TNB distributed RM18.2b dividend in 5 years

Its Energy Transition Plan has brought positive biz growth to meet the challenges of 2023 


TENAGA Nasional Bhd (TNB) has distributed a total of RM18.22 billion dividends to its shareholders in the past five years following the company’s stable performance and prudent capital management. 

Over that period, TNB has been able to consistently maintain a dividend payout ratio (DPR) of more than 50% supported by stable performance and prudent capital management, amid a relatively long challenging period following the Covid-19 pandemic. 

In April, the utility company announced a DPR of RM2.65 billion for its financial year ended 2022 (FY22), based on a 55.2% adjustment of profit after tax and minority interest (PATAMI) ratio. 

Its dividend pay-out in 2018 was RM3.03 billion (55.8%), RM5.69 billion (56%) in 2019, RM4.56 billion (58.5%) in 2020 and RM2.29 billion (52.8%) in 2021. 

TNB’s biggest shareholders are government-owned institutional investors including Khazanah Nasional Bhd (25.5%), Permodalan Nasional Bhd (PNB) (18.3%), Employees Provident Fund (EPF) (15.8%) and the Retirement Fund Inc (KWAP) (7.3%) whose contributors and shareholders are enjoying direct benefits from TNB’s generous dividend payout rate. 

According to TNB, its Energy Transition Plan has brought positive business growth to meet the challenges of 2023, to increase value for shareholders and share benefits with the people. 

“In 2023, TNB will reach the significant milestone of 10 million customers in Peninsular Malaysia. This is a meaningful accomplishment for TNB as we continue to provide a reliable and continuous supply of electricity while also enhancing customer experience. 

“Going forward, we will continue to advocate the adoption of a digital, smarter and greener lifestyle with great convenience, while improving energy literacy to deliver TNB’s Energy Transition Plan SP2050 goals. 

“We shall continue to focus on four key areas to win our customers, namely, electrification via EV and urban farming, energy efficiency via energy monitoring solutions and systems, prosumers via solar and battery, and digital Platform via digital marketing, EV and aggregation for green energy trading,” it said in its 2022 annual report released in April. 

TNB continues to focus on 4 key areas to win consumers, including prosumers via solar and battery (pic: TMR)

It is enhancing its smart metre customer offerings, which will enable near real-time information on electricity consumption, with accurate and timely billing. 

With the continued growth of myTNB’s connected accounts and the success of digital initiatives such as the Melaka pilot programme, it is on track to becoming a more sustainable and environmentally friendly organisation. 

TNB will further promote digital billing, the Energy Budget feature, and the myTNBiz portal to meet its customers’ evolving needs. 

It also recognises the importance of engaging and collaborating with stakeholders to find solutions that support the growth of the industry in a sustainable and responsible manner.
This includes working towards 
the energy transition and promoting the adoption of electric vehicles (EVs) to reduce carbon emissions in the transportation sector. 

Through collaboration with the government, TNB is committed to being a key player in building a more sustainable and responsible future for the nation. 

TNB’s fourth quarter ended Dec 31, 2022 (4Q22), fell 7.82% to RM809.1 million from RM877.8 million, mainly due to higher finance costs and tax expenses offset by the higher foreign currency translation gain during the period.

Revenue in 4Q improved to RM12.92 billion from RM12.53 billion previously, mainly due to the higher sales of electricity.

For FY22, TNB’s net profit decreased slightly to RM3.46 billion from RM3.66 billion in the previous corresponding period.

Revenue for FY22 increased to RM50.87 billion from RM48.12 billion a year earlier due to higher sales of electricity.

The group foresees a reason- able performance for 2023 and will continue to remain cautious on the challenges ahead including high fuel prices and inflation.

“As the group pursues its growth strategy, it will continue to take prudent measures in terms of its operational and financial requirements to ensure it remains resilient,” TNB said.

At close of trading last Friday, TNB’s shares was at RM9.46 an increase of 37 sen, or 4.07% translating to a market capitalisation of RM54.4 billion.

  • This article first appeared in The Malaysian Reserve weekly print edition