Vietnam: EVN confirms profit for 2016

Vietnam: EVN confirms profit for 2016

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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Link to Original Article:
http://www.vir.com.vn/evn-confirms-profit-for-2016.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com