Aseambanker's Warning On Tenaga And Tenaga Post Massive Losses!

Published this morning: Tenaga may post RM1b quarterly loss

• Maybank Investment Bank reiterates 'hold' rating on the stock
  
  TENAGA Nasional Bhd, Malaysia’s state-run power utility, may post a quarterly loss of RM1 billion (US$280 million) after a weaker ringgit increased foreign debt costs, Maybank Investment Bank Bhd said.
  
  The Kuala Lumpur-based electricity provider, announcing results for the three months ended November 30 today, may incur foreign-exchange losses of about RM1.4 billion for the quarter, Ong Chee Ting, an analyst at Maybank, said in a report. Tenaga made RM1.51 billion in profit a year earlier.
  
  “While these losses are not immediate cash outflows to Tenaga, their enormity is likely to spook investors,” Ong said. Slowing demand for power in Malaysia in the global recession and higher average coal costs also weighed on earnings, he said.
  
  Debt denominated in foreign currencies, mostly the US dollar and the Japanese yen, accounted for almost half of Tenaga’s borrowings of 22.7 billion ringgit last fiscal year. The ringgit has lost 9.2 per cent against the dollar in the past six months and declined 23 per cent against the yen.
  
  Maybank cut its earnings forecasts for Tenaga for the years ending August 2010 and 2011 by between 22 per cent and 24 per cent. Ong reiterated his “hold” rating on the stock.
  
  At midday, Tenaga shares Tenaga was flat at RM6. - Bloomberg

Firstly Tenaga closed the day up 5 sen at 6.05!

And Tenaga just released their earnings.

It was NOT pretty!

And this what's said in the earnings notes.

As a consumer, frankly I am appalled by Tenaga's earnings.

I look at my bills and I see myself paying more than 25% increase on my monthly electrical bills. And despite consumers paying more (Tenaga's sales revenue increased by 27% compared to the corresponding quarter last financial fiscal year), this whopping losses of 944 million is simply beyond my comprehension.

Why? How? What?

Sigh!