TNB POSTS LOWER FY2022 EARNINGS AMID HIGHER FINANCE COSTS, TAXES

KUALA LUMPUR, Feb 27 (Bernama) -- Tenaga Nasional Bhd’s (TNB) net profit eased 5.4 per cent to RM3.46 billion in the financial year ended Dec 31, 2022 (FY2022) from RM3.66 billion in the preceding year.

The electric utility said despite the 16.5 per cent higher operating profit, earnings were lower due mainly to higher finance costs and tax expenses, including an additional tax in the form of Prosperity Tax totalling RM340.8 million for the year. 

Revenue for FY2022, however, rose to RM50.87 billion from RM48.12 billion, mainly due to 5.6 per cent higher electricity sales of RM2.65 billion amid demand growth of 5.2 per cent, TNB said in a filing with Bursa Malaysia today. 

TNB said the Imbalance Cost Pass-Through (ICPT) was in a higher under-recovery position of RM22.32 billion from RM4.51 billion in the previous corresponding year mainly due to higher fuel prices. 

It noted that its operating expenses increased to RM64.61 billion from RM44.52 billion, up 45.1 per cent, mainly due to higher generation costs.

Meanwhile, the net loss on impairment of financial instruments decreased by RM838.8 million or 89.2 per cent as the collection trend improved in the current year. 

“These have resulted in a higher operating profit of RM9.41 billion, an increase of RM1.33 billion, or 16.4 per cent from the last corresponding year,” added TNB.    

For FY2022, TNB’s board of directors has approved a final single-tier dividend of 26.0 sen per ordinary share, totalling approximately RM1.495 billion.

Moving forward, TNB said the group foresees a reasonable performance for 2023 and will continue to remain cautious on the challenges ahead including high fuel prices and inflation. 

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

-- BERNAMA