TNB Delivers Solid Q1 2026 Results: Profit Rises, Major Sukuk Issuances, and Strategic Growth in Renewables
Key Financial Highlights
- Revenue Growth: TNB recorded a 6.6% increase in revenue to RM17.10 billion for Q1 2026, up from RM16.04 billion a year ago. The main driver was a 5.5% growth in electricity sales, contributing an additional RM861.1 million, supported by a 7.0% surge in overall demand, especially from the commercial sector.
- Operating Profit: Operating profit grew by 5.6% to RM2.45 billion (Q1 2025: RM2.32 billion), attributed to higher electricity demand and lower fuel costs.
- Profit After Tax: Profit after tax advanced 4.4% year-on-year to RM1.09 billion. Profit attributable to shareholders was RM1.10 billion, translating into basic and diluted earnings per share (EPS) of 18.83 sen, up from 18.20 sen and 18.15 sen respectively.
- Automatic Fuel Adjustment (AFA) / ICPT: The over-recovery position was RM861.7 million, significantly higher than last year’s RM175.2 million, due to reduced fuel prices.
- Balance Sheet Strength: Total net assets stood at RM52.51 billion with retained profits of RM45.34 billion. Total borrowings increased to RM60.51 billion from RM59.09 billion at end-2025.
- Cash & Liquidity: Cash and cash equivalents at the end of the quarter were RM13.24 billion. Operating cash flows remained robust at RM5.65 billion for the quarter.
Dividend Update
- A final single-tier dividend for FY2025 totalling RM1.63 billion was paid on 17 April 2026.
- No interim dividend was recommended for Q1 2026. This may be neutral to slightly negative for income-focused investors.
Strategic and Price-Sensitive Developments
- Sukuk Wakalah Programme: On 1 April 2026, TNB established a RM10.0 billion Islamic Medium Term Notes (‘Sukuk Wakalah’) Programme with a tenure of up to 50 years. The inaugural issuance is a Sustainability Sukuk Wakalah, with an expected first tranche of RM4.0 billion to be issued by end-May 2026. Proceeds will be used for projects under TNB’s Transition Finance Framework, aligned with sustainability goals and the National Energy Transition Roadmap (NETR). This positions TNB as a key player in Malaysia’s energy transition and sustainability finance.
- ASEAN Green SRI Sukuk: On 8 May 2026, TNB’s subsidiary, TNB Kuala Muda Solar Sdn Bhd, issued RM1.05 billion of ASEAN Green Sustainable and Responsible Investment Sukuk Wakalah (tenures: 3 to 19 years) to part-finance a 500MWac large-scale solar photovoltaic facility in Kuala Muda, Kedah. This underscores TNB’s aggressive push into renewables.
- Capital Commitments: TNB has authorised capital expenditure for the next five years totalling RM107.6 billion (contracted: RM455.3 million; not contracted: RM107.1 billion), reflecting significant forward investment in grid and renewable energy projects.
Material Litigations
- Southern Power Generation Sdn Bhd (SPG): TNB’s subsidiary won a judicial review in October 2025, setting aside RM78.5 million in tax assessments. However, the IRB has appealed, with a hearing scheduled for September 2026. No provision has been made, and an adverse outcome could impact future results, though current legal advice is favourable.
- TNB Western Energy Berhad (TNBWE): Facing a RM291.6 million tax assessment for YA 2018, TNBWE has obtained an interim stay pending judicial review. Case management continues with the next court date set for July 2026. No provision is made, pending the outcome.
Other Notable Points
- Effective Tax Rate: The group’s effective tax rate was 30.5%, higher than the statutory rate of 24%, mainly due to non-deductible expenses.
- Borrowings Profile: Foreign currency borrowings account for RM12.86 billion, with US Dollar, Pound Sterling, Japanese Yen, Australian Dollar, Euro, and Kuwaiti Dinar exposures. The average cost of borrowing was stable at 4.62%.
- Derivatives: The group holds RM3.27 billion notional in derivative contracts, including interest and profit rate swaps, and Power Purchase Agreements, to hedge financial and operational risks.
- Contingent Liabilities: As at 31 March 2026, claims by third parties stood at RM427.8 million, but directors believe these will not materially affect the group’s financial position.
Business Outlook
- Resilient Core Operations: The Board expects continued earnings resilience, underpinned by stable regulated business and positive macroeconomic tailwinds (Malaysia’s GDP forecasted to grow 4–5% in 2026).
- Renewable Energy and Grid Modernisation: TNB will continue to focus on grid upgrades and renewable capacity expansion, with significant capex aligned to the National Energy Transition Roadmap.
- Strategic Risks: While the group is monitoring global geopolitical uncertainties, it remains confident in its operational and financial position.
Potential Share Price Movers
- The large-scale capital raising (RM10b Sukuk, RM1.05b Green SRI Sukuk) for renewable projects represents a major strategic pivot and long-term growth opportunity.
- Any adverse development in the tax litigations could impact future profitability.
- The absence of an interim dividend may influence short-term sentiment for yield-focused investors.
- Strong Q1 performance and forward capex commitments reinforce TNB’s status as a defensive, growth-oriented utility.
Disclaimer
This article is for informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any securities. Please consult your financial advisor before making investment decisions.
Versi Bahasa Malaysia
Keputusan Kewangan Suku Pertama 2026 TNB: Poin Penting untuk Pelabur
Sorotan Kewangan Utama
- Pertumbuhan Hasil: TNB mencatat peningkatan hasil sebanyak 6.6% kepada RM17.10 bilion untuk S1 2026, berbanding RM16.04 bilion tahun lalu. Penyumbang utama ialah peningkatan 5.5% dalam jualan elektrik, disokong oleh peningkatan permintaan 7.0%, terutamanya sektor komersial.
