TNB's net profit rose to RM1 billion in the first quarter
BERNAMA
May 29, 2023
TNB's net profit rose to RM1 billion in the first quarter
Revenue increased 3.9 percent to RM12.63 billion from RM12.15 billion previously due to higher electricity sales. -Photo file/TNB
KUALA LUMPUR: Tenaga Nasional Bhd's (TNB) net profit jumped 12.2 percent to RM1 billion in the first quarter ending March 31, 2023 from RM893.10 million in the same quarter last year.
The increase was mostly due to lower tax provisions recognized in the quarter under review, as a result of the use of higher reinvestment allowance incentives, the utility company said in a notification to Bursa Malaysia today.
Meanwhile, revenue increased 3.9 percent to RM12.63 billion from RM12.15 billion previously due to higher electricity sales.
TNB said operating expenses increased by 7.5 per cent to RM14.44 billion from RM13.43 billion, mostly on the back of higher generation costs leading to a higher Imbalance in Route Costs (ICPT) under recognized recovery in the quarter.
However, there was a net reversal in the impairment of financial instruments amounting to RM48.7 million recognized in the current period due to an increase in collection flows.
"As a result, TNB recorded a lower operating profit of RM2.08 billion, a decrease of RM287.5 million from the previous period," he said.
On the outlook, TNB said it expects a reasonable performance for 2023 as selpeas enjoyed a better first quarter earnings from electricity demand growth of 0.8 percent and will continue to be cautious of upcoming challenges including high fuel prices and inflation.
"The group will continue to take prudent measures in terms of its operational and financial needs to ensure it remains resilient," he said.
