KUALA LUMPUR (Feb 28): Tenaga Nasional Bhd (TNB), which is changing its financial year end from Aug 31 to Dec 31 in 2018, booked in a net profit of RM2.76 billion or 48.68 sen per share in the four-month period ended Dec 31, 2017.

TNB attributed 44.4% of its profit after tax to the regulated business. “The group earnings before interest, taxes, depreciation and amortisation (EBITDA) was recorded at RM5.2 billion, with EBITDA margin at 32.8%,” said the utility group. Revenue in the period stood at RM34.95 billion.

The company has proposed a final single tier dividend of 21.41 sen per share for the period, representing a 50% dividend payout ratio at group profit after tax and minority interests (PATAMI) level.

In a statement today, TNB chairman Tan Sri Leo Moggie highlighted that the dividend payout is “on the higher tier” of the 30%-60% company’s dividend policy. “It has always been our commitment to continuously reward our shareholders through consistent and sustainable dividend payout,” said Leo.

The closing period ended Dec 31, 2017 marks the end of the first regulatory period (RP1) of the Incentive Based Regulation (IBR) framework, said TNB president and chief executive officer Datuk Seri Azman Mohd.

“During the period, the mechanism has been successfully implemented, resulted in improvement of TNB overall efficiency in operations and businesses.

“Furthermore, the company’s stable earnings from the successful of IBR implementation is vital as it ensures that the company will be able to continuously contribute to the nation’s overall infrastructure,” said Azman.

“The aspiration amongst others is to develop smart buildings, transport vehicles and city assets that are interconnected to the smart grid,” he added.

Azman highlighted that TNB is still exploring growth opportunities at home and overseas to strengthen the group’s non-regulated business.

Moving on, TNB said it expects unit electricity demand growth to remain stable on the back of expectations that the Malaysian economy will remain favourable in 2018.

“Continual implementation of IBR in RP2 (2018 – 2020) will also allow better earnings predictability for TNB as fuel costs risks are mitigated,” it added.

Shares of TNB fell six sen or 0.38% to RM15.70, giving the heavyweight blue chip a market capitalisation of RM88.96 billion.