Latest news with #TENAGANasionalBerhad
Malaysian Reserve
27-05-2025
- Business
- Malaysian Reserve
TNB delivers operational excellence while strengthening community impacts
TENAGA Nasional Berhad (TNB) has delivered a stable operational performance for the first quarter ended March 31, 2025 (Q1 2025), reinforcing its commitment to powering Malaysia's energy future and advancing rakyat-centric development. The Group's Q1 2025 performance reflected stable and sustained electricity demand, supported by ongoing domestic economic growth. Consumption from the commercial sectors grew by 5.1% largely driven by the rise of energy-intensive industries such as data centres. As Malaysia advances its ambition to become a regional digital hub, TNB continues to power critical infrastructure for the sector. As of first quarter 2025, the Group had energised 21 data centres and secured 43 supply agreements, with a total committed load of around 6.4GW, reinforcing its role as a key enabler of the nation's digital and industrial transformation. Additionally, the appreciation of the Ringgit against US Dollar, from RM4.73 in March 2024 to RM4.44 in March 2025 helped ease pressure on fuel and capital expenditures, with forex gains turning positive due to the stronger currency. This further supported TNB's financial resilience. TNB president/CEO Datuk Ir. Megat Jalaluddin Megat Hassan noted that TNB's focus remains firmly on sustaining stable performance while creating long-term value for shareholders. 'Through prudent cost management, reliable service delivery and a clear commitment to nation-building, we continue to provide consistent value despite ongoing global challenges,' he said. Expanding international RE footprint Complementing its domestic efforts, TNB expanded its international renewables portfolio with the development of its first solar greenfield project in Eastfields and Bunkers Hill, UK, slated to be commissioned in the second quarter of 2025. These projects are part of TNB's long-term strategy to secure foreign-denominated returns while supporting global energy transition goals. The returns and insights from these international ventures contribute to TNB's financial strength and energy transition efforts at home. This global-local synergy ensures that TNB's international success continues to translate into national benefit. Building resilient, inclusive energy ecosystem Building on these progress, TNB's Q1 performance reflects focused execution across its operational priorities while ensuring that growth is inclusive and aligned with national aspirations. 'Our financial strength is not an end in itself; it is the means through which we create meaningful impact for the rakyat. 'As we modernise the grid and expand our renewable energy portfolio, we are equally focused on ensuring that no community is left behind. This is the essence of our purpose: delivering progress that uplifts all Malaysians,' Megat Jalaluddin said. TNB remains committed to delivering long-term value by balancing operational excellence with purposeful nation-building. Empowering communities through strategic giving TNB aims to drive progress with positive social impact to the community by allocating 1% of its Profit After Tax (PAT) towards community development in social, education, environmental and sports. In Q1 2025 alone, TNB channelled more than RM45 million to support rakyat-centric initiatives across the country. TNB chairman Tan Sri Abdul Razak Abdul Majid said beyond powering the nation, TNB remains deeply committed to empowering future generations through education. 'Our programmes reflect a long-term investment in the communities we serve, ensuring no child is left behind in Malaysia's journey toward a more inclusive, knowledge-based economy,' he said. These strategic investments address broader societal needs, including: Education Initiatives: More than RM36 million was channelled through UNITEN and Yayasan Tenaga Nasional (YTN) sponsorships, benefitting over 20,000 students nationwide. Ceria ke Sekolah: RM1 million was provided for back-to-school support programmes in 40 locations, helping around 8,000 underprivileged children start the academic year with confidence. Ihya Ramadan: Approximately RM1.5 million was distributed during the Ramadan period, reaching over 50,000 individuals in Peninsular Malaysia and Sabah through food aid, community events and religious programmes. Wakalah Zakat Distribution: Almost RM4 million was disbursed to over 14,000 asnaf recipients, covering Projek Baiti Jannati, house repairs and rewiring, support for hardcore poor and 'Fisabilillah' causes including mosque and surau upgrades, education centre support and broader aid. Healthcare Support: Nearly RM300,000 was allocated to benefit 2,560 individuals, including equipment for Hospital Rehabilitasi Cheras and Hospital Pakar USM, patient support at Hospital Sultan Zainal Abidin and initiatives by Pertubuhan Prihatin dan Sokongan Kanser Wanita and World Cancer Day 2025. Disaster Relief: Over RM300,000 was deployed to assist more than 2,000 individuals affected by floods and storms across several states. Support for Indigenous Communities: RM110,000 in targeted aid was extended to over 1,200 Orang Asli individuals in Royal Belum and Slim River, Perak. Development of National Sports: More than RM2.1 million has been allocated to support the country's hockey development, reaching over 5,000 individuals through contributions to the Malaysian Hockey Confederation, training clinics, equipment provision and other sports-related initiatives. Sekolah Angkat Programme expanded to 50 schools As part of its long-term community development strategy, TNB significantly expanded its Sekolah Angkat TNB programme to cover 50 schools nationwide, compared to 36 previously. With an investment of about RM2.3 million, the programme delivers tailored interventions across academic support, digital learning, infrastructure upgrades and co-curricular development, including: Confirm AI with UNITEN (10 schools) Trust School for Peer Assisted Learning And Sharing (PALS) (6 schools) Thunderbolts TNB (7 schools) PINTAR TNB with Yayasan Pintar (13 schools) Sekolah Angkat MADANI (14 schools) These sustained efforts reflect TNB's commitment to building a future-ready Malaysia where progress is powered not only by reliable and sustainable energy, but also by inclusive opportunities that uplift communities, empower future generations and strengthen the nation's social fabric. Through its continued focus on operational excellence and purposeful investments, TNB remains dedicated to delivering impact that reaches beyond the grid. — TMR
Malaysian Reserve
