AES earns 2023 revenue of $344 mln in Vietnam, plans to sell power plant by mid 2025

AES Corporation earned a revenue of $344 million from its operations in Vietnam in 2023, according to the American energy company’s year performance review.

The figure went up from $323 million in 2022 and $320 million in 2021, per AES data. Globally, AES recorded a total revenue of $12.67 billion in 2023, with the U.S. accounting for the biggest portion of $4.44 billion, followed by Chile with $1.93 billion and the Dominican Republic with $1.4 billion.

On its global operations, AES received income tax benefits of $19 million, $27 million, and $27 million in 2023, 2022, and 2021, respectively. Of which, the figures for operations in Vietnam were $16 million, $18 million, and $16 million, respectively.

In Vietnam, AES’s only current operational activity is the Mong Duong 2 coal-fired power plant in the northern province of Quang Ninh. The 1,242 MW factory began operation in 2015 under the build-operate-transfer (BOT) format and the contract is set to expire in 2040.

In November 2023, AES announced that it would sell its 51% equity stake in the facility to the Czech Republic-based Se.ven Global Investments. The move is subject to approval from Vietnamese authorities, and is expected to close in mid-2025. It is also in line with AES's intent to exit the majority of its coal assets by the end of 2025.

As of end 2023, AES had approximately $1.1 billion of loans receivable related to the Mong Duong 2 facility. This represents contract consideration related to the construction of the facility and is set to be collected over the 25-year term of the plant's power purchase agreement (PPA), AES clarified.

AES recorded a pre-tax income of $40 million from its Mong Duong 2 business in 2023, lower than $50 million in 2022 and $56 million in 2021, the American firm added.

While AES is withdrawing from its coal-fired power business in Vietnam, the firm is stepping up LNG-fired power activity. In July 2023, a joint venture between AES Corporation and Petrovietnam subsidiary PV Gas was granted investment policy approval for its $1.4 billion Son My LNG Terminal project by authorities in Binh Thuan province.

The terminal, to be built by the Son My LNG Terminal Project Company in the south-central province, will have an installed capacity of 450 TBtu and is expected to begin commercial operations in 2027, AES said.

In February, AES officially received in-principle approval for its 2.25-GW Son My 2 combined cycle gas turbine (CCGT) power plant in the south-central province of Binh Thuan, with an investment of $1.8 billion.