KUALA LUMPUR, Malaysia (July 10): Tenaga Nasional Bhd’s shares were trading at RM9.69 last Friday, approaching multi-year lows, while its foreign shareholding was around 12.1% at the end of last month. A convergence of factors loom over the utility group, as it must manage stakeholders’ expectations as a GLC and as a public-listed firm in the face of the Covid-19 outbreak, aside from the cautious sentiment produced by recent political developments.
Future policies, such as the Regulatory Period 3 (RP3) and the Malaysia Electricity Supply Industry 2.0 (MESI 2.0) study, are still being discussed with regulators. With the recent political upheavals, investors are looking for more clarity on the company’s future earnings and role in the shifting industrial landscape.
As ESG (environmental, social, and governance) awareness grows, Tenaga is also catching up in the worldwide transition to renewable energy, which Datuk Baharin Din, the company’s newly-appointed president and chief executive officer, views as a growth lever.
Baharin discusses Tenaga’s carbon-heavy portfolio and his views on the company’s duties in the face of growing fuel costs and demand challenges in his first exclusive conversation with The Edge.
“We have demonstrated that we are a reliable professional entity capable of fulfilling the rakyat’s aspirations.”
Tenaga is in favor of addressing climate change. We are very aware of the ESG trend. “It’s a transition issue; we want to make sure the approach is holistic, realistic, and balanced,” Baharin adds in a virtual interview.
Meanwhile, the company is focusing on expanding its non-regulated operations, particularly in the telecoms industry, where it has idle fiber assets. Its prospects, according to Baharin, transcend beyond broadband.
“In the value chain, Tenaga’s presence will be quite crucial for the feasibility of any infrastructure development,” Baharin says of the venture’s potential.
What will this utility look like in the future in order to keep investors interested? More information can be found in the July 12 issue of The Edge Malaysia weekly./n
