KUALA LUMPUR, Aug 30 — Tenaga Nasional Bhd’s (TNB) net profit eased to RM1.11 billion in the second quarter this year (Q2 2019) from RM1.23 billion in Q2 2018, while revenue increased to RM12.87 billion from RM12.49 billion previously.
For the first half of 2019 (H1 2019), the utility company’s net profit declined 20.3 per cent year-on-year (y-o-y) to RM2.67 billion from RM3.35 billion previously.
Meanwhile, revenue rose 5.4 per cent y-o-y to RM26.12 billion from RM24.77 billion previously, it said in a filing with Bursa Malaysia today.
In a separate statement, TNB attributed the decline in net profit to the adoption of the Malaysian Financial Reporting Standards (MFRS) 16 — Leases, effective January 2019, as well as other regulatory adjustments and higher finance costs.
“This has negatively impacted the group’s H1 2019 net profit by RM112.2 million. This is a non-cash adjustment to the group,” it said.
TNB added that operating expenses increased by 6.3 per cent in H1 2019, mainly due to higher generation costs in line with the rise in gas prices and consumption.
Meanwhile, its domestic and international investments portfolio showed a positive contribution of RM70 million against a loss of RM92.9 million in the corresponding period last year.
“We are beginning to see progress from the turnaround efforts after five challenging quarters in the international division, and this augurs well for TNB as we continue to drive transformation efforts ahead of the pending industry reforms to the Malaysian Electricity Supply Industry (MESI).
“In tandem with transformation initiatives to better manage our core businesses, we are focusing on ensuring that TNB’s international portfolio continues to add value to the group,” said president and chief executive officer Amir Hamzah Azizan.
Domestically, he said that TNB would continue to work closely with the government to facilitate a gradual and managed change through the MESI 2.0 framework, taking into consideration key interests of all stakeholders, particularly the consumers.
“The group remains committed to creating long-term value for TNB shareholders by consistently delivering optimum dividends for each financial year.
“Given the stronger Gross Domestic Product growth in Q2 and the expectation of a steady growth in the country’s economy, the group’s performance is expected to remain stable for the rest of FY2019,” he added. — Bernama