Tenaga Nasional

2023 - 2 - 28

Tenaga Nasional Posted Weaker 2022 Profit -- Earnings Review (MarketWatch)

By Ying Xian Wong Tenaga Nasional Bhd. reported its fourth-quarter and full-year results on Monday. Here is what you need to know: NET PROFIT : The ...

Quarterly operating expenses increased 25% from a year earlier to MYR18.10 billion. Quarterly revenue rose 3.1% from a year earlier, thanks to higher electricity sales, the company said. For 2022, its finance cost climbed 15% to MYR4.34 billion. Fourth-quarter net profit was 7.8% lower from a year earlier at MYR809.1 million. --FINANCE COST: Tenaga's finance cost for the quarter rose to MYR1.14 billion from MYR961.7 million a year earlier. NET PROFIT : The Malaysian electric utility posted net profit of 3.46 billion ringgit ($780.1 million) for 2022, below the MYR4.37 billion median forecast of analysts polled by FactSet.

Post cover — Image courtesy of "The Star Online"

TNB posts RM3.4bil net profit for FY22, declares 26 sen dividend (The Star Online)

PETALING JAYA: Tenaga Nasional Bhd (TNB) foresees a reasonable performance for 2023 and will continue to remain cautious on the challenges ahead, ...

Additionally, TNB said ICPT was in a higher under-recovery position of RM22.32bil as compared to RM4.51bil a year earlier, due to the higher fuel price. “These have resulted in a higher operating profit of RM9.41bil, an increase of RM1.33bil or 16.4% from the last corresponding year.” Despite the higher operating profit, TNB said profit after tax for the year under review decreased by 8% or RM307.3mil. “The increase in the units sold for TNB was largely contributed by customers from the commercial and industrial sectors.” TNB said revenue was boosted by the higher sales of electricity of RM2.65bil, up by 5.6% against the corresponding year with demand growth of 5.2%. “This was mainly contributed by the higher finance cost and tax expenses which includes additional tax on Cukai Makmur for financial year 2022, amounting to RM340.8mil,” said TNB. Revenue in the fourth quarter improved to RM12.92bil from RM12.53bil previously, mainly due to the higher sales of electricity. “The resultant operating profit decreased from RM1.57bil to RM1.5bil, lower by RM73mil,” said TNB. “Operating expenses increased by 24.9% or RM3.6bil, mainly due to higher generation cost offset by an increase in imbalance cost pass-through (ICPT) under recovery of RM3.19bil. In FY22, TNB’s net profit dipped to RM3.46bil from RM3.66bil in the previous corresponding period. For its fourth quarter ended Dec 31, 2022, TNB’s net profit dropped to RM809.10mil from RM877.80mil, mainly due to higher finance cost and tax expenses offset by the higher foreign currency translation gain during the period. As the group pursues its growth strategy, TNB said in a Bursa Malaysia filing that it will continue to take prudent measures in terms of its operational and financial requirements to ensure it remains resilient.

Analysts see TNB's receivables at peak, recommend 'buy' on ... (The Edge Markets MY)

Analysts believe Tenaga Nasional Bhd's (TNB) receivables should have marked a peak, as coal price have trended down, and see improving cash flow putting the ...

As such, we expect previous constraints on TNB's cash flow to be gradually alleviated,” the research outfit said. “We anticipate improvements in regulated capital expenditure roll-outs, which will re-accelerate the expansion of TNB’s regulated asset base, hence improving regulated earnings recognition. The remaining portion will be paid in five equal instalments. In the last two months, TNB’s share price has fallen 2.03% to RM9.46. The management is also guiding for ICPT of RM12 billion for 2H2023, based on current fuel price trends,” HLIB said. Hong Leong Investment Bank (HLIB) in a note on Tuesday maintained its “buy” call on TNB, with a TP of RM11.65, and said the receivables increased due to timing mismatch of imbalance cost pass-through (ICPT) recognition and recovery.

TNB's dividend surprise despite profit dipping 10% (Free Malaysia Today)

PETALING JAYA: Tenaga Nasional Bhd (TNB) posted a net profit of RM809.1 million for the fourth quarter ended Dec 31, 2022 (Q4 FY2022), a 10.1% decline from ...

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TNB posts RM809m net profit in 4Q, declares 26 sen... (The Malaysian Reserve)

TENAGA Nasional Bhd's (TNB) fourth quarter ended Dec 31, 2022 (4Q22), fell 7.82% to RM809.1 million from RM877.8 million, mainly due to higher finance cost ...

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Power utility TNB expects resilient earnings (The Star Online)

Tenaga Nasional Bhd's (TNB) earnings are expected to be resilient going forward, as the ballooning under-recovery of fuel costs will eventually be recovered ...

Maybank IB Research maintained its “hold” call on TNB’s stock with an unchanged RM10 target price (DCF-based). The research unit said TNB’s 4Q22 results were in line with its forecasts, as the group posted sequentially lower net profit due to the seasonal back-loading of general expenses. “The average coal cost was up marginally quarter-on-quarter, thus TNB’s under-recoveries remained elevated at RM6.4bil (from RM6.1bil in 3Q22),” said Maybank IB Research. The research unit noted that TNB’s core profit in the financial year ended Dec 31, 2022 (FY22) had declined 20% despite a 6% increase in turnover (led by commercial of more than 16%) due to an 89% surge in fuel costs. TNB’s target price was also cut to RM10 (from RM10.17), based on a 5% discount due to its two-star environmental, social and governance (ESG) rating and the research unit’s discounted cash flow (DCF) derived valuation of RM10.52. However, Kenanga Research cut its call on TNB’s stock to “market perform” from “outperform” given its recent solid share price performance (14% jump in the past three months).

TNB's receivables remain elevated at RM22.83 bil, 4Q net profit falls ... (The Edge Markets MY)

Tenaga Nasional Bhd (TNB)'s net profit dropped 7.83% year-on-year (y-o-y) to RM809.1 million in the fourth quarter ended Dec 31, 2022 (4QFY2022) from ...

On a y-o-y basis, TNB's receivables more than doubled from RM10.55 billion in 4QFY2021. TNB explained that the continued high fuel prices in the second half of 2022 has resulted in TNB carrying higher receivables and borrowings balances. In terms of borrowings, TNB recorded a higher sum of RM63.88 billion — comprising short-term borrowings of RM13.26 billion and long-term borrowings of RM50.62 billion — 23.62% higher than RM51.68 billion posted in 4QFY2021. The latest dividend brings the total dividend for FY2022 to 46 sen per share, 15% higher than the 40 sen per share declared in FY2021. Its net profit was dragged by higher finance cost and tax expenses, but was offset by the higher foreign currency translation gain in the current quarter. The board has declared a final single-tier dividend of 26 sen per share, with the payment date to be announced in due course.