Tenaga Nasional Outlook Hit by Higher Electricity Costs

Dow Jones
Sep 21

0132 GMT - Tenaga Nasional is expected to bear an additional 120 million ringgit-150 million ringgit in electricity costs from September to December, TA Securities analyst Hafriz Hezry says in a note. The costs stem from the government's decision to raise the threshold for fuel surcharges and other electricity charges to 800kWh a month from 600kWh during the three-month period. The higher costs could reduce Tenaga's 2026 expected net profit by about 2.0%-2.5%, while the impact beyond December remains unclear, he says. He expects regulatory risks to weigh on Tenaga's near-term share performance, particularly if fuel prices remain elevated into 2027. TA Securities downgrades Tenaga's rating to hold from buy, cuts target price to 13.80 ringgit from 18.00 ringgit. Shares are 0.9% lower at 12.92 ringgit.

 

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