Tenaga Nasional Bhd (TNB) was among the top losers, losing 13 sen or 2.09 per cent to RM6.10 as at 10.30am today, as investors were concerned over the power utility giant's financial performance.

TNB reported yesterday RM224.7 million net loss for the first quarter ended November 2011 from RM716.5 million net profit in the same period in 2010 due to persistent higher use of oil and distillates.

However, the power company was confident to return to profitability in the second quarter ending February 2012 as it will receive RM2 billion in compensation from the government and Petronas.

HwangDBS Vickers Research said TNB could expect stronger earnings over the next few quarters with the recognition of gas compensation and gradual increase in gas supply to 1,150 million standard cubic feet per day (mmscfd).

The research house maintained "buy" call on TNB for strong earnings recovery.

"We expect TNB's earnings to recover strongly in the 2012 financial year following the RM2 billion gas compensation and increase in gas supply to 1,150 mmscfd," it said in a research note.

It said the gas shortage issue should be resolved following completion of Petronas Gas Bhd's new regas plant in July.

TNB received RM1 billion compensation from the government due to gas shortages and Petronas will pay the balance RM1 billion in the next few months.

Besides the RM2 billion claim, TNB will continue to ask for compensation as the current gas supply still falls below the agreed supply of 1,350 mmscfd.

HwangDBS Research said the gas compensation approval demonstrated TNB's ability to pass on costs increases through the "cost pass through" mechanism. -- BERNAMA