Power firm Tenaga Nasional said its net profit for the year to August dived 33 percent because of a strong yen and higher fuel costs.

State-owned Tenaga said net profit fell to RM1.4 billion, compared with RM2.1 billion the previous year but sales rose seven percent to RM15.38 billion due to stronger electricity demand.

The company also recorded a foreign exchange loss of RM92.3 million, compared with a gain of RM785.5 million the previous year.

Chairperson Jamaludin Jarjis said Tenaga had to spend RM430 million more on fuel during the year due to a shortage of gas in the second half.

But the commissioning of the first phase of the Janamanjung plant in Perak six months ahead of schedule helped Tenaga to offset the negative impact of the stronger yen and higher fuel costs, he told reporters.

During the year, electricity demand grew six percent and was expected to expand by seven percent in the current year, he added.

EPF stake

Jamaludin said Tenaga may invite local institutional investors such as the Employees Provident Fund to take a stake in its power plants as part of efforts to cut its debt levels.

Other measures include the sale of minority stakes in independent power producers, issuing convertible bonds to increase shareholders funds and improving debt management, he added.

At the end of August, Tenaga had loans totalling RM29.42 billion, of which 48 percent were in foreign currencies.

Tenaga said it expected results for the current financial year to be satisfactory due to sustained economic growth and measures taken to improve the company's efficiency. AFP