EVN reports loss of $789.6 million in 2014

Wednesday, Jan 14, 2015 09:49

Electricity of Viet Nam has recorded a negative growth this year. — VNA/VNS Photo Ngoc Ha

HA NOI (Biz Hub) — Electricity of Viet Nam (EVN) reported a significant loss of VND16.8 trillion (US$789.6 million) in 2014, despite their increasing retail electricity tariffs, said Pham Le Thanh, EVN's general director.

Speaking at a conference in Ha Noi yesterday to review the group's business in 2014 and launch plans for 2015, Thanh said the loss was due to VND8.8 trillion ($413.6 million) from foreign exchange fluctuations in 2009-10, along with an additional VND8 trillion ($376 million) last year.

He added that the 2014 loss was due to increasing coal prices and water taxes, as well as spending on the construction of power grids in rural areas.

"The loss has been a huge challenge for EVN this year, as we have been unable to resolve it," he said, adding that the group has continued to optimise costs to improve productivity.

EVN's revenues in 2014 were VND196.3 trillion ($9.3 billion), increasing 13 per cent over 2013. Also, after-tax profits last year were estimated at VND300 billion ($14.2 million), while its return on equity (ROE) was 0.2 per cent.

He noted that one of its achievements last year was to ensure electricity supplies for production, businesses and residential homes.

Also, its power production and purchases reached 142.25 billion kWh, posting an 11 per cent year-on-year increase. Some 2.8 billion kWh was saved last year.

The group invested VND125.4 billion in 2014 for the building of electricity generation and the grid. This was 28 per cent higher than in 2013. Further, EVN completed divestments at Land Sai Gon Real Estate Company, EVN Land Central Company and a part of its non-core investments at EVN Finance Company, with total capital of VND691 billion ($32.9 million).

It also completed plans for equitisation at power generation companies and submitted these to the Ministry of Industry and Trade for approval. Additionally, the general director said EVN targeted power outputs of 156.9 billion kWh this year, a 10 per cent increase over last year.

Officials added that the average retail price for electricity is to be set at VND1,515 per kWh.

It added that power production this year will have favourable conditions, as total electricity generation will reach 34,000MW. EVN has targeted to complete divestment at An Binh Bank, EVN Finance Company and An Binh Bank Securities Company (ABS). It will also submit equitisation plans for GENCO 3 to the Prime Minister. —  VNS

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