KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has estimated a recovery of about RM7bil from imbalance cost pass-through (ICPT) in the first half of the 2024 financial year, based on current fuel price trends.
The utility giant, in a statement, said the forward-looking perspective reflected TNB's proactive stance in managing its financial outlook and controlling fuel-related expenditures.
TNB president and chief executive officer Datuk Baharin Din said that the development significantly enhances TNB’s working capital, boosting its cash flow and improving gearing levels in 2023.
“TNB’s prudent capital management enables the company to reward the shareholders with an interim dividend of 18 sen, which accounts for 49.4% of the adjusted profit after tax after minority interest (Patami),” he said.
Improvement in ICPT receivables is underscored by the successful recovery of RM10.4bil in ICPT costs for the period of January to June 2023, TNB said.
It said this demonstrated the Government’s continued commitment to the incentive based regulation (IBR) framework and ICPT mechanism for the past 18 cycles since 2015.
“Moreover, the company is expected to recover RM4.7bil of ICPT costs from the Government in the second half of the year,” TNB said.
Baharin said despite challenges stemming from negative fuel margins and foreign exchange volatility, TNB reported a commendable performance in this demanding environment.
In the first half to June 30, TNB reported a net profit of RM1.2bil, while revenue rose 3.8% to RM25.95bil, compared to the corresponding period in 2022.