PETALING JAYA: Tenaga Nasional Bhd’s (TNB) net profit more than doubled to RM1.2 billion for the first quarter ended Sept 30, 2019 compared with RM501 million in the same quarter a year ago, due to lower operating expenses and fuel costs.
Revenue for the quarter, however, slipped 3.3% to RM12.64 billion from RM13.07 billion, on the back of regulatory adjustments.
For the nine-month period, TNB’s net profit was up marginally by 0.5% to RM3.88 billion from RM3.86 billion, while revenue grew 2.4% to RM38.76 billion from RM37.85 billion.
During the period, sales in electricity for the increased 4.2% to RM36.93 billion, from RM35.43 billion in 2018. In terms of gigawatt hours (GWh), electricity sales grew 3.4% to 92,832.4 GWh, in tandem with the 3.2% demand growth in Peninsular Malaysia.
TNB’s share of results of associates expanded further in the nine-month period, with a positive contribution of RM93.1 million compared with a loss of RM183.9 million previously. This share of associates reflects contribution from TNB’s investment portfolio, both locally and overseas.
The power utility told Bursa Malaysia that the return on regulated business under the Incentive Based Regulation framework, which consists mainly of transmission and distribution businesses, came in at RM2.39 billion.
TNB president and CEO Datuk Seri Amir Hamzah Azizan said the group’s UK portfolio performed better than anticipated while its investment in Turkey showed signs of recovery following the implementation of a turnaround plan.
TNB owns two renewable energy companies in the UK, namely Vortex Solar (50%) and Tenaga Wind Ventures (80%), as well as a 30% equity interest in GAMA Enerji in Turkey.
“TNB will leverage on its existing UK assets and market experience to build up a sizeable renewable energy portfolio by 2021 through acquisition of both brown and green field projects,” Amir Hamzah said.
Looking ahead, the group’s performance is expected to remain stable for the current financial year as economic growth is projected to be within projections in 2019. This is expected to be underpinned mainly by private sector activity, particularly household spending.
