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EVN has positive financial status: Official

Update: November, 10/2016 - 13:00
Hòa Bình Hydroelectric Plant, a large power producer of Electricity Việt Nam (EVN). EVN expected good business results for 2016. - Photo nangluongvietnam.vn
Viet Nam News

HÀ NỘI — Electronic of Việt Nam (EVN) has so far this year achieved good financial results although it incurred losses in the first six months of this year, an EVN official said.

Đinh Quang Tri, EVN deputy general director, said according to the government’s regulations, the company recently made public a financial statement of the parent, which is EVN, and a consolidated financial statement, including the statements of the parent, three power generator corporations, the National Power Transmission Corporation and five power corporations nationwide.

On its own, the financial statement of EVN, the parent company, posted profit of VNĐ115 billion in the first half of this year, while the consolidated financial statement showed that EVN incurred a loss of VNĐ700 billion, Tri told a Vietnam News Agency correspondent on November 8.

There were two reasons for the loss, he said. Firstly, the first half of the year was the dry season, so there was not much water to run hydroelectric plants. EVN, therefore, had to spend more money to buy expensive electricity from power plants which were run on other fuels such as coal and gas. As a result, production cost of the group increased in the first half of this year.

Secondly, the group also had to pay VNĐ6 trillion as exchange difference between the Vietnamese đồng and US dollar in the first half this year, leading to losses of VNĐ700 billion in total in the consolidated financial statement. The losses mainly came from the power generation companies.

Tri said in the first nine months of this year, parent company EVN posted profit of VNĐ1 trillion, while the whole group, including the parent company and its subsidiaries, was expected to have a larger profit.

The group saw positive business results in the first nine months due to the growth of electric output at hydroelectric plants in the third quarter and reduction in payment for buying electricity from plants that had high selling prices. Power output of Sơn La, Hòa Bình and Lai Châu hydropower plants was also higher than expectation.

For this whole year, EVN is estimated to post profit of VNĐ650-700 billion for the parent company and VNĐ2-3 trillion for the whole group, including the parent company and subsidiaries, according to Tri.

At present, EVN has restructured loans and also withdrawn capital from non-core businesses according to its restructuring plan for 2012-15, approved by the prime minister, he said.

It has collected VNĐ2 trillion by withdrawing its capital at banking, financial, real estate, insurance and securities sectors to put into electric projects. — VNS

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