Bamboo Capital profit after tax triples in Q1

Bamboo Capital Group (BCG) recorded a VND522 billion ($22.74 million) profit in the first quarter of the year, up 221% year-on-year.

The multi-sector Vietnamese corporation, which is making bold investments in wind and solar power projects, attained $55 million in revenue in the period, a 98% increase, according to its financial report.

The revenue includes $20.78 million from its real estate unit BCG Land; nearly $9.2 million from BCG Energy; and almost $19.4 million from TCD, its construction and infrastructure subsidiary. The group’s finance and insurance business contributed about $2.1 million.

The construction business maintained stable contributions, while the real estate business continued to earn revenue from the handover of villas at the King Crown Village luxury project in Ho Chi Minh City.

The renewables grew positively thanks to the consolidation of revenue from two solar power plants, BCG Long An 1 and 2, with a total capacity of 141.1 MW, as the group has acquired stakes to turn the two into wholly-owned subsidiaries.

The report said the real estate and renewables businesses were instrumental to the group’s profit margin in Q1, which rose 42.9% compared to the 32.1% of the same period last year.

In early 2022, BCG issued more than 148 million shares to existing shareholders, raising its charter capital to VND4,463 billion (over $194 million) from VND2,975 billion.

By the end of Q1, the group's total assets climbed 10% against the beginning of the year, to over $1.8 billion. Its liabilities were $1.32 billion, an increase of $44.2 million from the beginning of the year.

BCG said it has been actively controlling outstanding loans to minimize financial risks. Its debt-to-equity ratio has decreased from 7.15 times by the end of 2020 to 3.51 times by the end of 2021. By the end of Q1, the ratio went down to 2.72 times.

The corporation is carrying out financial restructuring of its projects, targeting a ratio below 2.0 for this year to ensure financial stability.

BCG has recently signed cooperation deals with international majors like Siemens Gamesa Renewable Energy, SP Group, and Sembcorp Utilities.

Siemens Gamesa, a top renewable energy developer worldwide, signed a preliminary agreement last October to supply wind turbine gear worth up to $400 million to BCG Energy. The deal was part of the Vietnamese firm's move to develop wind turbines with a capacity of over 500 MW.

In December, Singapore’s Sembcorp Utilities signed a collaboration agreement with BCG Energy to develop a 1.5 GW renewable project pipeline in Vietnam.

SP Group, another Singaporean company, signed a memorandum of understanding with BCG Energy last May to support the development of new renewable energy projects in the country.