KUALA LUMPUR (May 27): Tenaga Nasional Bhd's (TNB) net profit rose 33.54% to RM958.70 million for the first quarter ended March 31, 2021 (1QFY21) from RM717.90 million a year earlier, fuelled by significant reductions in foreign currency translation loss and an increase in accounting gain on fair value of financial instruments.

Earnings per share increased to 16.81 sen from 12.62 sen, the utility group's Bursa Malaysia filing showed.

Quarterly revenue, however, declined slightly by 1.51% to RM11.48 billion from RM11.65 billion, mainly due to a reduction in electricity sales.

“Operating expenses reduced by 4.2% to RM9.15 billion from RM9.54 billion, mainly due to lower generation costs.

“As for the regulated business, the company is able to maintain the approved return on the regulated business under the Incentive Based Regulation framework of RM1,28 billion,” TNB said.

On a quarter-on-quarter basis, the group’s net profit fell 20.89% from RM1.21 billion in the preceding quarter, while revenue rose 11.17% from RM10.32 billion, underpinned by lower Imbalance Cost Pass-Through rebate.

The group did not declare any dividends for the quarter.

On its prospects, TNB said amid the developments surrounding the pandemic, it foresees a prospect of gradual recovery on its performance for the year 2021, supported by the recovery of the Malaysian and global economies.

“The group has taken prudent measures in terms of its operational and financial requirements to ensure it remains resilient,” it added.

Shares of TNB ended one sen or 0.10% lower at RM9.96 today, valuing the utility company at RM56.82 billion.