Tenaga Nasional shares up on Bangladesh deal

Tenaga Nasional Bhd’s shares rose 2.0 sen to RM12.30 as the market reacts positively to its venture in Bangladesh.

As at 11.58am, a total of 2.14 million shares were traded.

tenangaTenaga Nasional has signed a memorandum of understanding with Powertek Bhd and Bangladesh Power Development Bhd to develop a 1,320-megawatt coal-fired power plant at Maheshkali, Bangladesh, on a build-own-operate basis.

AmResearch said it was neutral on the venture as it is part of Tenaga Nasional’s strategy of overseas expansion.

“On the domestic front, we remain convinced that Tenaga Nasional’s earnings revision cycle from the tariff hike, which commenced in the second quarter of this year, will continue to propel its re-rating focus forward.

“Additionally, coal costs have fallen to below US$70 per tonne compared with the new tariff structure’s implied at US$87.50 a tonne, which could easily offset higher liquefied natural gas prices,” it said in a note today.

The research house maintained its “buy” call on the stock with an unchanged fair value of RM15 — Bernama.

 – Business Times, Malaysia.