EVENING 5: TM books highest quarterly profit since 4QFY2011

The Edge TV

In today’s edition of Evening 5 — Telekom Malaysia logs RM569 million in net profit in 2QFY2023, its highest since 4QFY2011. Meanwhile, the Court of Appeal dismisses ex-PM Datuk Seri Najib Razak's bid to stay the 1MDB-Tanore trial.

Transcript

00:00 [Music]

00:04 Telekom Malaysia said its second quarter FY20-23 net profit climbed 50.4% to RM568.74 million,

00:13 its highest quarterly numbers since the fourth quarter of FY2011,

00:18 when it registered RM598.3 million in earnings.

00:22 According to the Telcos' Borsa filing, the higher earnings were due to lower net finance cost

00:27 and the recognition of tax credits from the utilisation of previously unrecognised tax losses.

00:34 Revenue rose marginally to RM3.1 billion from RM3.09 billion in the second quarter of FY2022,

00:41 as TM saw a jump in fixed broadband subscribers and higher demand for domestic and international

00:47 data services. The company declared a dividend of S$0.095 per share. For the first half of FY2023,

00:55 net profit grew 25.2% to RM898.83 million, while revenue inched up 1.1% to RM6.05 billion.

01:04 Going forward, Group CEO Amar Huzaimi Muhammad Dures said TM expects to face a more challenging

01:11 marketplace but is confident in its overall positive financial performance. Shares in TM

01:17 closed unchanged at RM5.06 today, with a market capitalisation of RM19.34 billion.

01:24 Tenaga National Book says 62.4% fall in second quarter FY2023 net profit to RM327.9 million,

01:38 mainly due to negative fuel margins and foreign exchange translation losses.

01:43 Revenue, however, rose marginally by 3.8% to RM13.32 billion on increased sales of electricity

01:51 amid higher demand. No dividend was declared for the quarter under review. For the cumulative six

01:57 months, TNB's net profit fell 24.7% to RM1.33 billion, while revenue grew 3.8% to RM25.95

02:06 billion. Moving forward, TNB expects a reasonable performance for the year 2023 and will continue

02:13 to remain cautious on its earnings exposure to fuel prices and currency volatility. It said it

02:18 will continue to take prudent measures in managing its operational and financial requirements to

02:24 ensure its resilience. Shares in TMB closed 0.3% lower to RM9.97 today, giving the group a market

02:32 capitalisation of RM57.7 billion. The Appellate Court has dismissed former Prime Minister Dato'

02:44 S. Rajaprasad's bid to stay the 1MDB Tenor trial, pending the disposal of his appeal to recuse

02:50 trial judge Dato' Colin Lawrence-Sekerah. In delivering their unanimous decision,

02:55 a three-member panel led by Court of Appeal Judge Dato' Hadariah Syed Ismail said the trial was in

03:02 its advanced stage and that there were no special circumstances or compelling reasons to grant a

03:08 stay. In the court's view, he said public interest demands that the case proceed, and so Najib's

03:14 application was dismissed. This means the trial will continue as scheduled next Monday to Wednesday,

03:20 with former Bank Negara Malaysia Governor Tan Sri Dr Zaty Akhtar Aziz taking the witness stand.

03:26 Najib's lead counsel Tan Sri Muhammad Shafi Abdullah told the press today that the defence

03:31 will be filing a fresh application in the federal court to stay the trial.

03:38 Petronas' gas booked a 22% jump in second quarter FY2023 earnings to RM485.37 million,

03:48 lifted by higher gross profit coupled with higher share of profit from joint venture companies.

03:55 The improvement was also attributed to higher interest income from fund investments

03:59 and lower exposure from Forex movement. Top line rose 8.8% to RM1.62 billion,

04:06 driven by revenue from the utilities segment on the back of higher product prices. It proposed

04:12 a dividend of 16 cent per share. On prospects, Petgas expects its performance this year to

04:18 remain healthy, underpinned by stable earnings contracts and sustained operational excellence,

04:24 although the movement of gas prices may impact the group's full-year results.

04:28 The group said its exposure to volatility of foreign exchange has been reduced

04:33 through the full early settlement made on the lease liabilities for floating storage units

04:38 at the LNG regasification terminal in Sungai Udang Melaka. At the close, Petgas' shares

04:44 traded up 0.1% to RM17.6, valuing the group at RM33.76 billion.

04:57 Afan Bank registered a second-quarter FY2023 net profit of RM113.23 million,

05:03 down 22.9% from a year prior as net interest income and Islamic banking income fell

05:10 amid higher allowances for impairments losses and overhead expenses.

05:15 Quarterly revenue fell by 12.8% to RM504.86 million. According to the bank's filing with

05:22 Bursa Malaysia, that takes its first-half FY2023 earnings to RM262.21 million, down 9.5% as revenue

05:32 for the period fell 9.8% to RM999.15 million. On its outlook, Afan Bank expects the domestic

05:40 banking sector to remain stable, despite recent negative events affecting the lending sector in

05:46 some advanced economies. Its extringent capital and liquidity requirements ensure domestic

05:52 banks are able to withstand severe macroeconomic and financial shocks, and that while it continues

05:58 to pursue its growth targets for 2023, it remains vigilant towards the risk of deteriorating asset

06:04 quality in order to ensure capital preservation and achieve sustainable profitability.

06:10 At the close, shares in Afan Bank were down 1.5% at RM1.92 each, valuing the group at RM4.51 billion.

06:18 It is expected to close at the end of the year.

06:20 [Music]

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