KUALA LUMPUR: Tenaga Nasional Bhd (TNB) expects a stable performance for the year and will remain cautious on the impact of fuel prices and currency volatility on its earnings.
Its net profit slipped 3.7 per cent year-on-year (YoY) to RM856.2 million in the third quarter ended Sept 30, 2023 (Q3 2023) from RM888.9 million in Q3 2022 due to negative fuel margins and cushioned by lower tax expenses and gain in foreign exchange translation.
Operating profit for the current quarter decreased by 30.5 per cent or RM888.0 million due to the lower imbalance cost pass through under recovery recognised in the current quarter of RM1.99 billion compared to RM6.11 billion in the last corresponding quarter, offset by lower operating expenses of RM2.68 billion.
Revenue for the quarter under review rose 3.9 per cent YoY to RM13.47 billion versus RM12.96 billion in the same quarter last year resulted from higher sales of electricity by 3.9 per cent or RM496.2 million.
Year-to-date, TNB's net profit slipped to RM2.19 billion from RM2.65 billion a year ago while revenue rose to RM39.41 billion from RM37.95 billion.
TNB said for the period ended Sept 30, 2023, its electricity demand grew 2.7 per cent in line with Malaysia's gross domestic product (GDP) expansion of 3.3 per cent.
"However, the earnings were impacted by negative fuel margin and foreign exchange volatility.
"Despite the challenging global environment, the group reported a fair performance.
"The group's receivables and working capital position have improved, supported by good collection rate and easing pressure on coal prices," it said.
TNB added that it will continue to take prudent measures in managing its operational and financial requirements to ensure it remains resilient.