By Yantoultra Ngui
Malaysian electricity-utility Tenaga Nasional Bhd. (5347.KU) reported its second-quarter results on Friday. Here's what you need to know:
NET PROFIT: Second-quarter net profit declined to 1.12 billion ringgit ($266 million) from MYR1.24 billion net profit in the same period a year earlier. This was below the consensus estimate for MYR2.06 billion compiled by FactSet.
REVENUE: Second-quarter revenue climbed to MYR12.88 billion from MYR12.5 billion a year earlier. This was also lower than the consensus estimate for MYR12.96 billion compiled by FactSet.
WHAT WE WATCHED:
--Fuel Costs: Tenaga's revenue declined on quarter due to higher fuel costs, which were up 12% in the second quarter. The company, however, expects coal prices to trend lower in coming months and relieve pressure on its expenses.
--Debt Levels: Tenaga's debt-to-equity level slipped to 44% from 45% in the first half mainly due to the repayment of a $300 million loan taken from Japan's Mizuho Bank.
--International Performance: Tenaga's earnings before interest, tax, depreciation and amortization from its solar and wind business in U.K. were higher, while Ebitda from its Indian business was lower due to higher coal-related fuel costs.
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