Top FACTS from Tenaga (TNB) Annual Report 2019

TNB is being complained for over-charging its consumers, is the news for this week's headline. While people are concerning about the fares fluctuation charging on them, let's take a look on their business model.

Facts 1:

 Tenaga introducing the idea of " Maverik Future Home". With zero dependency on any electricity distributor, Tenaga seems like going to take on convert from seller of electricity to solar panels' distributor!

 Facts 2:

Past Year Dividends

Excluding 50 cents of special dividend distributed in 2019 annual report, its dividend yield will be 3.75%.

Year	Dividend Yield (%)	Stock price used
2015	2.6	11.15
2016	2.2	14.54
2017	4.3	14.18
2018	3.9	13.67
2019*	3.75	13.33

2019* is excluding special dividend

Government has set a goal for TNB to hit which is, leveling up the proportion of renewable energy to 25% from current 3.7%.

We are having "cheaper" kWh by comparing with our neighboring countries, well, may be it is because our purchasing power not strong enough to cover the bill? 

Facts 3:

4 of the Board of Directors out of 11 are assigned by Khazanah and ministry of finance, specifically the chairman and CEO. Six members of the B.O.D took a directors fee with equivalent 0.3% proportion in terms of profit after tax. No comments.

Facts 4:

In order to reduce the consumers' burden of electricity bill, 942 million is deployed for the electricity discount for April to June at Peninsular M'sia. Acoording to the reports from media, KWIE funds will pay 842 million,while Tnb will need to spend another 100 million, accumulated 250 million extra expenditure during Covid-19 . According to the financial specialist, the extra expenditure will not be  impacting Tnb's financial place heavily ,as this expenditure will help to reduce payment in tax.

Price when China Covid-19 outbreak : roughly Rm12.9 per share

13 Jan 2020

Price on MCO being announced: Rm11.24 per share

18 Mar 2020

Price as at 23 Jun 2020: Rm11.88 per share

Khazanah being the largest shareholeders with share proportions of 27%, on the other hand, EPF is holding 16% .

Well, Interim Single Tier for 2019 is 30 cents, comparing to 30.27 cents on 2018; whereas the final single tier dividend for 2019 is 20 cents, comparing to 23 cents on 2019. What's special is Tenaga for this year, tenaga distributing 50 cents of special dividend to its shareholders. (In support of governement's conducting fiscal policy to overcome Covid-19 impact. )

Earning per share is rising as comparing from past year.

Revenue rose 1.1%, an increment of 423.5 million from past year. EBITDA increased 477 million, posting 9.6% ramping up from year of 2018. Profit spike up to 700 million, with 18.7% increment.

27/6/2020

11:46am