KUALA LUMPUR (May 29): Tenaga Nasional Bhd’s (TNB) net profit for the first quarter ended March 31, 2023 (1QFY2023) grew 12.23% to RM1.002 billion from RM893.1 million a year ago, as higher revenue and lower taxes helped offset the higher operating and finance costs incurred.

The group’s receivables continued falling. It saw a decrease of RM3.17 billion or 13.8% in receivables, deposits and prepayments to RM19.66 billion, compared with RM22.83 billion the year before.

Despite a weaker operating profit against the comparable period, it was the strongest earnings by the utility giant since 3QFY2021, when it booked a net profit of RM1.004 billion.

The strong set of financial results came after the imposition of a higher tariff surcharge on certain non-domestic consumers in the first half of 2023 (1H2023) to recoup the additional generation costs incurred in 2H2022.

Earnings per share expanded to 17.42 sen, from 15.6 sen for 1QFY2022.

Quarterly revenue was up barely 3.89% to RM12.63 billion from RM12.15 billion, on higher sales of electricity with demand growth of 0.8%, TNB said.

The utility firm recorded RM171.8 million in taxes and zakat this year, down sharply from RM660.8 million in 1QFY2022, resulting from higher utilisation of reinvestment allowance incentives. It is noted that Malaysia also imposed the one-tax prosperity tax known as Cukai Makmur last year.

Operating profit fell 12% to RM2.08 billion, from RM2.37 billion previously, as operating expenses increased 7.53% to RM14.44 billion from RM13.43 billion, attributed to higher generation costs in the latest quarter, compared to a year ago.

The utility group incurred higher finance costs, up 11.63% to RM1.12 billion from RM1 billion, it showed in a filing.

“The group foresees a reasonable performance for the year 2023, and will continue to remain cautious about the challenges ahead, including high fuel prices and inflation,” TNB said.

Shares in TNB, which have risen by 9.55% in the past month, settled up six sen at RM9.75 on Monday (May 29), giving the group a market capitalisation of RM56.09 billion. The utility stock has climbed 30% from RM7.50 in July last year.

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