HCMC-based Bamboo Capital's energy arm fulfils 98% of profit target in 9 months

By Minh Hue
Fri, November 1, 2024 | 2:32 pm GMT+7

BCG Energy JSC, a subsidiary of Vietnamese private conglomerate Bamboo Capital Group, posted a consolidated after-tax profit of VND504 billion ($19.94 million) in the first nine months of 2024, fulfilling 98% of the year's profit target.

A solar farm developed by BCG Energy JSC. Photo courtesy of the company.

A solar farm developed by BCG Energy JSC. Photo courtesy of the company.

In its freshly released Q3 financial statement, BCG Energy, registered on the Unlisted Public Companies Market (UPCoM) as BGE, reported net revenues of VND1.03 trillion ($40.74 million) in Jan-Sept, up 15% year-on-year.

The company attributed the increase largely to the addition of 114 MW from the second phase of the Phu My solar power plant in the southern province of Ba Ria-Vung Tau, which commenced commercial operations in June 2023.

Its operational solar projects – BCG Long An 1 (40.6 MW), BCG Long An 2 (100.5 MW), BCG Phu My (330 MW), and BCG Vinh Long (49.3 MW) – have all demonstrated impressive performances, the report said.

Additionally, approximately 75 MW of operational rooftop solar projects also did well, benefiting from a 4.8% increase in electricity prices in October.

BCG Energy’s consolidated after-tax profit of $19.94 million showcased a remarkable recovery from a loss of VND56 billion ($2.21 million) in the same period last year, driven by effective cost-saving measures, particularly a sharp reduction in interest expenses, along with optimized management costs.

As of September 30, the company's total consolidated assets value stood at VND20.05 trillion ($793.12 million), reflecting a 5% year-on-year rise since the beginning of the year, mainly due to new investments, including the Tam Sinh Nghia waste-to-energy plant in Cu Chi district, HCMC.

Its total liabilities rose to VND9.82 trillion ($388.45 million), up 6% year-on-year, largely related to the acquisition of Tam Sinh Nghia Investment and Development JSC.

The company’s debt-to-equity ratio decreased from 1.9 at the end of 2022 to 0.96 as of September 30, 2024. This ratio is better than that of its peers in the same industry and indicates a solid financial footing for BCG Energy, which operates in the capital-intensive renewable energy sector. Additionally, the loan-to-equity ratio fell from 1.25 at the end of 2022 to 0.62 in Q3/2024.

“This improvement not only enhances financial capacity but also mitigates risks from economic and market fluctuations. A strong financial position further strengthens the company’s ability to pursue mergers and acquisitions (M&A) to expand its project portfolio,” the report said.

In Q3/2024, BCG Energy recorded a 77.09% increase in revenue and an astounding 831.81% rise in net profit over Q3/2023. This achievement was made possible by new service revenue from waste-to-energy projects and effective cost management, the company noted.

Strong growth ahead

BCG Energy currently has 75 MW of rooftop solar power installations and plans to double the capacity this year.

Its clientele includes major corporations like dairy giant Vinamilk (VNM) and major retailer Mobile World Investment Corporation (MWG). In the coming years, the company aims to develop an additional 150 MW of rooftop solar power each year.

Currently, BCG Energy is installing new rooftop solar projects at Mobile World’s The Gioi Di Dong and Bach Hoa Xanh stores, with plans to complete installations at 115 locations by the end of 2024.

The rooftop solar segment is poised for continued growth following the government’s issuance of the Direct Power Purchase Agreement (DPPA) mechanism and Decree 135 featuring mechanisms and policies to support the development of self-produced and self-use power systems.

In 2024, BCG Energy’s net revenue is expected to maintain positive growth, bolstered by completion of procedures to begin commercial operations for the first 21 MW of the Krong Pa 2 solar project in the Central Highlands province of Gia Lai, along with contributions from ongoing rooftop solar projects.

Additionally, to enhance overall capacity, the company is pursuing M&A opportunities in operational solar projects eligible for a new feed-in-tariff (FiT 2).

In the waste-to-energy sector, BCG Energy is speeding up work on the first phase of the Tam Sinh Nghia plant in HCMC and is studying projects in Long An, Kien Giang and other provinces.

The company sees significant medium to long term potential for revenue and profit growth. It has eight wind power projects with a total capacity of 925 MW prioritized for implementation by 2030 under the national power development plan VIII (PDP VIII),

It aims to achieve a total capacity of 2 GW by 2026 while diversifying its renewable energy portfolio with low investment costs and an average annual profit margin of 10-14%.

BGE closed Thursday at VND11,500 ($0.45) per share.

Comments (0)
  • Read More
Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout

Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout

Authorities in the central province of Quang Tri are evaluating a proposal from Power Generation JSC 1 (EVNGENCO 1), a subsidiary of state utility Vietnam Electricity (EVN), to take over the Quang Tri thermal power plant project, following the withdrawal of Thai investor EGATi.

Energy - Tue, September 16, 2025 | 1:44 pm GMT+7

Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers

Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers

Amata VN, the Vietnam arm of Thailand’s leading industrial park developer Amata, has approved a plan for its subsidiary Amata City Long Thanh Urban JSC (ACLT) to sell its remaining 51% stakes in two entities to local developer Novaland-linked buyers.

