KUALA LUMPUR: Tenaga Nasional Bhd's (TNB) net profit fell 28.6 per cent to RM715.7 million in the first quarter ended March 31, 2024 (1Q24) from RM1 billion a year ago.
The group said this was primarily due to foreign exchange translation loss and tax expenses recognised in the current quarter.
However, these were partially offset by net finance income and cost, according to TNB's filing to Bursa Malaysia today.
The group's quarterly revenue, however, rose eight per cent to RM13.64 billion from RM12.63 billion previously, mainly due to an increase in electricity sales.
According to TNB, the demand growth increased by 9.9 per cent, mainly driven by commercial and domestic sectors.
It said its imbalance cost pass-through (ICPT) under recovery position decreased to RM2.35 billion from RM3.63 billion due to lower generation costs during the quarter.
Despite the group's positive revenue growth and lower generation costs, there was a slight decrease in operating profit, by 2.8 per cent to RM2.02 billion from RM2.08 billion in the previous corresponding period.
TNB noted that this decline was due to the lower other operating income.
The group registered a lower earnings per share of 12.37 sen for the quarter compared to 17.42 sen in 1Q23.
TNB said it is committed to play an integral role in supporting the National Energy Transition Roadmap (NETR) while pursuing business growth.
With the Malaysian economy projected to grow between four to five per cent, the group foresees a stable performance for the year 2024 and will remain cautious on the challenges ahead while taking prudent measures to ensure it remains resilient.
For 1Q24, TNB noted that it reported higher revenues driven by electricity demand growth of 9.9 per cent, consistent with the country's gross domestic product expansion of 4.2 per cent.
"The group maintained a reasonable performance although earnings were affected by foreign exchange translation loss," it said.