TNB Q3 Revenue Contracts By 6.7%

Tenaga Nasional Berhad is showing positive performance in tandem with the economic recovery, the energy group recorded a 9.6% year-on-year revenue growth to RM36.9 billion from RM33.7 billion in 2020 for the 9 months ended.

The increase was attributed to a slightly higher group sales of electricity which grew by 1.1% to 87,950 GWh in the same period, with the group recording profit of RM2.9 billion. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) was reported at RM14.4 billion (up 4.6%). Overall, EBITDA margin was sustained at 39.0%, moderated by higher expenses which grew by 8.7% from increased business activities.

“We recorded another period of resilient performance mainly on the back of improved economic activities. However, we saw a contraction of 6.7% of our third quarter electricity sales compared with the previous quarter, an effect of the shifting dynamics caused by the ongoing pandemic, and we continue to brace ourselves for prevailing uncertainties ahead,” said TNB President/Chief Executive Officer, Datuk Ir. Baharin Din Comparing the Group’s performance pre-COVID-19, he said,

On a positive note, he said the increase in demand is expected to improve in the coming months and into next year as more economic activities open for business. “TNB also continues to work with the government on multiple fronts to support the nation’s economic recovery. These include multiplier effect initiatives through our ongoing scholarship programmes, vendor development programmes as well as an intensive reskilling programme to train and place workers in jobs.”

On its outlook, for the first nine months of FY 2021, the Group’s performance improved compared with the same period last financial year despite the continued challenges faced during the Covid-19 pandemic. Demand has started to show improvements, growing at 0.6% against a contraction of 6.2% in the same period last financial year. This is in line with the increase in the country’s Gross Domestic Product (GDP) of 3% in the first nine months of 2021.

Going forward, the country is on track to achieve GDP growth of between 3% and 4% in 2021. Growth will be supported by the increase in economic activities as containment measures are progressively relaxed, amid continued policy support. Hence, the Group believes that the improvement in the overall economy will result in higher electricity demand and support the positive momentum seen across the Group’s operation.

Amid the encouraging developments, the Group foresees a stable performance for the remaining quarter of the financial year. Nonetheless, the Group will continue to take prudent measures in terms of its operational and financial requirements to ensure it remains resilient.

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