Multi-sector firm REE reports doubled profit after tax

By An Le
Sun, May 1, 2022 | 5:05 pm GMT+7

Refrigeration Electrical Engineering (REE) reported its after-tax profit doubled year-on-year in the first quarter of 2022 to VND955.3 billion ($41.6 million).

The multi-sector corporation's consolidated financial report for Q1 showed net profit attributable to the parent company's shareholders accounted for $30.2 million, up 67% year-on-year. Earnings per share also climbed 66.2% to VND2,236 ($0.1).

Net revenue jumped 72.9% to $89 million in Q1, mainly due to the energy segment’s total revenue of $62.94 million, up 287% year-on-year.

 The Loi Hai 2 wind power plant, invested by REE, in Ninh Thuan province, south central Vietnam. Photo courtesy of REE.

The Loi Hai 2 wind power plant, invested by REE, in Ninh Thuan province, south central Vietnam. Photo courtesy of REE.

The operation of the Upper Kon Tum hydropower plant and three wind power projects, namely Tra Vinh No.3 V1-3, Phu Lac 2 and Loi Hai 2, resulted in a $11.4 million after-tax profit rise in this segment, according to the report.

The office leasing and real estate segments were the second-largest contributors, with revenue and profit after tax increasing 3.3% and 11.5% respectively year-on-year, due to the gradual post Covid-19 return of tenants. REE, which is listed on the Ho Chi Minh Stock Exchange, witnessed an office occupancy rate of 98% by the end of Q1.

In terms of mechanical and electrical engineering services (M&E), the HCMC-based corporation has signed $206 million of contracts, up 84.6% year-on-year. However, REE M&E's revenue and profit after tax declined 54.5% and 60.6% respectively due to its projects’ construction status.

In contrast, REE’s financial income fell 66% to $1.65 million due to a lack of profit from selling, liquidation investments, and gains on foreign exchange differences. Financial expenses, mainly loan interest, doubled to $9.47 million.

REE planned a revenue of $404 million and after-tax profit of 89.9 million in 2022, up 60% and 10% from the 2021 result. By the end of Q1, REE had completed 22% and 46.2% of the targets.

Recently, the firm announced to close the list of shareholders receiving dividends in 2021 by May 18, 2022, with a scrip dividend rate of 15%. Following the issuance, REE's charter capital would jump to more than $155.2 million.

REE also closed the right to receive a cash dividend rate of 10% on April 20. This was expected to cost about $13.5 million.

The corporation’s main business lines include M&E; manufacturing, assembling, and trading Reetech brand of air conditioning systems; real estate; electricity and water infrastructure, and hydroelectric plants.

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