EVN reports massive loss in first half of 2016

November 08, 2016 | 14:39

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State-run Electricity of Vietnam (EVN) has reported a loss of VND6.371 trillion ($282.9 million) due to foreign exchange fluctuations, making it suffer an after-tax loss of VND716 billion ($31.8 million) in the first half of this year, according to newswire Vneconomy.

According to EVN’s consolidated financial report, in the first six months of this year EVN earned VND131 trillion ($5.8 billion) in revenue, up 17 per cent on-year. However, financial costs increased to VND15.5 trillion ($688.4 million), causing EVN’s losses.

According to deputy general director Dinh Quang Tri, the major reason for the consolidated losses is the foreign exchange fluctuations. Notably, the group earned VND5.814 trillion ($258.2 million) in profit from business activities without the VND6.371 trillion ($282.9 million) lost in foreign exchange fluctuations.

In addition, as of June 30, 2016, EVN had an asset value of VND663 trillion ($29.4 billion) and a consolidated equity capital 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. Notably, 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.

In spite of operating at a loss, EVN has been chosen to take over thermal power plants Quang Trach I and II, both of which are located in Quang Trach Power Centre in the central province of Quang Binh.

Notably, EVN will replace Vietnamese oil and gas group PetroVietnam to develop the long-delayed thermal power plant Quang Trach I.

Regarding Quang Trach II, EVN will replace Russian Inter RAO Group to carry out a pre-feasibility study to develop this project.

The two projects have a total investment capital of $4.1 billion.

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