TNB Shows Resilient 1HFY22 Financial Performance

01/09/2022

Tenaga Nasional Berhad (TNB) reported a resilient First Half Financial Year 2022 (1HFY2022) financial performance on the back of higher electricity demand of 5.0% year-on-year in line with continued post-pandemic economic growth.

“Group revenue without cost recovery of the Imbalance Cost Pass-Through (ICPT) for the period increased by 4.4% to RM24.99 billion from RM23.93 billion,” said TNB President and Chief Executive Officer, Dato’ Indera Ir. Baharin Din to analysts today, following results announcement on Tuesday.

He attributed the higher revenue to the increase in TNB sales of electricity in all sectors, consistent with the overall improvement of Malaysia’s GDP of 6.9% year-on-year. 

"Overall, we recorded a higher Profit After Tax (3.9 %) of RM 905.6 million in second quarter 2022, compared to RM 871.2 million in the first quarter of 2022," added Baharin.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) were reported at RM10.58 billion while EBITDA margin (without ICPT cost recovery) has improved to 42.3% from 40.6% as compared to the same period last year, reflecting an improvement in TNB’s operational performance.

“Our financials reflect our solid technical performance as our network remains robust with a System Minutes of 0.01 and a SAIDI of 22.01 minutes, which is better than our internal performance thresholds,” added Baharin. 

Concerted Effort by the Government and TNB in Addressing the High Fuel Price

The recent announcement on a RM5.8 billion payment and a RM6 billion government guarantee loan facility showed a concerted effort by the Government and TNB in addressing the high fuel price situation.

Commenting on the substantial growth in receivables due to ICPT in 1HFY2022, Baharin said that the Group took proactive measures to manage working capital. “These include fulfilling our obligations to our suppliers and vendors through continuous cash flow monitoring and successfully raising additional borrowings when required.”

“We remained prudent in our working capital management and expect our credit rating to remain stable. We also improved our collection with an average collection rate of 98% for 1HFY2022 as compared to 92% last year.”

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