Thermal power plants record Q4 profit drop on higher costs

By Trang Nguyen
Thu, January 26, 2023 | 8:54 pm GMT+7

Profits among leading thermal power plants in Vietnam plunged sharply in the fourth quarter of 2022 due to high input costs.

Quang Ninh Thermal Power JSC reported net revenue of VND2,262 billion ($96.46 million) in Q4/2022, a 3% drop year-on-year, while after-tax profit was around VND25 billion ($1.07 million), down 86%.

The company said the decline in profit was due to increased coal prices and its using different types of coal due to supply restrictions, causing the heat loss rate to rise.

In 2022, the company achieved net revenue of VND10,417 billion ($444.23 million), up 21.5% year-on-year, and after-tax profit of VND770 billion ($32.84 million), up 33%.

Nhon Trach 2 thermal power plant in Ong Keo Industrial Park, Nhon Trach district, Dong Nai province, southern Vietnam. Photo courtesy of the company.

Nhon Trach 2 thermal power plant in Ong Keo Industrial Park, Nhon Trach district, Dong Nai province, southern Vietnam. Photo courtesy of the company.

Meanwhile, PetroVietnam Power Nhon Trach 2 JSC gained net revenue of VND1,923 billion ($82 million) in Q4, up 17.7% year-on-year. The company's after-tax profit was nearly VND5.8 billion ($247,340) in the quarter, down 95%.

According to the company (PVPower NT2), the profit declined because of higher administrative expenses, mainly due to the provision expense for bad debts of VND239.6 billion ($10.22 million).

In 2022, PVPower NT2 reached net revenue of VND8,786 trillion ($374.68 million), up 43% year-on-year, and after-tax profit of VND729 billion ($31.09 million), up 36.6%.

Another case, Power Engineering Consulting JSC 2 reported after-tax profit of VND35 billion ($1.49 million) in Q4, down two times year-on-year and net revenue of VND288.8 billion ($12.32 million), down 6%.

In 2022, the company (PECC2) gained a net revenue of VND1,322 billion ($56.38 million) and after-tax profit of VND76.6 billion ($3.27 million), down 2.7 times and 3.5 times year-on-year, respectively.

The company said that in 2022, the national power development plan VIII (PDP VIII) is waiting for government approval, so many investors had put a hold on new factories, leading to a decrease in company revenue compared to the previous year.

In addition, input costs like transportation, raw materials, and interest expenses all increased.

On the contrary, Pha Lai Thermal Power JSC reported a net revenue of VND1,575 billion ($67.16 million) in Q4, three times year-on-year.

Its after-tax profit was VND68.9 billion ($2.94 million), while the figure for the same period in 2021 was negative VND7.1 billion.

In 2022, the company posted a net revenue of VND5,115 billion ($218.13 million) and after-tax profit of VND372.6 billion ($15.89 million), up 32% and 72% year-on-year, respectively.

According to a recent report by leading broker VNDirect, from 2023-2024, the continued high price of imported coal will be the main obstacle to the growth of the coal power segment.

"We expect gas power to continue to grow in 2023-2024, underpinned by rising load demand and a forecast drop in gas prices. We believe that PV Power (POW) and PVPower NT2 (NT2) will benefit from this factor," VNDirect said.

Petrovietnam subsidiary PV Power posted pre-tax profit of VND2,071 billion ($88.3 million) in 2022, exceeding its target by 140%.

The company's revenue reached VND28,527 billion ($1.22 billion), 18% higher than planned.

Comments (0)
  • Read More
Japan’s Sumitomo eyes LNG power plant in central Vietnam

Japan’s Sumitomo eyes LNG power plant in central Vietnam

Sumitomo Corporation is exploring the development of an LNG-to-power plant in Vietnam’s central coastal province of Khanh Hoa, part of its push into the country’s new energy sector.

Energy - Sun, August 10, 2025 | 8:00 am GMT+7

Brazilian meatpacker JBS to build 2 plants in Vietnam

Brazilian meatpacker JBS to build 2 plants in Vietnam

Brazilian meat giant JBS S.A. will invest in two export-oriented food processing plants in Vietnam following a plan first announced in March.

Investing - Sun, August 10, 2025 | 12:28 am GMT+7

Vietnam's benchmark VN-Index likely to reach 1,800 points next year: broker

Vietnam's benchmark VN-Index likely to reach 1,800 points next year: broker

Despite potential short-term volatility from increased profit-taking pressure following a high-margin phase in late July, Vietnam’s benchmark VN-Index is expected to reach the 1,750-1,800 point range in 2026, according to leading broker Saigon Securities (SSI).

Finance - Sat, August 9, 2025 | 6:22 pm GMT+7

Mobile World to list mobile phone, electronic home appliance chains by 2030

Mobile World to list mobile phone, electronic home appliance chains by 2030

Mobile World Investment Corporation (MWG), a leading retailer in Vietnam, plans to conduct an IPO of and list its core retail chains The Gioi Di Dong (mobile phones) and Dien May Xanh (electric and electronic home appliances) by 2030.

