TNB upbeat on FY22 performance

Utilits giant’p 2Q ton line jrmnp 53.8%

PETALING JAYA: While remaining cautious on the prolonged impact of high fuel prices and customer’s credit risk outlook, Tenaga Nasional Bhd (TNB) foresees a reasonable performance for its financial year 2022 (FY22).

Nevertheless, utility giant TNB said the growth outlook continues to face challenges mainly from the tightening of US monetary policy, worsening supply chain disruptions weighed by further increases in global commodity prices and stronger inflation pressure, which could dampen household spending and investment activities.

The group reported a resilient performance in the first half of FY22 (1H22), supported by higher electricity growth of 5% year-onyear (y-o-y).

This is consistent with the overall performance of the economy, which grew 6.9% in the same period, according to the group.

For the second quarter of FY22 (2Q22), TNB’S top line rose 53.8% y-o-y to Rm19.14bil, mainly due to the higher under-recovery position of the imbalance cost pass-through (ICPT) of Rm6.3bil as compared to the Rm314.6mil of the previous corresponding period.

This brings group revenue for 1H22 to Rm34.8bil, which was a 45.5% y-o-y growth.

The growth in revenue for 1H22 was mainly due to the under-recovery position of the ICPT of Rm9.81bil as compared to the previous corresponding period which was in an over-recovery position of Rm12.7mil.

Meanwhile, the group’s bottom line for 2Q22 saw a slight improvement, recording a net profit of Rm872.2mil compared with Rm821.5mil in 2Q21.

This translates to an earnings per share (EPS) of 15.23 sen for 2Q22, bringing the EPS for 1H22 to 30.83 sen.

Commenting on dividends, TNB said the board of directors has approved an interim single-tier dividend of 20 sen per share, amounting to Rm1.15bil.

TNB’S operating profit rose 23.8% y-o-y to Rm2.63bil, mainly due to a lower net loss on financial instruments of Rm442.7mil in 2Q22.

Meanwhile, its profit after tax (PAT) for the quarter under review increased by Rm55.6mil to Rm905.6mil compared with its previous comparative quarter.

The PAT of Rm905.6mil in 2Q22 was higher than the PAT of Rm871.2mil in 1Q22, mainly due to higher revenue from the sale of electricity and lower tax expenses despite recognising a higher foreign currency translation loss.

“This was due to the higher operating profit mentioned above, offset by the significant increment in foreign currency translation loss and higher tax expenses,” TNB said in a statement.

For 1H22, the group’s net profit decreased marginally to Rm1.77bil from Rm1.78bil in 1H21.

This was mainly contributed by the higher tax expenses inclusive of the additional tax of the Cukai Makmur for FY22 amounting to Rm257.3mil, according to the group.

“The board of directors has approved an interim single-tier dividend of 20 sen per share, amounting to Rm1.15bil.” tenaga napional Bhd