Power giant Tenaga Nasional said it slumped to a net loss of RM26.4 million in the November quarter due to forex losses and recognising deferred tax as a provision.

The result compared with a net profit of RM663.20 million for the same period a year earlier.

Sales rose marginally by four percent year-on-year to RM4.24 billion in the first quarter, operating profit rose 8.8 percent to RM859.40 million but pre-tax profit dropped sharply by 83 percent to RM136.80 million, it said in a statement.

Tenaga said it recorded forex transaction losses of RM382.70 million in the November quarter, compared with a gain of RM293.5 million in the same period a year earlier following the strengthening of the Japanese yen, pound sterling and euro against the ringgit, which is pegged to the US dollar.

The deferred tax increased to RM153.0 million in the first quarter from RM114.7 million a year earlier.

New purchase

Tenaga said it expects its full year performance to remain satisfactory.

Chairman Awang Adek Hussin said Tenaga was exploring the possibility of buying Northern Utility, an independent power producer based in the north of peninsular Malaysia.

"We are still in discussion. If it makes sense to buy at a reasonable price, then we will consider it," Awang told a news conference.

He declined to say when the deal might be signed, adding: "The gap between the asking price and what we are willing to pay is still very wide." - AFP