Tenaga Nasional (5347) Q2 2025 earnings summary

Executive summary

• Group revenue for 1HFY2025 rose 17.4% year-over-year to RM32.87 billion, driven by higher electricity sales and increased commercial demand, with a new regulatory period effective January 2025.

• Profit after tax (PAT) increased 12.8% year-over-year to RM3.16 billion, with improved EBITDA margin at 32.0%, though net profit for H1 was RM2,214.2 million, up 1.1% due to higher tax expenses.

• Operating profit increased 4.0% year-over-year to RM4,438.7 million, supported by lower operating expenses and improved collections.

• Commercial sector demand grew 6.5% year-over-year, offsetting declines in industrial and domestic sectors.

• The group expects stable performance for 2025, focusing on clean energy investments and grid enhancements.

Financial highlights

• EBITDA for 1HFY2025 was RM10.27 billion, up from RM9.90 billion in 1HFY2024; normalised EBITDA (excluding MFRS16 impact) was RM8.32 billion.

• Operating expenses (excluding depreciation) fell 6.5% year-over-year, mainly due to lower fuel and power purchase costs from reduced coal prices.

• Second quarter revenue was RM16,835.0 million, up from RM14,366.8 million in Q2 2024.

• Cash generated from operations for H1 2025 was RM11,702.1 million.

• Depreciation increased 3.4% year-over-year due to higher asset build-up.

Outlook and guidance

• Electricity demand is expected to remain stable, in line with GDP growth forecasts of 4.0%–4.4% for FY2025.

• Ongoing transition to a new electricity tariff schedule in July 2025 is expected to impact regulatory adjustments.

• Continued focus on renewable energy (RE) growth, targeting coal-free operations by 2050.

• Focus on clean generation, system reliability, and sustainable growth.