BCG to expand investment in renewable energy

Monday, Aug 10, 2020 20:00

BCG’s representatives answer questions from investors at its investors' meeting held online last week. — Photo courtesy of BCG

Bamboo Capital Group has a portfolio of wind power projects with a capacity of 652MW and plans to next build a 300MW plant in Ca Mau this year.

Pham Minh Tuan, the company’s vice chairman and chief operating officer, said wind plants need larger investments than solar farms and involve complex technological and construction processes.

To enable this, BCG Energy, a subsidiary of Bamboo Capital, has built up a team with good construction and implementation skills.

Speaking at an investors' meeting held online last week, Tuan said in the last two years BCG has successfully implemented several renewable energy such as BCG-CME Long An 1 and 2 solar power plants in Long An with a capacity of 140MW and the Phu My solar power plant with a capacity of 330MW besides real estate projects such as Malibu Hoi An, King Crown Village Thao Dien and King Crown Infinitive Thu Duc.

These projects are expected to fetch significant profits from 2021 onwards.

BCG plans more new projects to take advantage of the opportunities in these two areas.

In the renewable energy sector, BCG Energy expanded into the wind power sector with the 50MW BCG Soc Trang Wind and 100MW Aurai Vung Tau.

It reported VND522 billion (US$22.56 million) in net revenues and VND27 billion ($1.16 million) in after-tax profit in the first half of the year, a year-on-year increase of 30.1 per cent in revenues but a reduction of 64 per cent in profit year-on-year.

But despite the sharp fall in profits, the company believes it will be able to meet the profit target of $180 billion for the full-year.

Speaking at an online investors' meeting last week Tuan, said: “Like profit recorded in 2019, when we sold shares in real estate projects to other investors, the first half of the year saw the first phase of this transaction.

“The latter half of the year will see the second phase of the transaction and the handover of 17 villas in King Crown Village Thao Dien and a part of Malibu Hoi An project, which will ensure we complete our plan.”

He informed shareholders about a plan to pay 12 per cent dividends in cash annually.

“In past years we decided not to pay dividends because [the funds] were needed for reinvestment. Since 2015 the company has developed a many projects and been continually expanding its operational segments.

“This is a matter of ensuring investor confidence and illustrating our business outlook. It shows we are confident we will have a steady cash flow that promises annual dividends for the coming years.” — VNS

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