Tenaga Nasional (5347) Q1 2025 earnings summary

Executive summary

• Revenue rose 17.6% year-on-year to RM16,038.7 million, driven by a 17.5% increase in electricity sales, strong demand from data centers and commercial sectors, and regulatory adjustments under the IBR framework.

• Profit after tax increased 53.5% year-on-year to RM1,040.8 million, reflecting effective strategic initiatives, operational excellence, and improved margins.

• Strategic partnerships and international expansion advanced renewable energy and EV adoption, with new solar projects in the UK and a major MRO contract in Kuwait.

• Continued focus on sustainability, targeting a 5% annual reduction in carbon intensity for Scope 1 emissions in 2025, with long-term goals of 35% reduction by 2035 and net zero by 2050.

• Operating profit grew 14.7% year-on-year, aided by lower operating expenses and reduced impairment losses.

Financial highlights

• EBITDA reached RM5,187.0 million, up 7.9% year-on-year, with margin improving to 32.7%.

• PAT increased to RM1,040.8 million, a 53.5% rise from the prior year.

• Earnings per share (basic) increased to 18.20 sen from 12.37 sen year-on-year.

• Improved cash flow and capital structure, with trade receivables reduced and collection period improved to 27 days from 31 days year-on-year.

• Net cash generated from operating activities was RM5,971.5 million, up from RM4,674.4 million year-on-year.

Outlook and guidance

• Electricity demand is projected to grow 3.5%-4.5% for 2025, in line with GDP projections.

• CapEx forecast up to RM20 billion for 2025: RM12 billion regulated, RM8 billion non-regulated, focusing on grid, generation, and RE projects.

• Expects to utilize 70% of contingent CapEx allocation by end of RP4, with RM1-2 billion contingent CapEx planned for 2025.

• Maintains conservative RM250 million PAT target for GenCo business, expecting improved performance in subsequent quarters.

• Group remains committed to supporting the National Energy Transition Roadmap and sustainable growth.