For the first half of this year (1HFY23), Tenaga Nasional Berhad saw its revenue inching higher to RM25.9 billion versus RM24.9 billion it achieved in 2022. As for EBITDA the group achieved an impressive RM9.5 billion however it was lower than what it registered in 2022 of RM10.5 billion.
TNB said the higher group revenue was driven by sales demand growth of 2.0% including the sales of electricity of CEI UK Ltd(acquired in April 2022). The reduction in operating expenses was mainly due to lower generation costs including lower allowance for doubtful debts (ADD) of RM31.5 mil (1HFY22ADD of RM75.4 mil). The higher translation loss due to the weakening of MYR against USD is attributed to the outstanding USD-denominated loans.
As for the higher finance costs the group administered was due to interest on higher borrowings, mainly for working capital to fund higher fuel costs. TNB said the lower tax expense in 1HFY23 was due to a higher reinvestment allowance (RA)claim (vs one-off Prosperity Tax impact in 1HFY22). Deferred tax movement resulted from a decrease in capital allowances and an increase in accrued revenue.
For the 2QFY23, the utility giant saw its revenue increase 5.5% to RM13.3 billion, EBITDA was lower at RM4.66 billion while EBIT was also lower at RM1.86 billion down 10%.
The higher revenue was mainly due to a higher group’s sales of electricity while lower the ICPT surcharge was due to lower coal prices. The group added the translation loss in 2QFY23 was due to the weakening of MYR against USD, and the higher tax expense in 2QFY23 was due to higher forex loss and interest restriction in the quarter.