22-05-2025
- Business
- Malaysian Reserve
Delivering value, empowering communities: TNB returns nearly RM3 billion to the rakyat
TENAGA Nasional Berhad (TNB) reaffirms its commitment to long-term value creation through disciplined capital management, operational resilience and community-focused investments that benefit shareholders and the nation alike. Reflecting this commitment, TNB's Board has declared a total dividend of 51 sen per share – the highest in four years – amounting to RM2.96 billion. This is in line with the company's dividend policy of a 60% payout ratio, and delivers direct financial benefits to millions of Malaysians, as more than 60% of TNB shares are collectively held by major government-linked investment companies (GLICs) such as Permodalan Nasional Berhad (PNB), the Employees Provident Fund (EPF), Khazanah Nasional Berhad, Kumpulan Wang Persaraan (KWAP) and Lembaga Tabung Haji (LTH). It also reflects TNB's consistent track record of sustaining dividend payouts at the upper end of our 30–60% policy range for the past eight years. TNB chairman Tan Sri Abdul Razak Abdul Majid noted that this dividend payout reflects TNB's commitment to delivering consistent, sustainable returns to its shareholders. 'These distributions ultimately reach millions of Malaysians, reinforcing national savings, retirement security and broad-based financial wellbeing,' he said at TNB's 35th Annual General Meeting (AGM) held at Pusat Konvensyen Leo Moggie, TNB Headquarters in Kuala Lumpur on May 22, 2025. In 2024, TNB also contributed RM874.7 million in tax and zakat, strengthening public finances and supporting community wellbeing nationwide. Advancing inclusive growth through social investment TNB's commitment to nation-building goes beyond financial returns. Through targeted programmes in education, community development and wellbeing, the company channels long-term investments into meaningful outcomes. In 2024, TNB allocated RM140.9 million in contributions and sponsorships across areas such as education, sports and community wellbeing and environment. TNB's initiatives aim to uplift underserved communities, bridge opportunity gaps, and foster social cohesion. Through scholarships, educational programmes, and rural outreach, the company empowers future generations and drives long-term impact. These efforts reflect TNB's commitment to shared prosperity and nation-building beyond its core utility role. As part of its rural outreach efforts, TNB advanced Phase 11 of the Village Street Lighting Programme in 2024, installing over 14,000 energy-efficient LED lights in underserved areas, enhancing safety, connectivity and economic inclusion. In the lead-up to Langkawi International Maritime and Aerospace Exhibition (LIMA) 2025, a strategic platform for collaboration between the government and industry players, TNB continues to play a crucial behind-the-scenes role in ensuring a stable and reliable electricity supply in Langkawi. Driving operational excellence with purpose While TNB's social investments uplift communities, its core strength lies in the rigorous execution of its operational and strategic priorities. TNB president/CEO Datuk Ir Megat Jalaluddin Megat Hassan affirmed the company's focus on sustaining strong returns while investing in the systems and communities that support national development. 'Our strategy is clear — we aim to maintain robust performance while generating long-term value for the rakyat through responsible returns and meaningful impact. 'By strengthening the reliability of our services, managing costs effectively, and anchoring our efforts in nation-building, we continue to deliver steady value even amid global uncertainties,' he said. He added that this disciplined approach to resilience and responsible leadership is also reflected in how TNB continues to deliver value, both to its shareholders and to the broader economy. Staying the course with focus and purpose Despite global headwinds and evolving industry dynamics, TNB's fundamentals remain strong. The company continues to invest in grid reliability, digital capabilities and operational excellence, ensuring that it remains agile and responsive to future challenges. These translate into fewer power disruptions, faster service recovery and more efficient energy management, ultimately ensuring Malaysians enjoy reliable, secure and affordable electricity. TNB's strong performance also benefited from a confluence of favourable macroeconomic conditions, including a strengthening ringgit and 5.1% national GDP growth, coupled with prudent cost management and operational efficiency. The improving macro environment helped spur business activity and consumer confidence, which in turn supported demand growth for electricity across industrial, commercial and residential sectors. These conditions collectively reinforced TNB's resilience in a dynamic operating environment. Malaysia's record-high approved investments of RM378.5 billion in 2024, as reported by the International Trade and Industry Ministry (MITI), also translated into stronger industrial and commercial electricity demand. In this respect, TNB believes it has played a role in sustaining investor confidence and driving long-term economic growth by ensuring a stable and reliable energy infrastructure. These achievements reflect not only TNB's operational excellence but are also aligned with national aspirations of delivering reliable infrastructure, promoting inclusive growth and accelerating the energy transition. It is also in line with the Madani Economy framework for shared prosperity, sustainability and social wellbeing. Delivering tangible progress across priority areas In 2024, TNB invested RM11.2 billion in CAPEX to accelerate grid modernisation and drive the national energy transition. This includes key upgrades that support the integration of renewable energy and strengthen network resilience across Peninsular Malaysia. The company also maintained a high Customer Satisfaction Index (CSI) score of 87%, reflecting sustained efforts to enhance service quality and customer experience. Capping off a year of operational excellence, TNB's MSCI ESG rating was upgraded to 'A', cementing the group's leadership in sustainability. The rating reflects significant strides in reducing carbon emissions, improving water efficiency and expanding renewable energy adoption. This ESG upgrade not only affirms TNB's commitment to responsible business practices but also aligns with Malaysia's broader sustainability ambitions. It also strengthens investor confidence, supports the country's net-zero aspirations and demonstrates TNB's environmental leadership. — TMR
