The 5% year-on-year (y-o-y) increase in demand, led by the continued recovery from the Covid-19 economic fallout, has also helped the energy provider turn in a RM905.6 million after tax profit (PAT) in the second quarter (Q2) of 2022, up 3.9% from RM871.2 million recorded in Q1.
TNB president and CEO Baharin Din told analysts today the improved performance was consistent with the overall improvement in the gross domestic product (GDP) growth of 6.9%.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) amounted to RM10.58 billion while Ebitda margin improved to 42.3% from 40.6% compared with the same period last year.
This was a reflection of an improvement in TNB’s operational performance, Baharin said.
He said the RM5.8 billion payment and a RM6 billion government guaranteed loan facility showed that there was a concerted effort to address the high fuel price situation.
He said TNB has taken proactive measures to manage its working capital to address the substantial growth in receivables due to the imbalance cost pass-through.
“These include fulfilling our obligations to our suppliers and vendors through continuous cash flow monitoring and successfully raising additional borrowings when required,” he said.
“We stay prudent in our working capital management and expect our credit rating to remain stable. We have also improved our collection, having achieved an average rate of 98% for H1 compared to 92% in the same period last year,” he added.
TNB had recently announced its commitment to invest around RM10 billion to RM20 billion per year over the next 28 years as capital expenditure for initiatives to fast-track its energy transition plan to reduce its emissions intensity to net zero by 2050.
Baharin said that under the plan, the group will see major shifts to renewable energy and new green tech going forward, meeting its environmental, social and governance commitment while ensuring sustainable business growth.
TNB’s board of directors has declared an interim dividend of 20 sen per share for the first half of the year compared with 22 sen per share in the same period of 2021.