PV Power predicts 56% profit drop in 2023
Petrovietnam subsidiary PV Power is targeting an after-tax profit of VND1.12 trillion ($47.64 million) in 2023, down 56% year-on-year.
PV Power is expecting revenue of VND30.33 trillion ($1.29 billion), up 5.3%, according to its 2022 annual report.
In 2023, PV Power has set a production target of 15.6 billion kWh, up 10% compared to 2022.
This year continues to be a challenging year for the power industry and PV Power, due to the abnormal increase in input fuel prices (gas/coal/oil) and surged costs due to rising market prices driven by inflation. Besides, the global economic and political environment remains unstable, according to the company.
This year, many power plants of PV Power will be shut down for major repairs like Ca Mau Power Plant 2, Nhon Trach 1, and Nhon Trach 2. Thus, PV Power will face many difficulties due to the power plants shutting down for a long time, with production costs increasing due to climbing maintenance and repair expenses.
Meanwhile, interest rates of domestic and foreign banks have increased, and foreign exchange rates have risen, raising financial costs, affecting cash flow for debt repayment and impacting capital arrangement for production and project investment.
PV Power reported pre-tax profit of $88.3 million in 2022, exceeding its plan by 140%. Photo courtesy of the company.
In 2023, PV Power has invested in Nhon Trach 3 and 4 power plant projects and the company's headquarters; made research on contributing capital to liquefied natural gas (LNG) and renewable energy power projects; and purchased equipment for infrastructure development to increase its business capacity.
In 2022, the dividend rate was 15%. In 2023, PV Power will not pay dividends.
PV Power posted pre-tax profit of VND2.07 trillion ($88.3 million) in 2022, exceeding its plan by 140%. The company's revenue reached VND28.53 trillion ($1.22 billion), 18% higher than planned.
In 2022, the company signed an EPC contract for Nhon Trach 3 and 4 LNG-fired power plants in Dong Nai province. With a total capacity of 1,500 megawatts and capitalized at $1.4 billion, Nhon Trach 3 and 4 are important national projects under Vietnam’s power development plan VII (PDP VII) and draft PDP VIII. The government has assigned PV Power as investor.
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