- Keuntungan Operasi: Keuntungan operasi meningkat 5.6% kepada RM2.45 bilion (S1 2025: RM2.32 bilion), hasil permintaan elektrik yang lebih tinggi dan kos bahan api yang lebih rendah.
- Untung Selepas Cukai: Untung selepas cukai naik 4.4% tahun ke tahun kepada RM1.09 bilion. Untung boleh diagihkan kepada pemegang saham adalah RM1.10 bilion, bersamaan pendapatan sesaham asas dan cair masing-masing 18.83 sen.
- Pelarasan Automatik Kos Bahan Api (AFA / ICPT): Kedudukan over-recovery sebanyak RM861.7 juta, jauh lebih tinggi berbanding tahun lalu (RM175.2 juta) akibat harga bahan api yang lebih rendah.
- Kekuatan Kunci Kira-Kira: Jumlah aset bersih RM52.51 bilion, keuntungan tertahan RM45.34 bilion. Jumlah pinjaman meningkat kepada RM60.51 bilion dari RM59.09 bilion pada akhir 2025.
- Kecairan: Tunai dan setara tunai RM13.24 bilion pada akhir suku. Aliran tunai operasi kukuh RM5.65 bilion.
Kemaskini Dividen
- Dividen akhir FY2025 sebanyak RM1.63 bilion telah dibayar pada 17 April 2026.
- Tiada dividen interim dicadangkan untuk S1 2026. Ini mungkin neutral atau sedikit negatif untuk pelabur berorientasi pendapatan.
Perkembangan Strategik dan Sensitif Harga
- Program Sukuk Wakalah: Pada 1 April 2026, TNB telah menubuhkan Program Sukuk Wakalah RM10.0 bilion (tempoh sehingga 50 tahun). Terbitan pertama, Sustainability Sukuk Wakalah, berjumlah RM4.0 bilion dijangka diterbitkan akhir Mei 2026. Hasilnya akan digunakan untuk projek berasaskan kelestarian dan peralihan tenaga.
- ASEAN Green SRI Sukuk: Pada 8 Mei 2026, anak syarikat TNB, TNB Kuala Muda Solar, menerbitkan Sukuk Wakalah SRI Hijau ASEAN bernilai RM1.05 bilion untuk membiayai loji solar 500MWac di Kuala Muda, Kedah. Ini menegaskan komitmen TNB kepada tenaga boleh diperbaharui.
- Komitmen Modal: Perbelanjaan modal yang diluluskan untuk 5 tahun akan datang ialah RM107.6 bilion, menunjukkan pelaburan besar dalam grid dan tenaga boleh diperbaharui.
Litigasi Material
- Southern Power Generation Sdn Bhd (SPG): TNB menang semakan kehakiman terhadap taksiran cukai RM78.5 juta, namun LHDN telah membuat rayuan. Keputusan mungkin memberi impak pada masa depan jika tidak memihak TNB.
- TNB Western Energy Berhad (TNBWE): Berhadapan taksiran cukai RM291.6 juta, TNBWE memperoleh penangguhan sementara sementara menunggu semakan kehakiman. Pengurusan kes seterusnya pada Julai 2026.
Poin Lain-lain
- Kadar Cukai Berkesan: 30.5%, lebih tinggi dari kadar statutori 24%, akibat perbelanjaan tidak dibenarkan cukai.
- Profil Pinjaman: Pinjaman mata wang asing RM12.86 bilion, dengan pendedahan pada USD, GBP, JPY, AUD, EUR, dan KWD. Kos purata pinjaman kekal 4.62%.
- Derivatif: RM3.27 bilion kontrak derivatif untuk melindung nilai risiko kewangan dan operasi.
- Liabiliti Kontinjen: Tuntutan pihak ketiga RM427.8 juta; tidak dijangka memberi impak material ke atas kewangan kumpulan.
Prospek Perniagaan
- Operasi Teras Berdaya Tahan: Lembaga menjangka prestasi stabil didorong oleh perniagaan terkawal dan prospek ekonomi makro yang positif (KDNK Malaysia dijangka berkembang 4–5% pada 2026).
- Fokus Tenaga Boleh Diperbaharui dan Modernisasi Grid: TNB akan terus melabur dalam penaiktarafan grid dan perluasan kapasiti tenaga boleh diperbaharui, sejajar dengan NETR.
- Risiko Strategik: TNB yakin dapat mengurus ketidaktentuan geopolitik dengan kecemerlangan operasi dan kewangan.
Faktor-faktor yang Boleh Menggerakkan Harga Saham
- Pengumpulan modal berskala besar (Sukuk RM10b, SRI Sukuk RM1.05b) untuk projek tenaga boleh diperbaharui adalah penting untuk pertumbuhan masa depan.
- Sebarang perkembangan negatif dalam litigasi cukai boleh menjejaskan keuntungan masa depan.
- Ketiadaan dividen interim boleh memberi kesan kepada sentimen jangka pendek untuk pelabur berorientasi hasil.
- Prestasi S1 yang kukuh dan komitmen capex mengukuhkan TNB sebagai utiliti defensif dan berorientasi pertumbuhan.
Penafian
Artikel ini hanya untuk tujuan maklumat dan bukan nasihat pelaburan atau cadangan membeli, menjual, atau memegang mana-mana sekuriti. Sila rujuk penasihat kewangan anda sebelum membuat keputusan pelaburan.
