TNB 1Q net profit slips 7% on higher tax expenses

KUALA LUMPUR (May 30): Tenaga Nasional Bhd’s first quarter net profit slipped 6.84% to RM893.1 million from RM958.7 million a year earlier on higher tax expenses.

TNB said the higher tax expense was due to an increase in deferred tax expense of RM191.8 million and a reduction in current tax expense of RM34.8 million which was due to a lower taxable income, despite an additional tax on Cukai Makmur amounting to RM113.5 million.

Earnings per share for the first quarter ended March 31, 2022 fell to 15.6 sen from 16.81 sen previously, TNB’s bourse filing showed.

Revenue grew 36.42% to RM15.66 billion from RM11.48 billion, mainly due to the under-recovery position of Imbalance Cost Pass-Through (ICPT) of RM3.5 billion, as compared to the previous corresponding period which was in an over-recovery position of RM327.3 million.

Operating expenses rose 46.9% to RM13.43 billion from RM9.15 billion mainly due to higher fuel price which was passed through the ICPT. However, the operating profit recorded a slight increase of RM41.8 million or 1.8% due to lower net loss on impairment of financial instruments.

TNB said its resilient first quarter performance was underpinned by electricity demand growth of 4%, consistent with the overall improvement of the country’s gross domestic product of 5%.

“The group foresees a reasonable performance for the year 2022 with the implementation of Regulatory Period 3 (RP3) effective from Feb 1. However, the group remains cautious on the prolonged increase in coal price and impact from increased customer’s credit risk outlook.

“The group will continue to take prudent measures in terms of its operational and financial requirements to ensure it remains resilient,” it added.

TNB’s share price finished unchanged at RM9.25, bringing a market capitalisation of RM52.97 billion.