PetroVietnam Power Corporation (PV Power) recorded a consolidated net profit of VNĐ780 billion (US$34.2 million) in the first quarter, a growth of 30.6 per cent against the same period of last year
Engineers operate equipment at Nhơn Trạch 2 Power Corporation, a member unit of PetroVietnam Power Corporation (PV Power). — VNA/VNS Photo Huy Hùng
Of this, the post-tax profit earned by the parent company was over VNĐ675 billion, up by 37 per cent year-on-year.
PV Power reported a consolidated revenue of VNĐ8.4 trillion during the period, up by 12 per cent against last year, most of which came from sales of electricity worth VNĐ8.1 trillion, up by over VNĐ1 trillion compared to the first quarter of 2017 and accounting for 97 per cent of the total revenue.
The cost of goods sold in the first quarter was VNĐ7 trillion, bringing the gross profit of the company to VNĐ1.35 trillion, corresponding to a gross profit margin of 16.1 per cent, which was significantly higher than 2017’s figure of 14.8 per cent.
During the period, PV Power conducted capital transfers generating profits of VNĐ3.9 billion and paid dividends of VNĐ10.7 billion. The interest income paid by lender PVCombank was VNĐ287 million. However, its financial income still fell by 13 per cent year-on-year to VNĐ68 billion due to the difference in exchange rate and lower deposit interest rates.
Other expenses, such as selling expenses and corporate management expenses, saw little change compared to the same period last year, reaching VNĐ4.1 billion and VNĐ110.4 billion, respectively.
At the end of the first quarter, PV Power’s total assets reached VNĐ63.4 trillion, while its liabilities were VNĐ34.9 trillion.
According to Viet Capital Securities (VCSC), rising electricity demand in the south will ensure high capacity of 65-70 per cent for PV Power. At present, all of PV Power’s gas-powered plants are in the south, which is suffering from a severe power shortage.
Electricity consumption in Đồng Nai province and Mekong Delta is expected to grow by 11.5 per cent and 13.8 per cent per year, respectively, during 2016-20. Electricity consumption in the north-central region, where the Vũng Áng 1 coal plant is located, is also expected to grow by 11.1-14.8 per cent per year.
At the end of April, the Prime Minister approved PV Power to invest in the Nhơn Trạch 3 and Nhơn Trạch 4 thermal power plants, which will increase its total capacity by 1.5GW. If PV Power is approved to build Kiên Giang 1 and 2 plants, it will increase its capacity by 71 per cent by 2023. Other power plants, such as Sơn Mỹ and Miền Trung, will also help increase PV Power’s capacity by 52 per cent, and these new plants will provide an additional growth momentum for PV Power in future.
VCSC predicts that PV Power’s after-tax profit in 2018 will grow by nearly 13 per cent due to the strong recovery of Nhơn Trạch 1 and Nhơn Trạch 2 power plants after reparation and the 19 per cent hike in pre-tax profit of Cà Mau Power Plant after maintenance.
PV Power’s shares (with code POW) are being traded around VNĐ14,400 ($0.63) per share on the Unlisted Public Company Market.
