KUALA LUMPUR, Jan 28, 2016:

Tenaga Nasional Bhd’s (TNB) pretax profit for the first quarter ended Nov 30, 2015 fell to RM2.16 billion from RM2.62 billion in the same quarter last year.

Revenue declined to RM10.68 billion from RM11.03 billion previously, it said in a filing to Bursa Malaysia today.

TNB said the 3.2% fall in revenue was due to the recognition of Imbalance Cost Pass-Through (ICPT) over-recovery for the first quarter of financial year 2016 of RM681.8 million.

“The ICPT over-recovery are savings derived from lower generation costs, mainly as a result of reduction in world commodity prices and these savings are being passed back to the consumers in the form of tariff rebates,” it said in a statement.

TNB president and chief executive officer Datuk Seri Azman Mohd said the company was fortunate, to some extent, for the implementation of Incentive-Based Regulation (IBR) and ICPT.

“The former allows TNB to have a fair level of return so that we can operate efficiently, while the latter naturally insulates us from fluctuations in generation costs.

“We will continue to monitor our primary exposures on the short- to medium-term growth prospects, as well as long-term foreign exchange cost impact on our current on-going projects.”

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