(Updated)

Tenaga 4Q net profit surges to RM1.21b on higher tax credit, declares 58 sen dividend

Tenaga 4Q net profit surges to RM1.21b on higher tax credit, declares 58 sen dividend
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KUALA LUMPUR (Feb 26): Tenaga Nasional Bhd's net profit for the fourth quarter ended Dec 31, 2020 surged to RM1.21 billion from RM653.3 million a year earlier, due mainly to higher tax credit resulting from the claim of the reinvestment allowance incentive.

In a bourse filing today, the utility giant said revenue for the quarter fell 15% to RM10.32 billion from RM12.18 billion due to lower sales of electricity.

It said the decline was largely contributed by customers of commercial and industrial segments, which were affected by the Covid-19 outbreak.

Earnings per share rose to 21.27 sen from 11.49 sen.

Tenaga declared a final single tier dividend of 18 sen per share and a special single tier dividend of 40 sen per share for the financial year ended Dec 31, totalling RM3.31 billion.

It said the payment date will be announced in due course.

For the financial year ended Dec 31, 2020 (FY20), Tenaga said net profit declined to RM3.59 billion from RM4.53 billion a year ago, on the back of reduced revenue of RM43.98 billion versus RM50.94 billion.

On its prospects, Tenaga said while near-term growth in 2021 will be affected by the stricter containment measures, the impact, however, will be less severe than that experienced in 2020.

It said the growth is projected to improve from the second quarter onwards driven by the recovery in global demand and policy measures including Penjana, Kita Prihatin, Budget 2021 and Permai.

Tenaga said it foresees the pace of recovery that it registered in the second half of FY20 will continue into 2021 although with some challenges following the re-imposition of the Movement Control Order.

“However, the impact will be cushioned as most economic activities remain operational.

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

At the midday break today, Tenaga slipped 1.58% or 16 sen to RM9.96, valuing it at RM56.82 billion.