KUALA LUMPUR: Tenaga Nasional extended its losses throughout the day on Friday, July 22 after posting a set of 'shocking results' in the third quarter ended May 31, 2011, but analysts believe this was as bad as it gets.
At 3.49pm, it was down 29 sen to RM6.23 with 23.29 million shares done.
The FBM KLCI fell 1.64 points to 1,564.17, weighed down by Tenaga's decline. Turnover was 907.68 million shares valued at RM1.42 billion. The broader market was more positive with 384 gainers to 293 losers and 297 stocks unchanged.
Tenaga posted net losses of RM440.20 million for the third quarter a stark contrast from the net profit RM1.11 billion a year ago.
Revenue for 3Q rose marginally to RM7.77 billion from RM7.72 billion in 2010. Loss per share was 8.08 sen from earnings per share 20.39 sen a year earlier, net assets per share was RM5.32.
For the nine months ended May 31, Tenaga's net profit fell to RM903 million from RM2.81 billion in 2010 despite an increase in revenue to RM22.99 billion from RM22.45 billion.
OSK Research described the results as 'shocking' as it had expected a breakeven results. Even the most bearish of the previews had also only foreseen a slight loss, it said.
It said the main impact on Tenaga was from the outage at Janamanjung which took everyone by surprise in an environment of gas shortage and the fact that the restoration of 150 mmscfd from Bekok did not materialize.
'We cut FY11 net profit by 47% and FY12 by 8% mainly by just raising our other fuel cost item (usually hovering at RM200 million to RM400 million annually) to RM1.5 billion in FY11,' it said.
OSK Research said the outlook for TNB would be tough but 'this is as bad as it gets'.
'Gas curtailment has reduced. Janamanjung is back on line and 2% effective tariff hike will boost revenues in July and August. '' So share price took a beating as expected and now is the time to BUY into WEAKNESS,' it said.
At 3.49pm, it was down 29 sen to RM6.23 with 23.29 million shares done.
The FBM KLCI fell 1.64 points to 1,564.17, weighed down by Tenaga's decline. Turnover was 907.68 million shares valued at RM1.42 billion. The broader market was more positive with 384 gainers to 293 losers and 297 stocks unchanged.
Tenaga posted net losses of RM440.20 million for the third quarter a stark contrast from the net profit RM1.11 billion a year ago.
Revenue for 3Q rose marginally to RM7.77 billion from RM7.72 billion in 2010. Loss per share was 8.08 sen from earnings per share 20.39 sen a year earlier, net assets per share was RM5.32.
For the nine months ended May 31, Tenaga's net profit fell to RM903 million from RM2.81 billion in 2010 despite an increase in revenue to RM22.99 billion from RM22.45 billion.
OSK Research described the results as 'shocking' as it had expected a breakeven results. Even the most bearish of the previews had also only foreseen a slight loss, it said.
It said the main impact on Tenaga was from the outage at Janamanjung which took everyone by surprise in an environment of gas shortage and the fact that the restoration of 150 mmscfd from Bekok did not materialize.
'We cut FY11 net profit by 47% and FY12 by 8% mainly by just raising our other fuel cost item (usually hovering at RM200 million to RM400 million annually) to RM1.5 billion in FY11,' it said.
OSK Research said the outlook for TNB would be tough but 'this is as bad as it gets'.
'Gas curtailment has reduced. Janamanjung is back on line and 2% effective tariff hike will boost revenues in July and August. '' So share price took a beating as expected and now is the time to BUY into WEAKNESS,' it said.
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