Utility giant Tenaga Nasional, said today its net profit in its first quarter to November rose sharply on the back of cost savings.

Tenaga Nasional said its net profit for the three months to November increased to RM595.60 million from RM8.50 million a year earlier.

In a statement, Tenaga chief executive Che Khalib Mohd Noh said total cost savings of RM169.8 million in the first quarter contributed to the improved bottom line.

He said however that Tenaga Nasional continues to face pressure in terms of its operating expenses, particularly from higher fuel costs and increases in material and logistics charges.

The company posted a foreign exchange translation gain of RM221.60 million, reversing a year earlier loss of RM442.10 million, was due to the ringgit strengthening against other currencies.

Tenaga Nasional is expected to announce a hike in electricity rates next month.