schedule. The 1,000 megawatt (MW) Janamanjung Unit 4 is 99 per cent completed, Prai (1,070MW, 80 per cent), Ulu Jelai Hydro (372MW, 64 per cent), Hulu Terengganu Hydro (265MW, 85 per cent) and Janamanjung Unit 5 (1,000MW, 19 per cent).”
TNB has recommended a final single-tier dividend of 19 sen, subject to shareholders’ approval at its annual general meeting next month.