Monday, October 31, 2011

Tenaga down after 4Q losses, OSK trims earnings

KUALA LUMPUR (Oct 31): Shares of TENAGA NASIONAL BHD [] fell on Monday after'' it announced fourth quarter net loss of RM453.90 million, the second consecutive quarter of losses while OSK Research trimmed its earnings forecasts by 8% and 7% for FY12 and FY13 accordingly.

At 9.08am, Tenaga was down 10 sen to RM5.76. There were 317,900 shares done.

The FBM KLCI rose 1.47 points to 1,483.29. Turnover was 71.11 million shares valued at RM47.61 million. There were 149 gainers, 40 losers and 128 stocks unchanged.

Last Friday, Tenaga reported that at the operating level, the power company reported operating losses of RM248.80 million due to higher fuel costs of coal and utilisation of oil and distillates after the gas curtailment by Petroliam Nasional Bhd.

For the full year ended Aug 31, 2011, its net profit plunged 84.3% to RM499.50 million from RM3.20 billion in FY10. Revenue was 6.2% higher at RM32.20 billion compared with RM30.32 billion.

OSK Research said Tenaga's'' results were within its expectations although below consensus. This was because the utility company had to generate electricity from expensive oil and distillates as it continued to be plagued by gas supply problems.

'Going forward, Tenaga only expects this issue to be resolved in mid-2012 when the Melaka LNG plant is completed. For now, it is seeking compensation from Petronas for the additional fuel cost it has had to incur owing to the gas shortage.

'We trim our earnings forecasts by 8% and 7% for FY12 and FY13 accordingly. Our DCF based FV is intact at RM6.24 and we maintain our NEUTRAL call,' it said.

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