TNB posted a RM631.6 million net profit in the third quarter ended May31 2012.

The outlook for itsfinancial year ending August 2013 (FY13) appears more upbeat. This will besweetened by a possible tariff re-rating after the general election.

TNB's FY13 outlookshould improve as the re-gasification terminal in Malacca will commenceoperation in September 2012 while the re-negotiation of the first- generationindependent power producers (IPPs) as well as declining coal price may potentiallymitigate the higher generation cost.

TNB had beenassured that it will not have to bear the brunt of higher gas prices when itstarts importing liquefied natural gas in September 2012. This seems toindicate that even if gas prices changed, the impact on TNB would be neutral.

These positivedevelopments will help TNB mitigate rising operating costs and boost its bottomline.

Falling global coal and US-based natural gas prices will positivelytransform TNB's cost structure.

Tenaga and a consortium of Pendekar Power Sdn Bhd and Mitsui & CoLtd are said to have put in the lowest bids for the new Prai combined cycle gasturbine (CCGT) power plant.