Companies - Sat, August 9, 2025 | 6:04 pm GMT+7

Vietnam officially grants visa-free entry to high-profile foreigners

Vietnam officially grants visa-free entry to high-profile foreigners

The Vietnamese Government has introduced a limited-term visa waiver scheme for foreign nationals who are "prioritized for the sake of the country’s socio-economic development".

Politics - Sat, August 9, 2025 | 11:32 am GMT+7

VinEnergo launches rooftop solar, battery storage projects in central Vietnam

VinEnergo launches rooftop solar, battery storage projects in central Vietnam

VinEnergo Energy Joint Stock Company has signed MoUs to install rooftop solar power systems integrated with battery energy storage systems (BESS) with the VinFast automobile plant and two battery factories in the central province of Ha Tinh.

Companies - Sat, August 9, 2025 | 10:21 am GMT+7

Indonesia doubles lithium imports to boost EV battery production

Indonesia doubles lithium imports to boost EV battery production

Indonesia is accelerating plans to increase lithium imports, particularly from Australia, in a bid to fill gaps in the electric vehicle (EV) battery supply chain and realize its ambition of becoming a global EV manufacturing hub.

Southeast Asia - Sat, August 9, 2025 | 10:18 am GMT+7

Optimism rises for Thailand’s economy after US tariff cut

Optimism rises for Thailand’s economy after US tariff cut

Thailand’s private sector has lifted its 2025 GDP growth forecast to 1.8-2.2%, up from the previous 1.5-2%, following the U.S. decision to reduce import tariffs on Thai goods from 36% to 19%.

Southeast Asia - Sat, August 9, 2025 | 10:16 am GMT+7

Foreign investors make up 4.27% of Vietnamese G-bonds trading value in July

Foreign investors make up 4.27% of Vietnamese G-bonds trading value in July

Foreign investors accounted for 4.27% of the total trading value of Vietnamese government bonds (G-bonds) in July, with net buying at VND298 billion (nearly 11.4 million).

Finance - Sat, August 9, 2025 | 10:08 am GMT+7

Vietnam developer Taseco Land plans private share placement following HCMC bourse debut

Vietnam developer Taseco Land plans private share placement following HCMC bourse debut

Shortly after its listing on the Ho Chi Minh Stock Exchange (HoSE) as TAL, Taseco Land, a subsidiary of Vietnam’s conglomerate Taseco Group, is seeking shareholder approval for a private share placement targeted at professional investors.

Companies - Sat, August 9, 2025 | 8:00 am GMT+7

Vietnam aims to finalize negotiations for Ninh Thuan 1 nuclear power plant by August

Vietnam aims to finalize negotiations for Ninh Thuan 1 nuclear power plant by August

The Vietnamese government targets completing negotiations for Ninh Thuan 1 nuclear power plant in former Ninh Thuan province (now Khanh Hoa) by August 2025, and for Ninh Thuan 2 by May 2026 at the latest.

Energy - Fri, August 8, 2025 | 4:18 pm GMT+7

Software giant SAP invests $175 ml in R&D center in Vietnam

Software giant SAP invests $175 ml in R&D center in Vietnam

German software heavyweight SAP has officially launched a research & development center in Vietnam, with plans to invest more than €150 million ($175 million) over the next five years.

Industries - Fri, August 8, 2025 | 3:43 pm GMT+7

Carlsberg’s Phu Bai Brewery expansion in central Vietnam set to start brewing late this month

Carlsberg’s Phu Bai Brewery expansion in central Vietnam set to start brewing late this month

The expansion of Carlsberg’s brewery in Hue city, central Vietnam, with an investment of nearly $90 million, has entered trial runs and is scheduled to be inaugurated and begin full-scale production in late August.

Industries - Fri, August 8, 2025 | 2:43 pm GMT+7

Indonesia promotes nickel-based EV battery production

Indonesia promotes nickel-based EV battery production

Indonesia is advocating regulations to encourage electric vehicle (EV) manufacturers to switch from the commonly used lithium-based batteries to nickel-based ones.

Southeast Asia - Fri, August 8, 2025 | 1:54 pm GMT+7

BRICS countries account for over 35% of Malaysia’s total foreign trade turnover

BRICS countries account for over 35% of Malaysia’s total foreign trade turnover

Malaysia’s trade with BRICS nations climbed to RM818 billion ($193.47 billion) in 2024, making up 35.2% of the country’s total global trade, according to the Ministry of Investment, Trade and Industry (MITI).

Southeast Asia - Fri, August 8, 2025 | 1:52 pm GMT+7

Vietnam consumer finance major F88’s stock hits ceiling price on UPCoM debut

Vietnam consumer finance major F88’s stock hits ceiling price on UPCoM debut

The stock of F88 Investment JSC (F88), a leading consumer finance company in Vietnam, hit its ceiling price of VND888,800 ($34) on Friday, the first day of trading on the Unlisted Public Companies Market (UPCoM).

Companies - Fri, August 8, 2025 | 1:32 pm GMT+7