KUALA LUMPUR – Tenaga Nasional Bhd’s (TNB) net profit surged 12.2% to RM1 billion in the first quarter (Q1) ended March 31, 2023, from RM893.10 million in the same quarter last year.
This increase was primarily attributed to lower tax provisions recognised in the quarter under review, resulting from the higher utilisation of the reinvestment allowance incentive, the utility giant said in a filing with Bursa Malaysia today.
Revenue, meanwhile, rose by 3.9% to RM12.63 billion from RM12.15 billion previously due mainly to higher sales of electricity.
TNB said operating expenses grew by 7.5% to RM14.44 billion from RM13.43 billion, mainly due to higher generation costs, which led to a higher Imbalance Cost Pass-Through under recovery recognised in the quarter.
However, there was a net reversal in impairment of financial instruments amounting to RM48.7 million recognised in the current period, due to an improvement in the collection trend.
“As a result, TNB recorded a lower operating profit of RM2.08 billion, reduced by RM287.5 million from the last corresponding period,” it said.
On prospects, TNB said it expected a reasonable performance for the year 2023, having enjoyed improved Q1 earnings from electricity demand growth of 0.8%, and would continue to remain cautious about the challenges ahead including high fuel prices and inflation.
“The group will continue to take prudent measures in terms of its operational and financial requirements to ensure it remains resilient,” it added. – Bernama, May 29, 2023
