Tenaga Nasional Bhd : Fuel costs may hurt TNB again
Tenaga Nasional Bhd (TNB) expects to be hit by high fuel costs again in the fourth quarter, mainly because of a prolonged gas supply shortage. It had already posted a RM440.0mil loss in the third quarter, its first quarterly loss in three years, but chief executive officer Datuk Seri Che Khalib Mohamad Noh stopped short of saying if TNB would also lose money in the fourth quarter. He added that TNB may see lower revenue if the economy slows because its large customers are factories, offices and malls. The shortage of gas for the power sector means TNB has to spend some RM400.0mil extra a month to buy alternative fuel like distillates and medium fuel oil. Petronas supplies gas to the power sector, but this has been disrupted by frequent maintenance by the national oil and gas company. In its third quarter, TNB spent an additional RM1.3bil on fuel, which dragged the group into the red. For the nine months to May 31, TNB’s net profit was 68.0% lower at RM903.0mil and it expects full-year numbers to be lower than 2010. – Business Times
PPB Group Bhd In final lap of flour business buy
PPB Group Bhd will soon complete the purchase of a 20.0% stake in Wilmar International Ltd’s China flour-milling business. CEO of Wilmar, Kuok Khoon Hong said that the purchase should be completed in the next couple of weeks. However, Kuok said it is not immediately certain if the 20.0% stake in Wilmar’s flour- related business will also include an interest in a new plain noodle manufacturing business in China, which does not compete directly with instant noodle brands as it requires users to add their own flavoring. Kuok also said Wilmar’s expansion into other consumer businesses like flour, rice and now noodles in populous countries like China, Indonesia, and India ‘will eventually be very significant earnings drivers for the group’ who sees the current bearish market sentiment as an opportunity to snap up good assets in the agri- commodity and consumer space. He added that the group remains positive on its prospects despite a challenging operating environment in China and uncertainties in the global economy and that the Asian economies will continue to see strong growth. For the 1H11, Wilmar’s revenue rose 48.6% to US$20.1bil from US$13.5bil the year before while net profit was up 4.5% to US$779.8mil from US$745.9mil in 1H10. Wilmar, the leading edible oil player in China, sees 60.0% of its earnings from the country. –The Edge
Banking Sector More flexibility for locally incorporated foreign banks
Bank Negara Malaysia (BNM) said it is according greater flexibility to newly licensed locally incorporated foreign banks that have yet to establish new branches or currently have less than eight. Presently, locally incorporated foreign banks can open up to eight additional branches, subject to a specified distribution ratio of one (market centre): two (semi-urban): one (non-urban). However, BNM said that with the flexibility, locally incorporated foreign banks that have yet to establish new branches or currently have less than eight will not be required to comply with the distribution ratio for the setting up of their branches. This will facilitate the newly licensed locally incorporated foreign banks to better serve their targeted customer segments and niche area. This flexibility would also enable the existing locally incorporated foreign banks to achieve a meaningful scale of operations to contribute more effectively to the overall development of the financial sector of Malaysia. –The Edge
No comments:
Post a Comment