TNB committed to fair shareholder returns

The board approves a final single-tier dividend of 20 sen per share, raising the total single-tier dividend to 50 sen per share for FY19


TENAGA Nasional Bhd (TNB) is committed to giving fair returns to shareholders despite disruptions caused by the Covid-19 pandemic.

“TNB continues to balance our commitment to growing the business for fair shareholder returns with our responsibility to customers in this current challenging period, during which we continue to work closely with the government to support the rakyat through various initiatives introduced under the Prihatin and Bantuan Prihatin Elektrik packages,” TNB president and CEO Datuk Seri Amir Hamzah Azizan said in a statement yesterday.

At the virtual AGM yesterday, TNB board of directors (BOD) had approved a final single-tier dividend of 20 sen per share, raising the total single-tier dividend to 50 sen per share for the financial year 2019 (FY19).

The number translates to a dividend payout ratio of 56% from the group’s adjusted profit after tax and minority interest (PATAMI), effectively hitting the higher tier of the company’s 30% to 60% dividend policy consistently for the last three financial years.

In addition, the BOD also approved a special dividend of 50 sen per share, bringing the total dividend per share to RM1 — which marks TNB’s highest dividend payout to date.

The group’s total dividend payout of RM5.69 billion in FY19 was a record high.

“This is the third consecutive year that we have offered a dividend at the higher end of our stated policy of paying between 30% and 60% of our adjusted PATAMI.

“This is reflective of TNB’s commitment towards discharging its ‘amanah’ to the people who are the ultimate beneficiaries through our major institutional shareholders,” TNB chairman Datuk Seri Mahdzir Khalid said.

As of May 2020, the majority shareholders of TNB comprises Khazanah Nasional Bhd (25.8% equity), Permodalan Nasional Bhd (18.1%), the Employees Provident Fund (16.7%) and Retirement Fund Inc (6.7%), as well as other government agencies like Lembaga Tabung Haji and Lembaga Tabung Angkatan Tentera which own 1.2%.

Amir Hamzah said the group will remain steadfast in delivering its “Reimagining TNB” strategic roadmap, including efforts to diversify TNB’s generation sources especially in renewable energy, investing in the national grid, as well as focusing on customers with a suite of products and services that go beyond the sales of electricity.

The utility company has recently strengthened its 10-year strategic roadmap and resolved to driving a stronger sustainability agenda through more investments into green energy, both domestically and internationally.

TNB will also continue to facilitate the country’s energy transition by enhancing its core infrastructures with digital technology.