Tenaga Nasional (5347) Q1 2026 earnings summary

Executive summary

• Revenue increased 6.6% year-over-year to RM17,103.7 million in Q1 2026, driven by a 7% surge in electricity demand, especially from the commercial sector and data centers.

• EBITDA grew 6.5% to RM5,521.8 million, with margin improving from 32.7% to 34%.

• Profit after tax rose 4.4% year-over-year to RM1,086.9 million, supported by improved plant performance and lower fuel prices.

• Operational efficiency and plant availability improved, with world-class network reliability and SAIDI at 11.72 minutes.

• Strategic partnerships and renewable energy initiatives advanced, including Malaysia's first grid-connected BESS project and new renewable projects.

Financial highlights

• Electricity sales contributed RM16,464.2 million to total revenue, with sales up 5.5% year-over-year, mainly from the commercial sector.

• Adjusted core PAT (excluding ForEx and MFRS 16) grew 6.5% to RM1,242.5 million.

• Operating expenses (excluding depreciation) remained stable at RM10,850.9 million, while overall fuel costs declined due to lower coal and gas prices.

• Trade receivables decreased to RM4.1 billion, with collection period improved to 26 days.

• Regulatory receivables dropped from RM1.9 billion in December to RM0.7 billion in March 2026.

Outlook and guidance

• Electricity demand growth projection revised upward to 4.5%-5.5%, aligned with Malaysia's GDP growth forecast of 4.0%-5.0% for 2026.

• Focus remains on grid modernization, renewable energy expansion, and reducing coal dependency, targeting coal-free operations by 2050.

• Group CapEx guidance maintained at RM18 billion for 2026, with RM15 billion for regulated and RM5 billion for non-regulated business.

• Dividend policy remains intact, with commitment to sustainable shareholder returns.