TNB’s revenue lower in FY20, declares 18.0 sen final single tier dividend

KUALA LUMPUR: Tenaga Nasional Bhd’s (TNB) net profit fell to RM3.40 billion in the financial year ended Dec 31, 2020 (FY20), from RM4.53 billion in the same period a year earlier due to lower revenue and finance income.

The multinational electric company said the lower finance income resulted from lower interest rates and higher finance costs involving its newly commissioned plant, Tuanku Muhriz Power Station in Negeri Sembilan.

“This was offset by the tax credit on the reinvestment allowance incentive claimed by TNB based on the Finance Act 2020 gazetted by the government on Dec 31, 2020,” it said in a Bursa Malaysia filing yesterday.

Its FY20 revenue declined to RM43.98 billion from RM50.94 billion year-on-year, largely contributed by the customer of commercial and industrial segments, which were affected by the Covid-19 outbreak.

“Included in this lower sales of electricity is the Imbalance Cost Pass-Through, which was in an over-recovery position of RM3,034.5 million as compared to an under-recovery position of RM1,917.9 million during the last corresponding period,” it added.

The group recorded strong earnings in the fourth quarter of 2020 (4Q20) with net profit jumping to RM1.21 billion from RM653.30 million on the back of lower revenue at RM10.32 billion from last year’s RM12.18 billion.

TNB said higher net profit for the quarter was mainly due to higher tax credit resulting from its claim of the reinvestment allowance incentive, while revenue for the quarter was mainly affected by lower generation cost.

“This resulted in higher operating profit of RM1,455.0 million, an increase of RM105.2 million or 7.8 per cent,” it said.

TNB’s board of directors has approved a final single tier dividend of 18.0 sen per ordinary share and a special single tier dividend of 40.0 sen per ordinary share for FY20 totalling approximately RM3,308.7 million based on 5.70 million paid-up share capital.

“The books closure and payment dates will be announced in due course,” it said.