Vietnam’s energy giant sets ambitious revenue of $1.2 billion
The PetroVietnam Power Corporation (PV Power) aims to earn VND28.4 trillion of revenue (US$1.2 billion) and pre-tax profit of nearly VND1.55 trillion this year.
Last year, PV Power's total commercial power output reached nearly 19.2 billion kWh. The group also earned more than VND30.2 trillion of revenue and pre-tax profit of VND2,875 billion.
In the first four months of 2021, PV Power recorded revenue of more than VND10.2 trillion from an output of 6,405 million kWh. Despite impact of the Covid-19 pandemic, its electricity output in April was higher than that of March 2021. Specifically, Vung Ang 1 Power Plant completed 103% of the plan while Dakđrinh Hydropower Plant surpassed its plan by 45%. If this pace can be maintained, the group’s billion-dollar revenue goal is feasible.
According to PV Power’s Q1/2021 financial report, its after-tax profit reached VND901 billion, an increase of VND240 billion or 36.3% over the same period last year.
PV Power's assets are on the rise. At the end of the first quarter, its total assets hit VND47,212 billion, up by VND3,509 billion or 8% compared to the early year. In April, the group had an additional VND2,871 billion, accumulated VND10,213 billion.
PV Power is one of the leading power producers in Vietnam. The group has five operating power plants, two that are under construction (Nhon Trach 3 & 4 power plants) with a total installed capacity of about 1,500 MW. The group is also preparing for the Ca Mau 3 power plant project.
In early May, credit rating agency Fitch Ratings for the first time assigned PV Power a Long-Term Foreign-Currency Issuer Default Rating (IDR) of "BB" with a positive outlook. The rating is on par with that of Vietnam and major groups such as the Vietnam National Oil and Gas Group (PetroVietnam) and Vietnam Electricity (EVN).
PV Power is the first Vietnamese power producer and the first unit of PetroVietnam to be assigned an international credit rating. With this rating from Fitch, it is expected that PV Power will have a greater capacity to raise capital in the international market.
Good business results in the first four months of the year helped the group’s share (POW) price at a high level in the past year. PV Power shares used to reach a peak of nearly VND15,000 per share. Currently, it is priced VND12,000 per share, with 14-16 million shared traded each session.
It is predicted that in 2021, shares of power producers such as Pha Lai Thermal Power (PPC), Hai Phong Thermal Power (HND), and Nhon Trach 2 Petroleum Power (NT2) will be “hot” because many power companies will offer attractive dividends of 6-10% compared to the current market price.
Demand balance has always been an important input for the development planning of the power industry. It is necessary to carefully calculate future electricity demand to balance supply and demand and ensure energy security for the country.