EVN confirms profit for 2016

November 10, 2016 | 12:09

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In spite of reporting a massive loss in the first half of this year, state-run Electricity of Vietnam (EVN) confirmed that it will have profit for the whole year, according to newswire Dantri.

According to EVN’s consolidated financial report, in the first six months of this year, the company suffered a loss due to foreign exchange fluctuations of VND6.371 trillion ($282.9 million), producing an after-tax loss of VND716 billion ($31.8 million).

According to deputy general director Dinh Quang Tri, along with foreign exchange fluctuations, unfavourable climate conditions also contributed to EVN’s loss. Notably, the first six months were a dry season, decreasing the capacity of its hydropower plants, forcing EVN to increase expenditures by buying electricity from oil-, coal-, and gas-fired power plants. As a result, electricity production costs in this period increased.

Tri stated that EVN saw a positive changes in its financial results during the third quarter of this year when the wet season came in, increasing the capacity of its thermal power plants. He estimated that the parent company, EVN, earned more than VND1 trillion ($44.7 million) in profit in the first three quarters of this year.

Tri expected that by the end of this year the group will earn a consolidated profit of VND2-3 trillion ($89.4-134.17 million).

A few days earlier, EVN reported that in the first six months of this year, it earned VND131 trillion ($5.8 billion) in consolidated revenue, up 17 per cent on-year. However, financial costs increased to VND15.5 trillion ($688.4 million), putting the company in the red.

In addition, as of June 30, 2016, EVN had consolidated asset value of VND663 trillion ($29.4 billion) and a consolidated owners’ equity of VND187.7 trillion ($8.3 billion), while shouldering a debt of VND475 trillion ($21.09 billion). These large debts put pressure on EVN to pay interest. In the first six months of this year, EVN spent VND6.9 trillion ($306.5 million) on interest payments. The figure was VND12 trillion ($532.97 million) in 2015.

The consolidated financial report of EVN covers the parent company and nine member companies including three generation companies (Genco 1, 2 and 3), National Power Transmission Corporation and five regional power corporations.

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