KUALA LUMPUR (Bernama) -- Tenaga Nasional Bhd (TNB) posted a higher net profit of RM958.7mil in the first quarter ended March 31, 2021 (Q1 2021) from RM717.9mil a year ago.
In a filing with Bursa Malaysia today, TNB said the increased net profit was due to a significant reduction in foreign currency translation loss of RM331.2mil and an increase in accounting gain on the fair value of financial instruments amounting to RM135.3mil.
It added that the improved performance was also attributed to a higher tax expense of RM224.1mil and an effective tax rate of 34.1% for the quarter under review.
For Q1 2021, TNB recorded a slightly lower revenue of RM11.48bil from RM11.65bil year-on-year mainly due to a reduction in electricity sales.
The utility giant’s operating expenses reduced to RM9.15bil from RM9.54bil due to lower generation costs.
This resulted in a higher operating profit of RM2.33bil, an increase of RM104mil or 4.7%, from the previous corresponding period.
As for the regulated business, TNB maintained an approved return under the incentive-based regulation (IBR) framework of RM1.28bil.
Moving forward, TNB said despite the recent re-imposition of containment measures, the impact on growth was expected to be less severe than in 2020, as more economic sectors are allowed to operate.
"With the continued policy support, the Malaysian economy remains on track for recovery in 2021.
"As projected by Bank Negara Malaysia, the economy is expected to rebound between 6.0 per cent and 7.5 per cent,” it added.
Amid the developments surrounding the pandemic, the utility group expects a prospect of gradual recovery in its performance this year, underpinned by the economic recovery in Malaysia and other countries globally.
"The group has taken prudent measures in terms of operational and financial requirements to ensure it remains resilient,” said TNB.