KUALA LUMPUR, Aug 26 — Tenaga Nasional Bhd’s (TNB) second quarter net profit advanced 25.7 per cent to RM821.5 million from RM653.3 million a year ago on higher operating profit despite a bigger net loss on impairment of financial instruments recognised in the current quarter.
Revenue for the quarter ended June 30, 2021, jumped 14.2 per cent to RM12.44 billion due to higher electricity consumption from commercial and industrial customers as certain businesses were allowed to operate unlike the full economic closure in the last corresponding period.
Consequently, the operating profit also increased to RM2.12 billion from RM1.82 billion, the utility company said in a filing to the stock exchange today.
Net profit for the first half-year rose to RM1.78 billion from RM1.37 billion, while revenue stood at RM23.91 billion versus RM22.54 billion a year ago, it said.
TNB said the growth was mainly driven by the improvement in domestic demand and continued robust exports performance. “This is consistent with the demand growth recorded by TNB of 4.4 per cent for the first half of the year where recovery was registered in the industrial sector.”
However, towards the end of the second quarter there was a slowdown in the economy due to the re-imposition of stricter containment measures nationwide as Covid-19 cases surged.
Bank Negara Malaysia has revised the economic growth projection to be between 3 and 4 per cent for 2021 from 6 to 7.5 per cent as previously projected.
“Amid the developments surrounding the pandemic, the group will continue to take prudent measures in terms of its operational and financial requirements to ensure it remains resilient,” it said.
TNB also announced a RM1.26 billion interim dividend or 22.0 sen per share.
In a separate statement, the company also announced its sustainability pathway with an aspiration to achieve net zero emissions by 2050 in a bold move towards decarbonisation and renewable energy (RE).
“This new pathway is a clearer manifestation of TNB’s sustainability journey which began in 2016 with the launch of the Reimagining TNB strategic plan. Today’s commitment providesfurther clarity towards TNB’s sustainability path over the next 30 years,” said TNB president and chief executive officer Datuk Baharin Din.
Under its sustainability pathway, TNB aspires to achieve net zero emissions by 2050. This aspiration is underpinned by a commitment to reduce 35 per cent of its emissions intensity as well as 50 per cent of its coal generation capacity by 2035.
In addition, TNB has pledged to ensure its revenue from coal generation plants does not exceed 25 per cent of its total revenue. The company had earlier this year committed to no longer investing in greenfield coal plants after Jimah East Power which was commissioned in 2019, while existing plants will be phased out on expiry of their power purchase agreement (PPA).
“Leading up to the 2035 commitment, we will continue to improve efficiency at our existing thermal plants, and build up scale in our renewable generation portfolio. Our target is to achieve 8,300MW of RE by 2025,” added Baharin.
“We believe that an inflection point between 2035 and 2040 will determine the speed of our net zero trajectory. Hence, building up towards that point, TNB is dedicated to develop energy storage solutions and is already in discussions with the government to implement this as an enabler for RE growth. TNB is also committed to accelerate investments in emerging green technologies like green hydrogen, and carbon capture and utilisation (CCU) — as soon as it becomes economically viable,” he said.
TNB remains committed to the government’s green agenda and Malaysia’s commitment to reduce greenhouse gas (GHG) emission intensity of gross domestic product (GDP) by 45 per cent by 2030, relative to the 2005 baseline. — Bernama
