TNB posts higher Q4 net earnings, pays record dividend of RM1

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11 shares, 65 points

TNB posts higher Q4 net earnings, pays record dividend of RM1 1

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) recorded net earnings of RM653.3 million for the fourth quarter ended Dec 31, from a net loss of RM134.3 million a year ago, due to the impairment of the cost of investment in an associate of RM304.7 million.

Revenue stood lower at RM12.2 billion, from RM12.5 billion, due to the decrease in total sales of electricity of RM498.8 million recorded during the quarter.

The group has approved a final single tier dividend of 20 sen per share, raising the single tier dividend total to 50 sen per share for FY19, which translates to a dividend payout ratio of 56%.

In addition, TNB’s board also approved a special dividend of 50 sen per share, bringing the total dividend per share to RM1, amounting to RM5.69 billion for this financial year. This marks TNB’s highest dividend payout to date.

For the full year, TNB’s net profit rose 21.6% to RM4.5 billion from RM3.7 billion, on the recognition of the impairment as well as on a foreign currency translation gain of RM200.6 million.

Revenue for the period increased by 1.1% to RM50.9 billion from RM50.4 billion, consistent with the increase in total sales of electricity.

Sales in electricity for the group increased 3.5% in the reporting period to RM49.02 billion, from RM47.36 billion in 2018.

TNB president and CEO Datuk Seri Amir Hamzah Azizan (pix) described the group’s financial performance in FY2019 as “reasonable” amid operational challenges faced by TNB’s generation business in the last quarter, resulting in a lower contribution to the group.

On TNB’s international business, Amir said the turnaround exercise of assets in Turkey and India has led to a return of profitable contribution from the associates.

Following impairments taken out on TNB’s asset in India (GMR Energy Ltd) in 2018, the company is undergoing a restructuring, primarily through asset monetisation, while TNB’s UK investments are showing potential upsides due to technology enhancement initiatives currently being undertaken.

Looking ahead, Amir said that despite the economic challenges, the group’s performance for FY20 is expected to remain resilient.

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