Power utility TNB expects resilient earnings

Kenanga Research said it continues to like TNB for its resilient earnings profile, safeguarded by the ICPT mechanism.

KUALA LUMPUR: Tenaga Nasional Bhd’s (TNB) earnings are expected to be resilient going forward, as the ballooning under-recovery of fuel costs will eventually be recovered under the incentive-based regulatory framework, albeit with a six-month lag.

According to Kenanga Research, TNB has received RM4bil in imbalance cost pass-through (ICPT) recovery claims for January 2023, with a balance of RM6.4bil to be paid in five equal instalments until June 2023.