KUALA LUMPUR: Tenaga Nasional Bhd said earnings improved by more than a quarter in the second quarter, boosted by stronger electricity demand by industrial and commercial users.

       Net profit in three month ended June 30 rose 26% to RM821.5mil, or 14.4 sen a share from RM653.3mil, or 11.5 sen a share made a year ago.

       Sales increased 14% to RM12.44bil, TNB said in a filing with Bursa Malaysia today.

       TNB has declared an interim dividend payout of 22 sen a share.

       The higher revenue, TNB said, was mainly due to the increase in sales of electricity as a result of higher consumption from commercial and industrial customers as certain businesses are allowed to operate instead of full economic closure in the last corresponding period.

       This, in turn, boosted its profits.

       During the year, the Malaysian economy performed better in the second quarter by recording a growth of 16.1% compared to negative 0.5% in the first quarter.

       The growth was mainly driven by the improvement in domestic demand and continued robust exports performance.

       "This is consistent with the demand growth recorded by TNB of 4.4% for the first half of the year where recovery was registered in the industrial sector," the electricity company said.

       However, towards the end of the second quarter there was a slowdown in the economy resulting from the reimposition of stricter containment measures nationwide due to the resurgence of Covid-19 cases.

       "Amid the developments surrounding the pandemic, the Group will continue to take prudent measures in terms of its operational and financial requirements to ensure it remains resilient," TNB said.