Pha Lai Thermal Power JSC meets only half of 2025 profit target

Pha Lai Thermal Power JSC (HoSE: PPC) achieved only 50.8% of its profit plan and 72.4% of its revenue target for 2025, according to the company's Q4 financial statements.

In Q4, PPC posted net revenue of more than VND1.59 trillion ($60.88 million), down 9% from a year earlier. However, a 15.2% decline in cost of goods sold lifted gross profit by nearly VND100 billion to over VND161.7 billion ($6.19 million).

By contrast, financial income plunged 90.2% to just over VND16.3 billion ($624,000). PPC said the drop was due to dividends from invested units that had been recognized in earlier quarters.

PPC posted net profit of more than VND125.7 billion ($4.81 million), down 30.5% year-on-year. Notably, this marked the company’s fourth consecutive quarter of declining net profit.

The company explained that electricity sales in Q4/2025 were nearly 150 million kilowatt-hours lower than a year earlier, weighing on power-generation revenue.

It also cited higher costs, with major repair expenses rising by VND7.72 billion ($295,366) and other cash expenses up more than VND45.22 billion, largely due to major overhauls and routine maintenance works.

For full-year 2025, PPC posted net revenue of about VND6.57 trillion ($251.18 million), down 14.5% from a year earlier. Net profit came in at nearly VND170 billion ($6.5 million), a sharp decline of 60.2%.

At its 2025 AGM, PPC set targets of more than VND9.06 trillion ($346.79 million) in revenue and VND395.2 billion ($15.12 million) in pre-tax profit.

At the end of the year, its pre-tax profit stood at just over VND200.9 billion, meaning the company achieved 50.8% of its profit target and 72.4% of its revenue goal.

At the end of 2025, PPC’s total assets stood at more than VND5.25 trillion ($200.69 million), down 5.1% from the start of the year. Notably, cash and cash equivalents jumped more than 15.5-fold to over VND395.4 billion, from just VND25.4 billion at the beginning of the year.

Short-term receivables fell 40% to just over VND1.1 trillion ($42.15 million), driven mainly by a drop in customer receivables. By contrast, inventories climbed 3.5% to more than VND706.5 billion, largely made up of raw materials, tools, and equipment.

PPC’s liabilities - all short-term - fell 23.1% to just over VND775.1 billion ($29.65 million). Most of the total came from short-term payables to suppliers, which stood at more than VND664 billion, down 16.8% from the start of the year.