Platinum Victory-backed REE posts three-year low in 2024 net profit

Ho Chi Minh City-based utility firm Refrigeration Electrical Engineering Corporation (HoSE: REE), backed by Singaporean fund Platinum Victory Pte. Ltd., reported its lowest net profit in three years in 2024 due to declines across most business segments.

According to its Q4/2024 earnings report, the multi-industry company recorded a net profit of VND1.99 trillion ($78.12 million) on revenue of VND8.38 trillion ($328.42 million) in 2024, down nearly 9% and 2% year-on-year, respectively.

The company stated that its 2024 performance was significantly impacted by unfavorable weather conditions in the energy segment but was partially offset by strong growth in its refrigeration and commercial divisions.

The energy segment’s profit plunged 23.5% year-on-year to VND1 trillion ($39.5 million) in 2024, primarily due to unfavorable hydrological conditions in the first half of the year, especially in Vietnam’s central and southern regions.

Last year, the company launched two new projects, the Tra Khuc 2 hydropower plant in the central province of Quang Ngai and the Duyen Hai wind power plant in the southern province of Tra Vinh.

Meanwhile, profit from the real estate business dropped 9.4% to VND509 billion ($19.94 million), impacted by higher operating costs and depreciation related to the opening of the Etown 6 office building in HCMC.

The water and environment segment generated VND267 billion ($10.46 million) in profit, down 17.6% from 2023. Last year, REE acquired a 20% stake in Suoidauwaco.

Meanwhile, the mechanical-electrical (M&E) and trading services returned to profitability, posting VND150 billion ($5.88 million) in profit in 2024. The company secured newly signed contracts totaling VND4.44 trillion ($174.2 million), three times higher than in 2023, driven primarily by a contract involved in the construction of Long Thanh international airport in Dong Nai province and other new projects.

Last year, REE shares surged 34%, and the company's outlook remains highly promising. SHS Securities noted that REE has three key growth drivers this year: the potential recovery of its energy business thanks to favorable weather conditions, revenue from property leasing, and the revival of its M&E segment.

Currently, REE’s general director is Nguyen Thi Mai Thanh, who previously served as the company’s chairwoman before being succeeded by Alain Xavier Cany in November 2024.

Platinum Victory Pte. Ltd. registered to buy another 16.8 million shares in REE between December 16, 2024 and January 24, 2025. After the acquisition, Platinum Victory reportedly holds a total of 211.9 million REE shares, or a 44.99% stake in the Vietnamese company, up from 41.4%.

REE shares closed Friday at VND72,000 ($2.82) each.