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.
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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.
