BCG eyes 20 per cent growth in profit

BCG's AGM 2023

On April 28, BCG conducted its annual shareholders' meeting for 2023 in an online format. The company's business plan for 2023 was approved in the meeting, with the goal of achieving congress net revenue of VND6.924 trillion, and an after-tax profit of VND650 billion, on-year increases of 53 per cent and 20 per cent, respectively.

During the meeting, chairman of the Board of Directors at BCG, Nguyen Ho Nam, acknowledged that the group encountered roadblocks in 2022 due to conflicts resulting from fluctuations in global and domestic interest rates, skyrocketing inflation, and volatile capital flow. Accordingly, the company has flexibly adjusted its investment strategy by restructuring and implementing effective risk management measures.

Nam said that the group would place a premium focus on developing the energy, construction, real estate, agricultural production, and financial services sectors in 2023.

Luu Xuan Thuy, deputy general director in charge of infrastructure development at BCG, said that there will be a series of projects soon to be tendered, and highways in southern provinces are actively preparing for bidding. As a result, the company has identified significant potential for work on these projects, with many businesses also interested in participating.

“Tracodi, BCG's infrastructure developer subsidiary, which has the advantage of owning the right to exploit stones in the Mekong Delta region, will have the opportunity to directly supply products to projects in the area at a better price and with lower transportation costs than purchasing on the market,” Thuy added.

At the same time, the company will consider producing precast concrete components to elevate the value-added proposition for materials. Currently, Tracodi is working towards toll collection on highways, while also enhancing its operational competencies.

According to projections, upon the expansion of the expressway network in the Mekong Delta region over the next three to five years, Tracodi will partake in the developments.

The company plans to finalise the interconnection for a 135 MW ground-mounted solar power project, accelerate project development and mergers and acquisitions (M&A) activities for new projects to achieve the goal of 150 MW rooftop solar power, and prepare for the construction of a 550 MW wind power project.

Pham Minh Tuan, member of the Board of Directors, deputy CEO of BCG, assesses that the long-term prospects for renewable energy in Vietnam are significant.

“In addition, BCG Energy aims to increase its foothold in transmission, energy storage, smart grids, and the supply of green energy to industrial zones. However, the progress of project implementation is subject to the government's approval of the National Power Development Plan for 2021-2023 (Power Development Plan VIII, or PDP8), as well as new electricity tariffs,” Tuan said.

He announced that BCG Energy currently boasts several projects that may fall under the PDP8, and the company would abide by legal regulations to secure its right to develop and ensure it is profitable. At present, BCG Energy has a solar energy project in Phu My with a total capacity of 330 MW, but only 216 MW has previously enjoyed a Feed-in Tariff price, while the remaining 114 MW belongs to the transitional price category.

BCG Energy aims to mobilise capital for its energy sector through diverse channels within the domestic and international capital markets. The company is committed to exploring innovative strategies to raise funds for its energy segment, while keeping sustainability and environmental impact at the forefront of its endeavours.

Earlier April, BCG - SP Solar 1, a joint venture associated with BCG Energy, secured a Distribution of $31.5 million in a total credit line of up to $50 million from a consortium of foreign financial institutions, including DBS, OCBC, UOB, with a competitive interest rate.

In addition, BCG is also working with other international banks to refinance energy and infrastructure projects at lower costs.

"As the information is confidential, I am unable to disclose it here. However, we will announce the details soon, within the next 2-3 weeks," Nam said.

Nguyen The Tai, a member of the Board of Directors, stated that due to the volatile stock market conditions, the conglomerate has had to adjust its timeline. However, the plan remains ongoing, demonstrating the resilience and commitment of the company to its stakeholders.

BCG Land, the property subsidiary of the group, has already submitted its application and is expected to undergo an initial public offering in Q2/2023, a testament to the growth of the conglomerate's business segments.

In addition, BCG Energy is also in the process of preparing for a listing this year, reflecting the company's long-term vision and strategy.

“The plan for listing Nguyen Hoang Company has experienced some delay due to the current challenges faced by export markets. BCG remains determined to execute its plans and to continue generating value for its investors and the wider community,” Tai said.

BCG Energy secures $31.5 million syndicated loan package BCG - SP Solar 1, a joint venture between SP Group (Singapore) and BCG Energy (Vietnam), has just secured a Disbursement of $31.5 million in a total credit line of up to $50 million from a consortium of foreign financial institutions.