Tenaga Nasional Bhd (TNB) is cautiously optimistic over prospects for the 2013 financial year.

Its Chairman Tan Sri Leo Moggie said the availability of gas supply has become a major concern for the group, following the revised commissioning date of the Liquefied Natural Gas (LNG) regasification terminal in Malacca.

"We are quite positive in terms of demand but cautiously optimistic on outlook as the prevailing operating environment has yet to indicate any sustained improvement," he told reporters after announcing the results for the first quarter of financial year ending Aug 31, 2013 here Wednesday.

Moggie said the group had recorded a net profit attributable to shareholders of RM1.415 billion for the first quarter.

The positive result is principally attributed to lower generation costs and foreign exchange translation gain.

He said the group's operating costs for the first quarter 2013 had decreased 9.6 per cent to RM8.598 billion, compared to the RM7.465 billion recorded in the corresponding period of last year.

"This was mainly attributed to the recognition of fuel cost compensation in first quarter financial year 2013 and lower generation costs in line with the declining global coal market price," he added.

He said although TNB had enjoyed the benefits of lower coal prices, it had to be vigilant on the impact of the continued use of alternative fuels, on its operating expenses.

During the current quarter, the average coal price was recorded at US$84.4 per metric tonne, as compared to the US$110.0 per metric tonned recorded in the corresponding period of 2012.

This coupled with the strengthening of the ringgit against the US dollar during the quarter, further enhanced the savings in generation costs, for the financial year 2013 first quarter.

Despite the increase in generation from gas-fired and coal-fired power plants of 8.9 per cent and 1.4 per cent respectively during first quarter compared to the last corresponding quarter, the usage of alternative fuel has remained constant to meet the 3.5 per cent increase in unit electricity growth in Peninsular Malaysia.

TNB's President and Chief Executive Officer Datuk Wira Ir Azman Mohd said the 3.5 per cent electricity growth was driven principally by the commercial and domestic sectors that recorded demand growth of five per cent and 6.1 per cent respectively.

"This is in line with Bank Negara's forecast that domestic demand will continue to support economic growth through private consumption resulting from income growth and stable employment conditions," he added.

He said to make up for the shortfall in gas and meet rising demand, usage of alternative fuels will have to continue, resulting in higher generating costs.

"Additionally, continuous usage of distillate will have an adverse impact on the performance and life span of the power plants," Azman added.