What contributed to the 3.9 per cent revenue increase for TNB in Q1?

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Higher electricity sales drove TNB's Q1 revenue increase

Tenaga Nasional Bhd (TNB) recorded a 3.9 per cent increase in revenue for the first quarter ended March 31, 2023, reaching RM12.63 billion compared to RM12.15 billion in the same period the previous year. This growth was primarily attributed to an increase in electricity sales.
Rise in Electricity Sales

The primary driver for TNB's revenue growth in the first quarter of 2023 was a rise in the volume of electricity sold. This indicates a continued demand for power, contributing directly to the utility company's top-line figures.
Revenue Performance Compared to Previous Year

In the first quarter of 2023, TNB's revenue stood at RM12.63 billion. This represents a notable increase from the RM12.15 billion generated during the corresponding quarter of the prior year, signifying a positive trend in the company's financial performance.
Operational Context and Expenses

While revenue increased, TNB also experienced a rise in operating expenses. These expenses grew by 7.5 per cent to RM14.44 billion from RM13.43 billion in the same period last year. This escalation was mainly due to higher generation costs, which consequently led to a greater Imbalance Cost Pass-Through (ICPT) under-recovery recognized during the quarter. Despite these increased costs, the company saw a net reversal in impairment of financial instruments amounting to RM48.7 million due to improved collection trends.

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What contributed to the 3.9 per cent revenue increase for TNB in Q1?

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