KUALA LUMPUR — May 25, 2018: Tenaga Nasional announced today that it has recorded a net profit of RM2.11 billion for the first quarter ended last March 31 on the back of RM12.27 billion in revenue.
Due to a change in the financial year, the performance cannot be compared to any previous comparative period.
“The implementation of the Incentive Based Regulation since 2014 has ensured transparency in terms of tariff setting and the input costs that are associated with the generation of electricity,” TNB President and Chief Executive Officer Datuk Seri Ir Azman Mohd said in a statement.
The framework also promoted efficiency gains and financial sustainability of the industry, which is essential to ensure the reliability and security of the nation’s electricity supply.
Azman said TNB has maintained world-class performance in supply electricity while the electricity tariff rate of 21.8 sen per kWh (0-200 kWh) and 33.4 sen/kWh (201-300 kWh) has remained constant since 1997 and 2009 respectively.
“Around 64 per cent of our domestic customers are currently enjoying these low tariff rates by consuming less than 300 kWh or equivalent to RM77 of electricity per month,” he added.
On its outlook, 2018’s financial results are expected to remain stable as electricity demand growth will continue given the positive outlook for the economy.
In a filing with Bursa Malaysia, Sime Darby said the net profit was lower due to additional interest income received in the earlier quarter.
The group said its profit before interest and tax saw an improvement due to the recovery of the Australian mining industry and improved sales in its motors and industrial divisions.
Group Chief Executive Officer Jeffri Salim Davidson said the company would remain focused on core sectors and would continue to explore opportunities to accelerate growth and drive its businesses forward.
The motor division’s performance is expected to improve with higher sales from new model launches in the coming quarters, though it would continue to be affected by strong competition and cautious consumer sentiment.
Against a backdrop of uncertainties in the global economy, the board expects the group’s performance for the financial year ending June 30 to be satisfactory. — Bernama