Tenaga Warns Coal Cost Increases to Hurt Full-Year Earnings
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Tenaga Nasional Bhd., Malaysia’s biggest electricity producer, warned that increases in coal costs in the next six months will have a “negative impact” on its full-year earnings.
The Kuala Lumpur-based utility paid 29 percent more for coal burned at its plants in the three months ended Feb. 28 from a year earlier, according to an exchange filing yesterday. Prices will continue to rise due to accelerated coal demand from Japan to compensate for reduced nuclear power generation following last month’s earthquake and tsunami, Chief Executive Officer Che Khalib Mohamad Noh said.