The group's results were dragged down largely by the very poor fourth quarter results, a net loss of RM453.9 million
KUALA LUMPUR: Tenaga Nasional Bhd (TNB)'s net profit for the year ended August 31 2011 fell by 84.3 per cent to RM499.5 million, its lowest in 13 years, after the national utility company booked higher operating cost to buy energy-related commodities.
TNB had to spend more to buy oil, distillates and coal to cushion the limited supply of gas. Gas is the mainstay energy, accounting for 60 per cent of the country's power ge-neration capacity.
Last year, group level net profit stood at RM3.2 billion.
TNB president and chief executive officer Datuk Seri Che Khalib Mohamad Noh said the following quarter will be a challenge for TNB as it grapples with limited gas supply and more expensive alternate fuel and coal to ensure continued supply of electricity.
"There's nothing much we can do as gas volume is low and fuel costs five times more than gas. Electrici-ty demand in 2012 is expected to grow by four per cent but it will be a challenging year," Che Khalib told reporters yesterday at TNB's headquarters.
The group's results were dragged down largely by the very poor fourth quarter results, a net loss of RM453.9 million, compared with a net profit of RM555.2 million in the same quarter the previous year.
Quarterly revenue, however, climbed to RM9.1 billion from RM8 billion previously on higher sales of electricity.
TNB spent a total of RM3.3 billion on fuel costs last year, comprising gas, coal, oil and distillates.
Meanwhile, Che Khalib said talks between TNB and Petronas (Petroliam Nasional Bhd) on compensation issues due to the shortage of gas to TNB and industries are ongoing .
"The industry cannot sustain when the supply of gas is low. We just don't have enough gas. The stakeholders (the government, TNB, Petronas and the independent power producers) are having discussions but there is no solution yet," said Che Khalib.
He added that negotiations are ongoing on how it can assist TNB in relieving the utility's as well as other industries' burden.
KUALA LUMPUR: Tenaga Nasional Bhd (TNB)'s net profit for the year ended August 31 2011 fell by 84.3 per cent to RM499.5 million, its lowest in 13 years, after the national utility company booked higher operating cost to buy energy-related commodities.
TNB had to spend more to buy oil, distillates and coal to cushion the limited supply of gas. Gas is the mainstay energy, accounting for 60 per cent of the country's power ge-neration capacity.
Last year, group level net profit stood at RM3.2 billion.
TNB president and chief executive officer Datuk Seri Che Khalib Mohamad Noh said the following quarter will be a challenge for TNB as it grapples with limited gas supply and more expensive alternate fuel and coal to ensure continued supply of electricity.
"There's nothing much we can do as gas volume is low and fuel costs five times more than gas. Electrici-ty demand in 2012 is expected to grow by four per cent but it will be a challenging year," Che Khalib told reporters yesterday at TNB's headquarters.
The group's results were dragged down largely by the very poor fourth quarter results, a net loss of RM453.9 million, compared with a net profit of RM555.2 million in the same quarter the previous year.
Quarterly revenue, however, climbed to RM9.1 billion from RM8 billion previously on higher sales of electricity.
TNB spent a total of RM3.3 billion on fuel costs last year, comprising gas, coal, oil and distillates.
Meanwhile, Che Khalib said talks between TNB and Petronas (Petroliam Nasional Bhd) on compensation issues due to the shortage of gas to TNB and industries are ongoing .
"The industry cannot sustain when the supply of gas is low. We just don't have enough gas. The stakeholders (the government, TNB, Petronas and the independent power producers) are having discussions but there is no solution yet," said Che Khalib.
He added that negotiations are ongoing on how it can assist TNB in relieving the utility's as well as other industries' burden.
