EVN reports $235 million profit in 2013

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This information was released on December 30 at EVN’s 2013 press conference after years of criticism for lack of transparency. EVN explained about this delay annual information for waiting the full report of its audited consolidated financial statements in 2013, EVN's financial statements by independent auditors for the parent company EVN and the member units, power purchase contract between EVN and power generation units.

Following this, the group reported VND4.9 trillion ($235 million) in profits in 2013 and said it would continue handle losses of VND8.8 trillion ($419 million) out of about VND38 trillion ($1.8 billion) since 2011.

The group’s losses in 2011 were attributed to the lack of water in hydroelectric plants due to drought, as well as the price of fuel, exchange rate fluctuations and slow construction progress of power plants, noted an EVN report.

Under its sales and investment strategy for the 2011-2015 period, in order to overcome the situation the group planned to offset losses through future power price hikes in the 2012-2015 period. Deputy general director of EVN Dinh Quang Tri did not clarify the exact timetable for the electricity price rises.

However, Tri said that: “In 2014 the power price has not been increase, so EVN has now proposed to the government that it offset losses via power price hikes after 2015.”

In regard to its divestiture strategy, EVN has completed withdrawing from Saigon Vina Real Estate Company (Land Saigon) and Central Power Real Estate Joint Stock Company (Land Mien Trung), as ordered by the Ministry of Industry and Trade.

EVN has also submitted a plan to divest VND300 billion ($14.4 million) of its VND755 billion ($36.3 million) investment in An Binh Bank. It currently holds a 25 per cent stake in the bank.

The group divested more than VND1.1 trillion ($52.8 million) from the realty, securities and insurance sectors last year.