TNB net profit declines to RM653.30m in Q2

by BERNAMA/ graphic by MZUKRI

TENAGA Nasional Bhd’s net profit declined to RM653.30 million in the second quarter ended June 30, 2020 (Q2 2020) from RM1.11 billion recorded in the same period last year.

In a filing with Bursa Malaysia, the multinational electricity company said its revenue dropped to RM10.89 billion versus RM12.87 billion previously, mainly due to drop in sales of electricity.

Basic earnings per share fell to 11.48 sen compared with 19.63 sen before.

“The Malaysian economy registered a contraction of 17.1 per cent in the second quarter of 2020, due to the stringent containment measures to control the COVID-19 pandemic which included various measures that restricted production and consumption activities.

“However, the Malaysian economy is expected to recover gradually in the second half of 2020 as the economy progressively reopens and external demand improves. This outlook is underpinned by the rebound of key indicators such as wholesale and retail trade, industrial production, gross exports, and electricity generation,” TNB said.

The company added that amid the challenging environment, it foresees the prospect of a gradual recovery on the group performance for the remaining quarters of the financial year ending Dec 31, 2020, on the back of improving business activities momentum aided by the timely rollout of the government’s stimulus package under its National Economic Recovery Plan (PENJANA).

The group has taken prudent measures in terms of its operational and financial requirements to ensure it remains resilient.

At lunch break, shares of TNB slipped two sen to RM11.10 with 1.57 million shares transacted.