Tenaga posts RM2.11b earnings in Q1 FY18

According to the Energy Commission (EC), electricity demand growth has been declining due to structural changes in the economy and increases in the electricity tariff.

KUALA LUMPUR: Power giant Tenaga Nasional Bhd (TNB) posted earnings of RM2.11bil on the back of a turnover of RM12.27bil in the first quarter ended March 31, 2018.

It reported on Friday 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. 

TNB said the group earnings before interest, tax, depreciation and amortisation (Ebitda)  was RM4.22 billion 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, respectively, 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.