TENAGA NASIONAL BERHAD FINANCIAL ANALYSIS 1998-2007
i)PROFITABILITY RATIOS AND SALES REVENUE5
ii)LEVERAGE MANAGEMENT 9
iii)EARNINGS PER SHARE11
v) FIXED ASSET TURNOVER15
APPENDIX 1: RAW DATA
APPENDIX 2: ANNUAL REPORT 1998-2007
INTRODUCTION OF CORPORATION PROFILE
Tenaga Nasional Berhad (TNB) is the largest utility company in Malaysia. It is also the largest power company in Southest Asia with RM65 billion worth of assets serving over six million customers throughout Peninsular Malaysia and the eastern state of Sabah. Its core activities are generation, transmission and distribution of electricity. TNB is the only Malaysian energy company to rank among the top 50 energy companies in Asia in 2006 (based on the Platts’s survey of the top 250 Global Energy Companies) while internationally it is ranked as 168th. TNB was formed in 1990 by the Electricity Supply Successor Company Act 1990, as the successor of the National Electricity Board of the States of Malaya (Lembaga Letrik Negara Tanah Melayu). It was listed on the Bursa Saham Securities Berhad in the year 1990. TNB Group currently has a complete power supply system generating capacity of about 11,200 MW. In Peninsular Malaysia, TNB contributes to 55 percent of the total industry capacity through six thermal stations and three major hydroelectric schemes. It also manages the transmission network i.e. National Grid which links TNB power stations and IPPs to the distribution network. The National Grid is linked via 132kV HVAC and 300 kV HVDC interconnection to Thailand and
230kV cables to Singapore. TNB’s distribution network is managed through a comprehensive distribution system; customer service centres and calls management centres. Through its subsidiaries, TNB is also involves in the manufacturing of transformer, high voltage switchgears and cables, provision of professional consultancy services, architectural, civil and electrical engineering works and services, repair and maintenance, research and development and project management services. TNB also offers higher education through its university – University Tenaga Malaysia (Uniten). The Group mission is “We Are Committed to Excellence in Our Products and Services”
FINANCIAL ANALYSIS (1998 – 2007)
The purpose of this chapter will cover the analysis of financial statement from year 1998 to 2007 of Tenaga Nasional Berhad (TNB) to help evaluate the operating performance and financial positions. Operating performance analysis focuses on how well the organization is matching revenues and expenses or expenditures while financial position analysis focuses on how well positioned the organization is to pay its bills. The Group's principal activities are generating, transmitting, distributing, operating and selling electricity .Other activities include repairing, testing and maintaining power plants, providing engineering, procurement and construction services for power plants related products, assembling and manufacturing high voltage switchgears, coal mining and trading . Operations are carried out in Malaysia, Mauritius, Pakistan, India and Indonesia.
Profitability Ratio And Sales Revenue
Profitability ratio has increased tremendously from a negative 28% in 1998 to a positive 18% in 2007. This shows how well TNB is performing by analyzing profit earned relative to sales, total assets and net worth. The Group recorded a 14.4 per cent growth in revenue to RM23,320.4 million in FY2007 from RM20,384.2 million in FY2006 and 110 per cent growth in revenue from RM11,075.6 million in FY1998. This can be seen in a staggered rise and was driven by various factors such as the implementation of the new tariff structure which took effect in the middle of Y2006, foreign exchange translation gains and a 5.3 per cent increase in...