I will keep my TENAGA-CL until APRIL 29. Hopefully lah.
Tenaga Nasional Bhd (TNB) is expected to announce a better than expected second quarter 2010 earnings on April 29.
According to MIDF Research, the higher earnings are underpinned by the strengthening of the ringgit and improved demand growth.
"Our 2010 gross domestic product is forecast to grow by 5.1 per cent, driven by the manufacturing sector, and this will translate into higher energy utilisation from more vigorous business activity," it said a research note today.
MIDF Research also said any small change in the ringgit against the greenback, would benefit TNB in terms of lower fuel costs and ease the burden of its foreign debts.
TNB's total debt was at RM22.4 billion, of which 25.5 per cent is in Japanese Yen and 22.7 per cent in US dollar.
The research house said the downside risks on TNB would be high capacity payments to the Independent Power Producers (IPPs) and a further rise in fuel prices that may crimp margin expansion. - Bernama
