BCG Energy’s pre-tax profit hits $18.7 mln in 2024

BCG Energy (UPCoM: BGE), a subsidiary of Vietnam's multi-sector corporation Bamboo Capital (HoSE: BCG) posted a consolidated pre-tax profit of VND468 billion ($18.66 million), a significant turnaround from the 2023 loss of VND147 billion ($5.86 million).

It recorded a consolidated net revenue of VND1.27 trillion ($51 million) in 2024, up 13.5% year-on-year.

The growth was primarily driven by BCG Energy’s addition of 114 MW from phase 2 of the Phu My solar power plant, which became commercially operational in June 2023. This expansion contributed to the firm’s total electricity output of 488 million kWh in 2024, up 21.2% year-on-year.

Additionally, other solar power projects operated by BCG Energy yielded higher output than last year. Also, rooftop solar power projects have benefited from a 4.8% rise in electricity prices from October 2024.

As of December 31, 2024, BCG Energy’s total assets reached VND19.44 trillion ($775.3 million), up 2.1% from early last year. This increase was boosted by fresh investments, including funding for the Tam Sinh Nghia waste-to-energy plant project in Cu Chi district of Ho Chi Minh City.

BGE’s liabilities inched up 0.3% year-on-year to VND9.32 trillion ($372.12 million), indicating that the company has proactively managed its investments while awaiting policy changes and optimized its debt structure.

BCG Energy’s debt-to-equity ratio has consistently improved over the years, decreasing from 1.9 as of December 31, 2022, to 0.96 as of December 31, 2023, and to 0.92 as of December 31, 2024.

This represents a highly positive ratio compared to other businesses in the same industry and remains safe for a company operating in the capital-intensive renewable energy sector.

BCG Energy reported a net profit of VND32.1 billion ($1.28 million) in the fourth quarter of 2024, a remarkable turnaround from the VND76.8 billion ($3.06 million) loss in the same period of 2023.

This improvement was primarily driven by additional revenue from providing services to waste-to-energy companies, as well as cost savings on financial expenses.

Looking ahead to 2025, BCG Energy’s net revenue is expected to continue its positive growth trajectory. This will be supported by the completion of procedures for the commercial operation of the first 21 MW (out of a total capacity of 49 MW) of the Krong Pa 2 solar power project in the Central Highlands province of Gia Lai, along with contributions from under-construction rooftop solar power projects.

The rooftop solar business is anticipated to expand significantly following the government’s issuance of the Direct Power Purchase Agreement (DPPA) and Decree 135, which outline mechanisms and policies to encourage self-use rooftop solar power development.

According to Vietnam’s eighth national power development plan (PDP VIII), BCG Energy currently has wind power projects with a total capacity of up to 925 MW, prioritized for implementation through 2030.

The company aims to achieve a total capacity of 2 GW by 2028 while diversifying its renewable energy investment portfolio with low capital expenditure and an average annual profit margin of 10-14%.

It can be seen that in the medium and long term, BCG Energy holds substantial potential for revenue and profit growth.