KUALA LUMPUR (Nov 25): Tenaga Nasional Bhd (TNB) posted higher net profit at RM1 billion for the third financial quarter ended Sept 30, 2021 (3QFY21), up 22% from RM821.5 million in the immediate preceding quarter. 

Revenue grew 4.3% to RM12.97 billion in the quarter under review against RM12.44 billion in 2QFY21. The utility group did not declare any dividend for the quarter.

The higher quarterly earnings against the preceding quarter were mainly due to lower net loss on impairment of financial instruments and current taxation in 3QFY21, the country’s largest electric utility company said in an exchange filing. 

On a yearly basis, TNB’s net profit was flat compared with RM1.01 billion recorded in 3QFY20. However, its revenue was 16.8% higher versus RM11.11 billion a year ago. 

TNB said the year-on-year increase in revenue resulted from the Imbalance Cost Pass-Through (ICPT) of an under-recovery position of RM1.31 billion as compared to an over recovery position of RM956.8 million in 3QFY20.

For the cumulative nine-month period ended Sept 30, TNB’s net profit expanded nearly 17% to RM2.78 billion from RM2.38 billion a year ago, while revenue increased 9.64% to RM36.89 billion from RM33.65 billion. 

TNB noted that its performance improved compared with the same period last financial year despite the continued challenges faced during the Covid-19 pandemic for the first nine months of FY21.

“Demand [for electricity] has started to show improvements, growing at 0.6% against a contraction of 6.2% in the same period last financial year. This is in line with the increase in the country’s gross domestic product (GDP) of 3% in the first nine months of 2021,” it said.

The utility group believes that the improvement in the domestic economy will result in higher electricity demand and support the positive momentum seen across the group’s operation. Amid the encouraging developments, TNB foresees a stable performance for the remaining quarter of the financial year. 

“Nonetheless, the group will continue to take prudent measures in terms of its operational and financial requirements to ensure it remains resilient,” TNB added.

TNB share price fell six sen to RM9.38, valuing the group at RM53.71 billion.