Tenaga Nasional Berhad (TNB) Company Profile

Background

Tenaga Nasional Berhad (TNB) is Malaysia's largest electricity utility and a leading utility company in Asia. Established in 1949, TNB is headquartered in Kuala Lumpur and is publicly listed on the Main Board of Bursa Malaysia. The company is dedicated to delivering reliable and efficient electricity, serving approximately 10.6 million customers across Peninsular Malaysia, Sabah, and the Federal Territory of Labuan. TNB's mission is to "Brighten Lives Through Innovative and Sustainable Solutions Towards a Better World," with an aspiration to be a leading provider of sustainable energy solutions both domestically and internationally.

Key Strategic Focus

TNB's strategic focus encompasses:

• Diversified Energy Generation: Operating a mix of thermal (coal, gas, and oil), hydroelectric, and renewable energy power plants to meet Malaysia's energy demands.

• Renewable Energy Expansion: Aiming to lead in ASEAN's renewable energy sector, TNB has secured 237 MW of renewable energy capacity globally and is investing in solar, wind, and hydro projects.

• Grid Modernization: Developing a future-ready grid to enhance reliability and accommodate renewable energy integration.

• Customer-Centric Services: Enhancing customer experiences through digitalization and innovative energy solutions.

• International Ventures: Expanding its footprint in countries such as the United Kingdom, Kuwait, Turkey, Saudi Arabia, and India, focusing on renewable energy projects and strategic partnerships.

Financials and Funding

As of the fiscal year ending June 2024:

• Revenue: RM53.07 billion

• Net Profit: RM2.77 billion

• Total Assets: RM204.74 billion

• EBITDA Margin: 35.1%

• Capital Expenditure (CAPEX): RM10.25 billion

• Return on Assets: 1.7%

• Market Capitalization: RM58.10 billion

Pipeline Development

TNB's key projects and initiatives include:

• Renewable Energy Projects: Developing large-scale solar (LSS) plants, such as the TNB Sepang Solar and TNB Bukit Selambau Solar Dua, and initiating floating solar plants at reservoirs like Chenderoh, Temenggor, and Kenyir.

• International Renewable Ventures: Constructing two greenfield solar power plants totaling 102 MWp in the UK and acquiring a 276 MWp operational solar power plant in Ireland.

• Carbon Capture & Storage (CCS): Collaborating with PETRONAS and Toshiba Energy Systems & Solutions Corporation to explore CCS implementations in thermal plants.

Technological Platform and Innovation

TNB's technological advancements include:

• Hydro Dam Catchment Area Monitoring System: An internally developed tool for planning, managing, and monitoring hydro dam catchment activities.

• Industrial Internet-of-Things (IIoT) Solutions: Implementing advanced IIoT solutions for Continuous Ship Unloader (CSU) centers, integrating wireless vibration and temperature monitoring systems.

Leadership Team

• Megat Jalaluddin bin Megat Hassan: President and Chief Executive Officer

• Nazmi bin Othman: Chief Financial Officer

• Amir Mahmod Abdullah: Chief Procurement Officer

• Azlan bin Ahmad: Chief Information Officer

Competitor Profile

Market Insights and Dynamics

The Malaysian electricity market is characterized by a mix of government-linked companies and private entities. TNB holds a dominant position, but the market is witnessing increased competition, especially in the renewable energy sector.

Competitor Analysis

• YTL Power: Engages in power generation, water and sewerage services, and telecommunications. It operates in Malaysia, Singapore, Indonesia, and Australia, with a revenue of approximately $4.9 billion and 5,178 employees.

• Malakoff Berhad: Specializes in thermal power generation and environmental management, with a revenue of around RM9.1 billion and 3,294 employees.

• MMC Corporation Berhad: A utility and infrastructure company involved in ports and logistics, energy and utilities, engineering, and industrial development, generating revenue of about RM4.9 billion.

Strategic Collaborations and Partnerships

TNB's significant collaborations include:

• ASEAN Power Grid: Participating in initiatives to connect ASEAN countries' power grids for improved energy security and efficiency.

• Cross-Border Projects: Engaging in projects with neighboring countries to enhance regional energy cooperation and grid stability.

• International Investments: Investing in GMR Energy Limited (India), Vortex Solar Investment (UK), and GAMA Enerji (Turkey) to expand its renewable energy portfolio.

Operational Insights

TNB's operational strengths include:

• Comprehensive Energy Solutions: Offering end-to-end services from generation to distribution, ensuring reliability and efficiency.

• Sustainability Commitment: Actively investing in renewable energy and sustainability initiatives to align with global energy transition trends.

• Technological Innovation: Implementing advanced technologies to enhance operational efficiency and customer service.

Strategic Opportunities and Future Directions

TNB's future strategies involve:

• Renewable Energy Leadership: Aiming to be the ASEAN leader in renewable energy by expanding its portfolio and investing in innovative projects.

• Grid Modernization: Developing a resilient and smart grid to support renewable energy integration and enhance service reliability.

• Digital Transformation: Leveraging digital technologies to improve customer engagement and operational efficiency.

• International Expansion: Strengthening its presence in international markets through strategic investments and partnerships.

Contact Information

• Website: www.tnb.com.my

• Social Media:

• Facebook: www.facebook.com/TNBCareline

• Twitter: twitter.com/Tenaga_Nasional

• Instagram: www.instagram.com/tenaga_nasional/

• LinkedIn: www.linkedin.com/company/tenaga-nasional-berhad