KUALA LUMPUR (May 31): Tenaga Nasional Bhd's (KL:TENAGA) net profit fell 28.6% to RM715.7 million in the first quarter ended March 31, 2024 (1QFY2024) from RM1 billion a year ago, due to foreign exchange translation losses and higher tax expenses.

Quarterly earnings per share fell to 12.37 sen in 1QFY2024 from 17.42 sen in 1QFY2023, the electricity utility's bourse filing showed. No dividend was announced for the quarter.

Revenue rose 8% to RM13.64 billion in 1QFY2024 from RM12.63 billion in the previous corresponding quarter.

"For 1QFY2024, the group reported higher revenues driven by electricity demand growth of 9.9% (year-on-year), consistent with the country's Gross Domestic Product (GDP) expansion of 4.2%," Tenaga said.

Tenaga’s receivables, deposits and prepayments rose 8.45% to RM11.29 billion for 1QFY2024 from RM10.41 billion in 4QFY2023, while deposits, bank and cash balances was lower by 2.7% to RM18.87 billion from RM19.39 billion.

Nevertheless, the utilities giant said the imbalance cost pass-through (ICPT) under-recovery fell to RM2.35 billion from RM3.63 billion in the same quarter the prior year, due to lower generation costs during the quarter.  

On a quarter-on-quarter basis, net profit grew 22.6% from RM583.9 million in 4QFY2023, mainly due to the impairment of an intangible asset recognized in the preceding quarter. Meanwhile, revenue rose marginally by 0.1% from RM13.63 billion.

On its prospects, Tenaga said with the Malaysian economy projected to grow between 4% to 5%, the group anticipates a stable performance for FY2024 while remaining cautious about challenges and taking prudent measures to ensure resilience.

The group also reaffirmed its commitment to play an integral role in supporting the National Energy Transition Roadmap.

Shares of Tenaga fell 14 sen or 1.06% to close at RM13.04, giving the group a market capitalisation of RM75.47 billion.