AES earns $27 mln pre-tax income from Vietnam coal-fired power plant in Jan-Sept

U.S.-based AES Corporation earned a pre-tax income of $27 million from the Mong Duong II coal-fired power plant in Vietnam’s northern province of Quang Ninh in the first nine months of this year.

According to AES’s quarterly report for the period, the figure went down 15.6% from $32 million in the same period of 2023.

AES holds a 51% stake at the power plant, while South Korea's Posco Energy and China's Stable Investment Corporation own 30% and 19%, respectively.

The thermal power plant’s total pre-tax income in the period was $63 million, down 14.9% year-on-year, says the report.

AES said the figures excluded impairment charges, noting that a pre-tax impairment expense of $54 million was incurred in the nine-month period.

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 September 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.

In line with AES's divestment from coal-fired power, the firm is investing in LNG-fired power plant in Vietnam. Regarding AES-invested Son My power complex (Son My LNG terminal and Son My 2 LNG-to-power plant),

In a meeting with state-owned Petrovietnam in late September, AES executive vice president Juan Ignacio Rubiolo said AES is committed to making long-term investments in Vietnam and helping the country with energy transition and green economy.