TNB posts RM2.11bil net profit in quarter one

PETALING JAYA: Power giant Tenaga Nasional Bhd (TNB) posted a net profit of RM2.11bil on the back of a revenue of RM12.27bil in the first quarter ended March 31, 2018.

The utility giant said there was a foreign exchange translation gain of RM89mil. Earnings per share were 37.41 sen.

TNB said due to the change in the financial year, the performance was not comparable against any comparative period previously reported.

“The return for regulated business under the Incentive Based Regulation (IBR) framework that mainly consist of transmission and distribution businesses contributed to 45.9% of the group’s profit after tax,” it said in a filing with Bursa Malaysia.

The company said the group earnings before interest, tax, depreciation and amortisation (EBITDA) was RM4.22bil while EBITDA margin at 34.4%.

Its president and chief executive officer Datuk Seri Azman Mohd said the electricity tariff rate of 21.8 sen/kWh (0-200 kWh) and 33.4 sen/kWh (201-300 kWh), have remained constant since 1997 and 2009, while maintaining world class standard of performance.

“Around 64% of our domestic customers are currently enjoying these low tariff rates, by consuming less than 300kWh or equivalent to RM77 of electricity per month,” he said.

He pointed out the implementation of IBR since 2014 had ensured transparency in terms of tariff setting and the input costs that are associated with the generation of electricity.

“The framework also promotes efficiency gains and financial sustainability of the industry which is essential in ensuring the reliability and security of electricity supply to the nation,” he said.

TNB shares closed 28 sen higher to RM15.04, giving the stock a market cap of RM85.4bil.