Tenaga Nasional Berhad (5347.KL)

Its sales grew about 15%, but its earnings dropped roughly a quarter.

What is going on right now?

The price is sitting just above where it was a few weeks ago, but still noticeably below where it averaged over the past several months. Trading activity has been very quiet lately.

How is the business itself doing?

This company runs Malaysia's national electricity grid and also generates power in the UK, Kuwait, Ireland, and Australia. More money is coming in from sales, yet the company is keeping less of it: for every ringgit earned, only about 7 sen stays as profit.

What stands out?

The company owes roughly 1.7 times what it owns outright, and it spent more cash than it brought in, to the tune of about 735 million. Meanwhile, reports suggest rising oil prices near $110 a barrel could push its fuel costs higher.

What comes next?

About two thirds of its earnings go out as dividends, so the next earnings report will show whether that shrinking profit can still cover those payments.