KUALA LUMPUR (Aug 27): Tenaga Nasional Bhd (KL:TENAGA) saw its earnings decline more than 23%, dragged by foreign exchange losses. Lower taxation partly cushioned the impact.

Net profit for the quarter ended March 31, 2026 (2QFY2026) stood at RM888.8 million, compared with RM1.16 billion a year ago, the utility giant said in a bourse filing.

This was as revenue climbed 8.3% to RM18.6 billion from RM16.8 billion, supported mainly by stronger electricity sales, which increased 8.5% or RM1.38 billion. Demand growth also rose 9.1%, led primarily by the commercial sector.

Tenaga declared an interim single-tier dividend of 25 sen per share, with the payment date to be announced later.

For the quarter under review, Tenaga's automatic fuel adjustment (AFA) recorded an under-recovery of RM514.9 million, compared with an over-recovery of RM589.3 million a year earlier, mainly due to movements in fuel prices.

This resulted in operating profit declining 1.4% to RM2.09 billion from RM2.12 billion a year earlier. For the cumulative six-month period (6MFY2026), net profit fell more than 10% to RM1.99 billion from RM2.22 billion, while revenue rose 7.5% to RM32.9 billion from RM30.6 billion.

Looking ahead, the group said it remains vigilant of external uncertainties, including geopolitical developments and volatility in the global energy market, but is well-positioned to navigate these challenges.

Tenaga added that it will continue to accelerate strategic investments in grid modernisation, infrastructure expansion and renewable energy integration.

Tenaga shares settled unchanged at RM14.30 on Thursday, giving it a market capitalisation of RM83.4 billion. Year to date, the counter has gained more than 4%.