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ECONOMYINDUSTRY

Vietnam Electricity revises up 2017 pre-tax profit to US$350 million

Updated at Tuesday, 24 Jul 2018, 16:25
The Hanoitimes - Electricity demand in Vietnam is forecast to continue increasing at an average rate of 9% per annum, driven by rising industrialization, urbanization and affluence, according to Fitch Ratings.
Vietnam Electricity (EVN), the sole distributor of electricity in the country, posted a revised pre-tax profit of VND8.14 trillion (US$349.8 million) for 2017, VND1.5 trillion (US$64.48 million) higher than the previously announced figure and up 58% year-on-year, the power company said on its website. 
 
Illustration photo.
Illustration photo.
EVN's revenue in 2017 reached VND300 trillion (US$12.89 billion), up nearly 8% year-on-year, while the company contributed VND19.66 trillion (US$844.8 million) to the state budget, down 7.3% year-on-year, according to EVN's latest report on its business performance result in the 2015 - 2017 period. 

Last year, the state-run company set aside VND118.23 trillion (US$5.07 billion) for development investment, down from the previous number of VND133.36 trillion (US$5.72 billion) in 2016. 

By the end of 2017, EVN had invested VND126.1 trillion (US$5.45 billion) in nine wholly-owned enterprises, including VND43.5 trillion (US$1.86 billion) in three power generation companies, VND24.6 trillion (US$1.05 billion) in National Power Transmission Corporation, and the remaining in five power distribution companies. 

In 2018, EVN set revenue target of VND328.9 trillion (US$14.13 billion), up 8.8% year-on-year and VND117.84 trillion (US$5.06 trillion) for development investment. 

Additionally, two EVN projects, namely the Duyen Hai 3 Extension Thermal Power Plant and the Song Bung 2 Hydropower are expected to become operational in 2018. 

Electricity demand in Vietnam is forecast to continue increasing at an average rate of 9% per annum, driven by rising industrialization, urbanization and affluence, according to Fitch Ratings. 

EVN is currently the largest electricity generator in Vietnam, which owns and operates about 61% of the country's total installed generation capacity, followed by PV Power with 12%. 

Vietnam has a solid national electrification ratio of 99.2%, with the ratio reaching almost 100% in urban areas, stated the rating firm. According to management, all electricity consumers are billed regularly and collection rates are between 99% and 100% across EVN's five power distribution companies. 

In early June, Fitch Ratings assigned EVN a Long-Term Foreign-Currency Issuer Default Rating (IDR) of `BB` with a stable outlook, marking the first government-linked non-financial corporate in Vietnam rated by Fitch. 

The move means EVN is one step closer to issuing USD bonds and strengthening its financing capacity. 
Ngoc Thuy
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