PV Power to divest subsidiaries and streamline operations

PetroVietnam Power Corporation (PV Power)

PetroVietnam Power Corporation JSC (PV Power, HSX: POW) has just announced its plans for the period of 2021-2025 with several large sell-offs of its interest in subsidiaries.

Specifically, PVPower would reduce its majority ownership in four subsidiaries, including Hua Na Hydropower JSC (UPCoM: HNA), PetroVietnam Power Nhon Trach 2 JSC (HSX: NT2), PetroVietnam Power Technical Services Center (PV Power Services), and PetroVietnam Power Renewable Energy JSC (PV Power REC).

Besides, a number of new subsidiaries might be established to serve future activities.

PV Power will also take a different approach on Luang Prabang Co., Ltd., an associate, following the directions of the government and relevant authorities.

PVPower also plans to continue the full divestment of several other firms which it had plans to cut loose in 2016-2020. These include Nam Chien Hydropower JSC, Song Hong Energy JSC, PetroVietnam Urban Development JSC, Song Tranh 3 Hydropower JSC, EVN International JSC, PetroVietnam Mechanical and Electrical JSC, Viet Lao Power JSC, and PetroVietNam Machinery-Technology JSC.

At the same time, PetroVietnam will reduce its interest in DakDrinh Hydropower (PV Power DHC) below 65 per cent of the charter capital or the entire contributed capital. In case the corporation successfully equitises the company, it has to comply with regulations of the Vietnamese government, the Ministry of Finance, and credit contract with Crédit Agricole Corporate and Investment Bank - its foreign lender.

In addition, the firm is also implementing relevant procedures for the termination of the operation of Son Tra-Song Da Hydropower and Asia-Pacific Energy in accordance with the law.

As of September 2020, the company recorded a revenue of VND21.795 trillion ($947.6 million), down 17 per cent on-year. Its after-tax profit reached VND1.487 trillion ($64.65 million), down 40 per cent on-year.