KUALA LUMPUR (Aug 25): Tenaga Nasional Bhd’s (TNB) net profit slumped 62.41% to RM327.9 million for the second quarter ended June 30, 2023 (2QFY2023), from RM872.2 million a year ago. Earnings per share declined to 5.70 sen from 15.23 sen.

"This was mainly contributed by negative fuel margins and foreign exchange translation losses,"  the utility giant said in a bourse filing on Friday (Aug 25).

Quarterly revenue rose marginally by 3.78% to RM13.32 billion, from RM12.84 billion in 2QFY2022, on the back of a 3.4% increase in electricity sales to RM842.1 million, with a demand growth of 2%.

For the cumulative six months ended June 30, TNB’s net profit fell 24.65% to RM1.33 billion from RM1.77 billion last year, while revenue grew 3.83% to RM25.95 billion from RM24.99 billion, driven by an increase of  3.5% or RM434.2 million in the sales of electricity.

The group has approved an interim dividend of 18 sen per share for FY2023.

TNB said the group's performance in 2QFY2023 was fair considering the challenging environment.

It said the electricity demand growth of 2% was in line with the country's gross domestic product expansion of 2.9% in the quarter.

"Declining coal prices globally has alleviated the pressure on the group’s cash flow position. This, coupled with stronger collection rate, have contributed to a favourable accounts receivable movement and a stronger working capital position.

"With the overall economy projected to grow at the lower end of the 4% to 5% range, the group foresees a reasonable performance for the year 2023 and will continue to remain cautious on its earnings exposure to fuel prices and currency volatility," said TNB.

The group added that it will continue to take prudent measures in managing its operational and financial requirements to ensure it remains resilient.

Shares in TNB closed three sen or 0.30% lower at RM9.97 on Friday, giving the group a market capitalisation of RM57.70 billion.