KUALA LUMPUR: Tenaga Nasional Bhd’s (TNB) net profit rose to RM3.66 billion for the financial year ended Dec 31, 2021 (FY2021) from RM3.59 billion in the previous year.
This was despite a 72% larger net loss on impairment of financial instruments of RM940.2 million during the year.
The improved bottom line was supported by a higher operating profit amounting to RM8.08 billion compared with RM7.36 billion in 2020.
Revenue surged to RM52.63 billion against RM43.98 billion previously, mainly attributable to higher total sales of electricity, which increased by 19.3% or RM8.35 billion.
“(The higher electricity sales) included the imbalanced cost pass-through (ICPT), which was in an under-recovery position of RM4.51 billion compared to an over-recovery position of RM3.03 billion in the previous corresponding year, mainly due to higher fuel prices,” it said in a bourse filing today.
For the fourth quarter of FY2021, the utility giant, however, recorded a lower net profit of RM877.80 million against RM1.21 billion a year earlier, while revenue widened to RM15.74 billion from RM10.32 billion previously.
It said the narrowed bottom line growth for the quarter under review was mainly due to unfavourable foreign exchange and higher tax expense recognised in the current quarter.
While the improved revenue was mainly contributed by higher total sales of electricity and a slight increase in operating profit, it was offset by higher operating expenses mainly due to higher fuel prices, it added.
On prospects, TNB said with the Regulatory Period 3 effective from Feb 1, 2022, the group foresees a reasonable performance for 2022 while remaining cautious on high fuel prices and the challenging economic outlook.
“The group will continue to take prudent measures in terms of its operational and financial requirements to ensure it remains resilient,” it said.