However, the first quarter also saw the group continuing to face challenges arising from the global increase in coal price and increase in customer’s credit risk.(File pic shows unloading coal at Tanjung Bruas.)
PETALING JAYA: Tenaga Nasional Bhd
(TNB) remains cautious on the prolonged increase in coal price and impact from increased customers’ credit risk outlook, although it foresees a reasonable performance for the year 2022 with the implementation of the Regulatory Period 3, effective from Feb 1.
In a filing with Bursa Malaysia, the group said for its first quarter ended March 31, 2022 (1Q22), it saw resilient performance underpinned by electricity demand growth of 4%, consistent with the overall improvement of Malaysia’s gross domestic product of 5% year-on-year.
However, the first quarter also saw the group continuing to face challenges arising from the global increase in coal price and increase in customer’s credit risk.
“On-going risks to growth remain, in particular on the expectation of higher core inflation arising from global commodity price surge amid heighten geopolitical conflicts and the on-going Russia Ukraine conflict could have an impact on the country’s economic growth,” said TNB.
For 1Q22, the group’s revenue grew 36.4% year-on-year to RM15.658bil while net profit dropped 6.84% year-on-year to RM893.1mil.
Earnings per share was 15.6 sen (versus 16.81 sen a year earlier).
TNB said the jump in 1Q22 revenue was mainly due to the under-recovery position of imbalance cost pass-through (ICPT) of RM3.5bil, compared an over-recovery position of RM327.3mil a year earlier.
For 1Q22, operating expenses rose by 46.9% to RM13.43bil mainly due to higher fuel price which was passed through the ICPT.
However, the operating profit saw a slight increase of RM41.8mil or 1.8% due to lower net loss on impairment of financial instruments. Profit after taxation was lower by 10.5% or RM102.3mil, mainly due to higher tax expenses.
