PV Power wants to divest completely from EVN International

Thursday, Mar 17, 2022 17:06

A view of Nhon Trach 1 and Nhon Trach 2 power plants in Dong Nai. — Photo pvpower.vn

PV Power (POW) has just announced approval for the plan to transfer its shares in EVN International JSC (EIC).

Accordingly, PV Power plans to divest more than 2.8 million EIC shares, equivalent to 7.85 per cent of capital.

The transaction is expected to be done by order matching method on the Ha Noi Stock Exchange (HNX).

EVN International operates in the field of electricity generation and distribution.

In the shareholder structure of EVN International, Power Generation Corporation 1 is the largest shareholder holding more than 26 per cent of capital, while Pha Lai Thermal Power JSC is the second-largest shareholder with more than 19 per cent capital. The remaining shares belong to a number of other institutional and individual shareholders.

PV Power has also announced to divest all 30 million VLP shares of Viet Lao Electricity JSC, reducing its ownership from 8.64 per cent to 0 of charter capital.

The divestment at the two enterprises was in line with expectations from BSC Securities Company in its recent update report.

BSC said that in 2021, PV Power divested 19.9 million shares, equivalent to 51.6 per cent of PVM shares of PVMachino JSC.

The securities firm believed that this year the company may continue to divest capital in Viet Lao Electricity JSC and EVN International. The amount of capital contributed in the two enterprises is VND320 billion (US$14 million) and VND28.8 billion, respectively, according to PV Power’s financial statements for the fourth quarter of 2021.

Revenues from the divestment are expected to be an additional financial source to help PV Power have enough resources to deploy projects such as Nhon Trach 3 and Nhon Trach 4.

Nhon Trach 3 and 4 power plants, with a total capacity of 1,500 MW, are expected to start construction in the first quarter of 2022 and begin to operate in 2024-2025. This is the future growth engine for PV Power and is also in line with the trend of shifting from coal power to liquefied natural gas (LNG).

In February, PV Power's output reached 890.3 million kWh. For the first two months of the year, PV Power has achieved an output of 2.082 billion kWh.

Its revenue reached VND1.56 trillion last month, exceeding 20 per cent ​​of the monthly plan but down 25 per cent over the same period last year.

In the first two months of the year, the company’s revenue fell 19 per cent on-year to VND3.72 trillion. The largest contributors to the company’s revenue were Ca Mau 1 and 2, Nhon Trach 1 and 2 power plants.

In 2022, PV Power sets a target of total expected electricity output of 13.9 billion kWh, resulting in total revenue of VND24.24 trillion and profit before tax as planned at VND1.01 trillion. Compared to last year, this plan’s target declines by 56 per cent. VNS

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