KUALA LUMPUR: Tenaga Nasional Bhd’s (TNB) pre-tax profit for the second quarter ended Feb 29, 2016 fell to RM1.50 billion from RM2.36 billion in the same quarter last year.
Revenue declined to RM10.48 billion from RM10.61 billion previously, it said in a filing to Bursa Malaysia today.
“The decline in revenue in the first half of the financial year ending Aug 31, 2016 (FY2016) was due to the recognition of the Imbalance Cost Pass-Through (ICPT) over-recovery amount of RM1.39 billion, resulting from the reduction in generation costs due to lower fuel prices,” the company said in a separate statement.
The reporting of the ICPT in TNB’s financial statements was first reflected in the third quarter of FY2015, after thorough review and deliberation between TNB and the relevant regulatory parties, it said.
TNB President and Chief Executive Officer, Datuk Seri Azman Mohd said the company continued to experience the benefits of the ICPT under the Incentive Based Regulation in terms of stabilised earnings and limiting its exposure to variations in generation and fuel costs.
“In the current environment of volatile electricity demand and changing power consumption patterns, TNB’s earnings visibility is a strategic tool in providing insights into planning the company’s future requirements.
“At the same time, the ICPT mechanism has also demonstrated that in spite of a 3.6 per cent increase in demand growth for the current period, savings from lower generation costs resulting from the decline in global fuel prices will be passed back to consumers”.
