AES earns $17 mln in pre-tax income from northern Vietnam coal-fired plant

U.S.-based AES Corporation says it has earned a pre-tax income of $17 million in H1/2024 from the $2.1-bln Mong Duong II coal-fired power plant in the northern coastal province of Quang Ninh.

The income marked a 30% decline from $24 million earned in H1/2023, according to the company’s report released in the second quarter of this year. It said the pre-tax income in Q2/2024 was $7 million, nearly half that of Q2/2023.

The AES report said the figure excluded impairment charges, noting that a pre-tax impairment expense of $43 million was incurred in the first half of this year, including $6 million in Q2/2024.

In November 2023, AES entered into an agreement to sell its entire 51% ownership interests in Mong Duong 2 as well as Mong Duong Finance Holdings B.V., a special purpose vehicle accounted for as an equity affiliate. Collectively, the two units are referred to as Mong Duong. The sale is subject to regulatory approval and is expected to close in mid-2025, AES said.

As of June 30, 2024, AES had approximately $1 billion of loans receivable primarily related to the Mong Duong facility in Vietnam, which was constructed under a build, operate, and transfer (BOT) contract. This loan receivable represents contract consideration related to construction of the facility, which was substantially completed in 2015; to be collected over the plant’s 25-year PPA (power purchase agreement) term.