TNB Weathers Challenging 1H 2020 To Register RM1.4 Billion PAT

28/08/2020

Tenaga Nasional Berhad’s (TNB) group profit after tax (PAT) declined by 46.7 percent to RM1.41 billion in the First Half Financial Year 2020 (1HFY2020) from RM2.65 billion in the corresponding period last year. The lower PAT was largely due to the economic slowdown brought about by the COVID-19 pandemic and the implementation of the Movement Control Order (MCO), as well as volatile foreign exchange.

The Group’s revenue decreased 13.7 percent to RM22.55 billion from RM26.12 billion in the same period last year mainly due to the lower contribution from subsidiaries and Imbalance Cost Pass Through (ICPT) being in a rebate position of RM520 million compared with RM1.79 billion surcharge position in the previous year’s corresponding half.

Electricity sales for the six-month period was impacted by the closure of business premises during the MCO, moderating to 53,535.7 GWh compared with 58,521.1 GWh in the same period last year.

However, electricity demand is showing an uptrend with peak demand recorded at 17,484 MW in June, 17,724 MW in July, and 18,307 MW in August.

“The country is showing positive signs of economic recovery following the reopening of industrial and commercial sectors during the Recovery Movement Control Order (RMCO), which is also reflected by the upturn in electricity demand,” said TNB President and Chief Executive Officer, Datuk Seri Amir Hamzah Azizan. “We expect the positive trend to continue and stabilise in the second half of the year.”

EBITDA margin improved 4.9 percent year-on-year due to a 19.6 percent decrease in operating expenses in the first half of 2020 as the Group adapts to the prevailing operational requirement. 

Despite the challenging environment, TNB continues to honor its dividend policy, rewarding shareholders with a RM1.26 billion interim dividend payout which translates to dividend per share of 22.0 sen.

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