Loses In Forex And Tax Expenses Impacts TNB Profit, Drops 4.3% To RM2.75 Billion

Tenaga Nasional Berhad reported a fair financial performance in the nine months of its 2022 Financial Year it said this was supported by higher Group electricity demand of 7.2% year-on-year, in line with Malaysia’s economic growth. 

Group revenue without cost recovery of the Imbalance Cost Pass-Through (ICPT) for the period increased by 6.6% to RM37.95 billion from RM35.59 billion, attributed to the increase in TNB sales of electricity in all sectors. 

TNB President and Chief Executive Officer, Dato’ Indera Ir. Baharin Din said the under-recovery of ICPT for the 9MFY2022 has surged to RM15.92 billion from RM1.30 billion in the same period last year due to the current high fuel price environment.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) were reported higher at RM16.31 billion as compared to RM14.39 billion in the same period last year. EBITDA margin (without ICPT cost recovery) improved to 43.0% from 40.4% last year, reflecting an improvement in TNB’s operational performance.

However, the profit after taxation (PAT) for the period under review dropped by 4.3% to RM2.75 billion from RM2.87 billion in the same period last year. This was mainly contributed by the higher foreign currency translation losses, finance cost, and tax expenses which include Cukai Makmur for FY2022.

The ICPT is a six-month pass-through mechanism of variations in uncontrollable fuel cost and other electricity generation-specific costs incurred by the utility for the preceding six-month period.

For the ICPT recovery period from July to December 2022, the Government has agreed to reimburse TNB the ICPT cost amounting to RM5.8 billion. “We are pleased to share that we have received to date a total of RM4.8 billion ICPT cost recovery for July to November 2022 claims from the Government,” said Baharin.

Taking into consideration the challenging business environment, the Group anticipates a reasonable performance for the year 2022. Nevertheless, the Group remains cautious and has taken prudent measures in terms of its operational and financial requirements to ensure it remains resilient. 

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