Tenaga Nasional (5347) Q2 2026 earnings summary

Executive summary

• Core PAT for H1 2026 increased by 5.3% year-over-year to MYR 2.3 billion, driven by strong operational execution and higher electricity demand, especially from the commercial sector and data centers.

• Interim dividend of MYR 0.25 per share declared, representing a 63.2% payout on adjusted PATMI, reflecting strong shareholder returns.

• Electricity demand grew robustly, with system peak demand reaching a record 32,014 MW in August 2026, led by commercial and data center sectors.

• Strategic partnerships and investments in renewables and grid modernization advanced, supporting the energy transition.

• Data center energy consumption more than doubled year-on-year, with a secured pipeline of 61 projects totaling 8.35 GW maximum demand.

Financial highlights

• Revenue for H1 2026 rose 7.5% year-over-year to RM35,339.7 million, mainly from commercial and data center demand.

• EBITDA increased by 5.0% to RM10,778.4 million, with an EBITDA margin of 30.8% (down from 31.6% last year) due to cost pressures.

• Core PAT improved by 5.3% to RM2,312.8 million; reported PAT declined 10% year-over-year to RM1,993.2 million due to lower forex gains and higher operating expenses.

• Operating expenses rose 10.5% year-over-year, driven by higher fuel and power purchase costs.

• Trade receivables at MYR 4.7 billion, lower than last year despite higher revenue, reflecting strong credit management.

Outlook and guidance

• Electricity demand growth for FY2026 revised upward to 5%-6%, in line with Malaysia's GDP growth of 4%-5%.

• Total group CapEx for 2026 maintained at MYR 18 billion (MYR 13 billion regulated, MYR 5 billion non-regulated).

• Focus on strict financial discipline, optimizing capital structure, and preserving investment-grade credit ratings.

• Commitment to consistent, sustainable dividend policy and integration of sustainability into long-term strategy.

• Strategic focus on grid modernization, infrastructure expansion, and renewable energy integration.