NON-FINANCIAL Public Enterprises (NFPE) such as Petronas, Telekom Malaysia Bhd (TM) and Tenaga Nasional Bhd (Tenaga) are expected to make a whopping profit of RM83.3bil, or a 44.1% increase as compared to earnings of RM57.8bil in 2005.

This is largely contributed by better performance with revenue targeted to reach RM287.4bil against an expenditure of RM204bil this year. Last year’s revenue was RM243.4bil against an expenditure of RM185.5bil.

The consolidated public sector is also expected to continue to record a higher current balance of RM105bil, an increase of 43.3% because of better revenue performance of NFPEs, especially Petronas.

Although the cost of doing business has risen by 10%, the NFPEs continue to perform well and remain resilient.

The NFPEs are also expected to increase their development expenditure by a further RM48.7bil or 41.7% to develop new capacity as well as to upgrade existing facilities.

Petronas, for example, has continued its efforts to prospect for more oil and gas reserves and has made significant discoveries in offshore Peninsular Malaysia and Sarawak.

Petronas also concluded long-term sale and purchase contracts with parties in Japan and China for the supply of liquefied natural gas.

In addition, Petronas also recently opened its first gas service station in Indonesia and a second liquefied petroleum gas facility in Vietnam.

Other significant projects by Petronas include a joint venture undertaken by its subsidiary AET Tanker Holdings which owns and operates Very Large Crude Carrier and other tankers to haul crude oil.

TM’s revenue is also expected to increase particularly in the mobile, Internet and multimedia segments.

The introduction of new TM products, such as iTalk with Mobile and new product packages in the broadband segment will help to mitigate declining fixed line sales.

As for Tenaga, the company’s earnings potential remain positive following the increase in electricity tariffs and increased demand.

Tenaga’s current expenditure is also expected to increase following the hike in fuel costs and additional generation capacity payments to two new Independent Power Producers.

One of Tenaga initiatives is to adopt a “preventive rather than reactive maintenance strategy” in order to reduce costs and minimise supply disruptions.

Other projects undertaken by Tenaga include the Ulu Terengganu Hydroelectric Scheme Development, Prai Power Station rehabilitation and upgrading of Manjung and Sepang power stations.

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