TNB saw its share price jump 7.7% from 13.98 to 15.06 as of midday today (Sept 4), this marks the highest its been on a year to date basis.

Investors are impressed with the utility giant's recent earnings announcement with record with core net profit for 2Q24 reaching RM1.493 billion, marking a significant 58% year-on-year increase and a 39% quarter-on-quarter rise. This brought its first half of FY24 core net profit to RM2.564 billion, representing 70% and 65% of the full-year estimates by the company's projections and consensus, respectively.

Analysts say the results were bolstered by better-than-expected performance from its generation segment and reduced system losses.

The improved financial performance were largely attributed to a 3.5% quarter-on-quarter increase in generation units and a corresponding 3.8% growth in demand. The proportion of coal-generated electricity increased to 57.2% during the quarter, driven by a slight decline in coal prices.

However, under-recoveries of generation costs did rise to RM2.82 billion from RM2.35 billion in the previous quarter. Regulated revenue showed a surplus of RM739 million due to higher realised tariffs and stronger demand.