KUALA LUMPUR (May 25): Tenaga Nasional Bhd (KL:TENAGA) posted a 3.7% increase in net profit for the first quarter, driven by higher electricity demand and lower fuel costs.

Net profit for the quarter ended March 31, 2026 (1QFY2026) rose to RM1.09 billion from RM1.06 billion a year earlier, while revenue climbed 6.6% or RM1.07 billion to RM17.10 billion, supported mainly by stronger electricity sales, the group's exchange filing on Monday showed. No dividend was declared.

The utility giant said electricity sales increased by 5.5%, or RM861.1 million, following a 7% rise in overall demand in Peninsular Malaysia, led primarily by the commercial sector.

The imbalance cost pass-through (ICPT) mechanism also recorded a higher over-recovery position of RM861.7 million during the quarter, compared with RM175.2 million in 1QFY2025, mainly due to lower fuel prices.

As a result, operating profit grew 5.6% to RM2.45 billion from RM2.32 billion a year earlier, underpinned by higher electricity demand alongside reduced fuel prices.

Looking ahead, Tenaga said it remains cautious over ongoing global geopolitical uncertainties but is confident in navigating the challenges through operational efficiency and prudent financial management.

At the same time, the group said it will continue pursuing strategic growth opportunities in the evolving energy sector, particularly in grid modernisation and renewable energy expansion, in line with the National Energy Transition Roadmap and its commitment to sustainable long-term value creation.

Shares in Tenaga closed up four sen or 0.3% at RM14.46, valuing the group at RM82.29 billion. Over the past one year, the stock has gained 3.3%.