Tenaga Nasional (5347) Q3 2024 earnings summary

Executive summary

• PAT for the first nine months of 2024 reached RM3,821.8 million, up 83.8% year-over-year, reflecting strong operational momentum, foreign exchange gains, and successful growth initiatives.

• Revenue for the nine months was RM42,358.8 million, up 7.5% year-over-year, driven by robust economic activity and electricity demand.

• Electricity demand grew 7.6% year-over-year, outpacing GDP growth of 5.3% for the same period.

• Strategic focus on energy transition, expanding renewable energy capacity, digital infrastructure, and regional integration via ASEAN Power Grid and cross-border energy exports.

• Strong progress in digital infrastructure and EV ecosystem, supporting Malaysia's green ambitions.

Financial highlights

• PAT for nine months: RM3,821.8 million, up 83.8% year-over-year.

• Revenue for nine months: RM42,358.8 million, up from RM39 billion year-over-year.

• EBITDA grew 0.4% year-over-year to RM14,398.9 million, with a margin of 36.2%.

• Improved cash flow and collection rates, enabling loan repayments and maintaining reserves at RM14,228.3 million.

• Lower finance costs due to loan repayments and improved collections.

Outlook and guidance

• Projected electricity demand growth for 2024 revised to 5.8%-6.3%, expected to surpass GDP growth of 4.8%-5.3%.

• Group CapEx for 2024 expected at RM11 billion, with RM7.1 billion for regulated business.

• RP4 proposal submitted and in advanced assessment; official announcement expected by year-end.

• Confident in maintaining stable financial performance and rewarding shareholders.

• Focus remains on prudent business strategies and advancing the National Energy Transition Roadmap.