KUALA LUMPUR (Feb 27): Tenaga Nasional Bhd (TNB)’s net profit dropped 7.83% year-on-year (y-o-y) to RM809.1 million in the fourth quarter ended Dec 31, 2022 (4QFY2022) from RM877.8 million a year ago.

Its net profit was dragged by higher finance cost and tax expenses, but was offset by the higher foreign currency translation gain in the current quarter.

As a result, earnings per share fell to 14.1 sen in 4QFY2022 from 15.35 sen previously, the group’s Bursa Malaysia filing showed.    

Quarterly revenue, however, increased 3.1% to RM12.92 billion, from RM12.53 billion, thanks to higher sales of electricity.

The board has declared a final single-tier dividend of 26 sen per share, with the payment date to be announced in due course.

The latest dividend brings the total dividend for FY2022 to 46 sen per share, 15% higher than the 40 sen per share declared in FY2021.

Meanwhile, TNB’s receivables expanded further to RM22.83 billion as at 4QFY2022, up 2.36% from RM22.3 billion as at 3QFY2022. On a y-o-y basis, TNB's receivables more than doubled from RM10.55 billion in 4QFY2021.

In terms of borrowings, TNB recorded a higher sum of RM63.88 billion — comprising short-term borrowings of RM13.26 billion and long-term borrowings of RM50.62 billion — 23.62% higher than RM51.68 billion posted in 4QFY2021.

On a quarterly basis, TNB’s borrowings inched up from RM62.86 billion in the immediate preceding quarter, 3QFY2022.  

TNB explained that the continued high fuel prices in the second half of 2022 has resulted in TNB carrying higher receivables and borrowings balances.

“The recovery of the receivables will be subjected to the next ICPT(imbalance cost pass-through) cycle, in which the government has agreed to fund the rebate and the surcharge amounting to RM10.8 billion,” it said.

For the full year, TNB’s annual net profit dropped 5.42% to RM3.46 billion in FY2022, from RM3.66 billion a year prior, despite higher annual revenue of RM50.87 billion, up 5.71% from RM48.12 billion in FY2021.

“This was mainly contributed by the higher finance cost and tax expenses which includes additional tax on Cukai Makmur for FY2022, amounting to RM340.8 million,” it said.

On prospects, TNB foresees a reasonable performance for the year 2023 and will continue to remain cautious about the challenges ahead, including high fuel prices and inflation.

TNB settled eight sen or 0.82% lower at RM9.64, giving the utility giant a market capitalisation of RM55.46 billion.