Multi-sector firm REE reports doubled profit after tax

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 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.