Real Estate - Tue, September 16, 2025 | 12:19 pm GMT+7

Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister

Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister

Vietnam has fulfilled the criteria for a stock market status upgrade by FTSE Russell through reforms aimed at facilitating foreign investment inflows into its market, said Minister of Finance Nguyen Van Thang.

Economy - Tue, September 16, 2025 | 9:36 am GMT+7

Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry

Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry

The Ministry of Finance is proposing a key reform that would allow commercial banks to invest in and distribute mutual fund certificates, as part of a broader plan to restructure the investor base and foster the development of Vietnam’s fund management industry.

Finance - Tue, September 16, 2025 | 8:00 am GMT+7

E-commerce boom a major driver of Vietnam's packaging paper industry growth

E-commerce boom a major driver of Vietnam's packaging paper industry growth

Vietnam's paper packaging industry is entering a period of strong growth, with an average annual growth rate forecasted at 10% until 2030.

Companies - Mon, September 15, 2025 | 10:20 pm GMT+7

Vietnam needs support from UK in developing international financial center: Deputy PM

Vietnam needs support from UK in developing international financial center: Deputy PM

Permanent Deputy Prime Minister Nguyen Hoa Binh has called on the UK and the City of London to continue supporting and accompanying Vietnam in promoting and introducing its international financial center (IFC).

Finance - Mon, September 15, 2025 | 10:12 pm GMT+7

Vietnam enforces 8% capital adequacy ratio for banks from Sept 15

Vietnam enforces 8% capital adequacy ratio for banks from Sept 15

Commercial banks and foreign bank branches in Vietnam must maintain a minimum capital adequacy ratio (CAR) of 8%, including at least 4.5% in Tier 1 core capital and 6% in Tier 1 capital, starting from September 15.

Banking - Mon, September 15, 2025 | 10:04 pm GMT+7

Tool for wood traceability management debuts in Vietnam

Tool for wood traceability management debuts in Vietnam

The Vn-WoodID application has been officially launched in Vietnam, becoming a key tool contributing to wood traceability.

Companies - Mon, September 15, 2025 | 10:00 pm GMT+7

Sun Group, US Embassy foster aviation-hospitality cooperation

Sun Group, US Embassy foster aviation-hospitality cooperation

Sun Group, in collaboration with the US Embassy in Vietnam, hosted the US – Vietnam Aviation Partnership Roundtable on September 12, bringing together 15 leading American corporations in aviation, technology, and financial services, opening up opportunities to position Phu Quoc as a new aviation and tourism hub in the region.

Companies - Mon, September 15, 2025 | 9:54 pm GMT+7

Vietnam tops Thai giant SCG’s overseas markets with 9% revenue contribution in H1

Vietnam tops Thai giant SCG’s overseas markets with 9% revenue contribution in H1

Vietnam remained the largest overseas market for Thailand’s Siam Cement Group (SCG) in the first half of 2025, contributing 9% of consolidated sales.

Companies - Mon, September 15, 2025 | 8:10 pm GMT+7

Central Vietnam to have new airport Mang Den

Central Vietnam to have new airport Mang Den

Procedures to adjust Vietnam's airport system planning, including the addition of Mang Den Airport in central Vietnam, are being proceeded, according to the Ministry of Construction.

Infrastructure - Mon, September 15, 2025 | 5:16 pm GMT+7

Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital

Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital

The Vietnamese Government has advanced the regulation of digital assets, with a resolution launching a five-year pilot framework for issuance and trading. This framework signals the Government’s intent to position the country as a regulated hub for digital assets in Asia, which could attract new capital inflows, write Dragon Capital analysts.

Economy - Mon, September 15, 2025 | 2:20 pm GMT+7

Agribank introduces sizable $4.17 bln preferential credit package

Agribank introduces sizable $4.17 bln preferential credit package

Right from the beginning of 2025, Agribank launched a substantial preferential credit package worth VND110 trillion ($4.17 billion) to support individual customers.

Companies - Mon, September 15, 2025 | 1:32 pm GMT+7

'Precious space' in Vietnam's monetary policy

'Precious space' in Vietnam's monetary policy

The Federal Reserve's continued cuts in 2025, with the most recent in September, are considered a valuable policy "space" for the State Bank of Vietnam (SBV) to maintain low interest rates to support growth without having to worry too much about exchange rates.

Economy - Mon, September 15, 2025 | 10:15 am GMT+7

Vietnam’s central bank sells $1.5 bln to stabilize currency: broker MBS

Vietnam’s central bank sells $1.5 bln to stabilize currency: broker MBS

The State Bank of Vietnam (SBV) intervened in the foreign exchange market by selling approximately $1.5 billion via 180-day cancelable forward contracts from August 25-26, in an effort to ease pressure on the Vietnamese dong, according to a recent report by MB Securities (MBS).

Banking - Mon, September 15, 2025 | 8:04 am GMT+7

Hanoi aims to break ground on $11.4 bln Red River Boulevard & Landscape project by Jan 2026

Hanoi aims to break ground on $11.4 bln Red River Boulevard & Landscape project by Jan 2026

A consortium of “tunnel king” Deo Ca Group and real estate developer Van Phu Invest has been assigned by the Hanoi People’s Committe to prepare an investment proposal for the VND300 trillion ($11.37 billion) Red River Boulevard & Landscape project.

Real Estate - Mon, September 15, 2025 | 7:55 am GMT+7