PV Power Q1 profit up 37%

Wednesday, May 09, 2018 09:42

Engineers operate equipment at Nhon Trach 2 Power Corporation, a member unit of PetroVietnam Power Corporation (PV Power). — VNA/VNS Photo Huy Hung

PetroVietnam Power Corporation (PV Power) recorded a consolidated net profit of VND780 billion (US$34.2 million) in the first quarter, a growth of 30.6 per cent against the same period of last year

Of this, the post-tax profit earned by the parent company was over VND675 billion, up by 37 per cent year-on-year.

PV Power reported a consolidated revenue of VND8.4 trillion during the period, up by 12 per cent against last year, most of which came from sales of electricity worth VND8.1 trillion, up by over VND1 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 VND7 trillion, bringing the gross profit of the company to VND1.35 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 VND3.9 billion and paid dividends of VND10.7 billion. The interest income paid by lender PVCombank was VND287 million. However, its financial income still fell by 13 per cent year-on-year to VND68 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 VND4.1 billion and VND110.4 billion, respectively.

At the end of the first quarter, PV Power’s total assets reached VND63.4 trillion, while its liabilities were VND34.9 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 Dong 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 Vung Ang 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 Nhon Trach 3 and Nhon Trach 4 thermal power plants, which will increase its total capacity by 1.5GW. If PV Power is approved to build Kien Giang 1 and 2 plants, it will increase its capacity by 71 per cent by 2023. Other power plants, such as Son My and Mien 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 Nhon Trach 1 and Nhon Trach 2 power plants after reparation and the 19 per cent hike in pre-tax profit of Ca Mau Power Plant after maintenance.

PV Power’s shares (with code POW) are being traded around VND14,400 ($0.63) per share on the Unlisted Public Company Market. — VNS

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