KUALA LUMPUR: TENAGA NASIONAL BHD [] is benefiting from the stronger ringgit versus the US dollar in terms of interest payments on its foreign loans, especially loans denominated in the US dollar.
The power giant services the interest on its overseas loans in both the US dollar and yen with its US dollar loan exposure coming to US$5 billion and its borrowings in yen at five billion yen.
Tenaga president and chief executive officer Datuk Seri Che Khalib Mohamad Noh said on Monday, Feb 14 the lower repayments due to the stronger ringgit had also partly cushioned the impact of rising coal prices.
"Our debt position now has been reduced. Our servicing of interest is in the US dollars as well as Japanese yen. Even though the Japanese yen has been strengthening against the US dollar but because the dollar has depreciated so much compared to the ringgit, we also gain,' he told reporters at its Chinese New Year celebrations.
"We are going to have a big repayment in April this year and with this strengthening of ringgit it will help us to further reduce our obligation on repayment," he added.
Asked if the rising coal price would reduce the benefits of a stronger ringgit, Che Khalib said while coal prices have risen by 20%, the ringgit had strengthened by 10%. This would mean that coal price has gone up by 10%, he said.
On Tenaga's coal supply, Che Khalib said there was no problem about securing the supply from Kalimantan, Indonesia as the flood situation there had improved.
However, its supply from Newcastle, Australia was still a problem, due to the recent floods.
On coal price, Che Khalib said it was now in the region of US$120 per tonne which has surpassed Tenaga's US$100 per tonne level. 'We are finding ways to source for lower priced coal," he added. ' Bernama
The power giant services the interest on its overseas loans in both the US dollar and yen with its US dollar loan exposure coming to US$5 billion and its borrowings in yen at five billion yen.
Tenaga president and chief executive officer Datuk Seri Che Khalib Mohamad Noh said on Monday, Feb 14 the lower repayments due to the stronger ringgit had also partly cushioned the impact of rising coal prices.
"Our debt position now has been reduced. Our servicing of interest is in the US dollars as well as Japanese yen. Even though the Japanese yen has been strengthening against the US dollar but because the dollar has depreciated so much compared to the ringgit, we also gain,' he told reporters at its Chinese New Year celebrations.
"We are going to have a big repayment in April this year and with this strengthening of ringgit it will help us to further reduce our obligation on repayment," he added.
Asked if the rising coal price would reduce the benefits of a stronger ringgit, Che Khalib said while coal prices have risen by 20%, the ringgit had strengthened by 10%. This would mean that coal price has gone up by 10%, he said.
On Tenaga's coal supply, Che Khalib said there was no problem about securing the supply from Kalimantan, Indonesia as the flood situation there had improved.
However, its supply from Newcastle, Australia was still a problem, due to the recent floods.
On coal price, Che Khalib said it was now in the region of US$120 per tonne which has surpassed Tenaga's US$100 per tonne level. 'We are finding ways to source for lower priced coal," he added. ' Bernama
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