Tenaga Nasional (5347) Q1 2025 earnings summary

Executive summary

• First quarter FY2025 saw stable performance with PAT of RM1,040.8 million, reflecting effective strategic initiatives, regulatory adjustments under the IBR framework, and operational excellence.

• Revenue rose 17.6% year-over-year to RM16,038.7 million, driven by higher electricity sales and strong commercial demand, especially from data centers.

• Data center consumption surged 3.3 times year-on-year, with commercial sector energy consumption up 5.1%.

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

• Regulatory Period 4 (RP4) commenced with RM42 billion allowed CapEx over three years, with 34% of base CapEx utilized in Q1.

Financial highlights

• Revenue rose 17.6% year-on-year to RM16,038.7 million, mainly from a 17.5% increase in electricity sales.

• EBITDA grew 7.9% year-on-year to RM5,187.0 million, with margin improving from 30% to 32.7%.

• PAT increased 53.5% year-on-year to RM1,040.8 million.

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

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

Outlook and guidance

• Anticipated demand growth for 2025 is 3.5%-4.5%, aligned with GDP projections of 4.4%-5.5%.

• CapEx spending for 2025 expected up to RM20 billion (RM12 billion regulated, RM8 billion non-regulated).

• Commitment to 5% annual reduction in carbon emission intensity, aiming for 35% by 2035 and net zero by 2050.

• Positive momentum in data center and EV sectors expected to continue.

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