Vietnam's state utility EVN posts $314 mln in post-tax profit after long period of losses

State-owned giant Vietnam Electricity (EVN) made a remarkable turnaround in 2024, recording a post-tax profit of more than VND8.24 trillion ($314.2 million), ending a prolonged period of losses.

The figure marked a complete reversal from the record loss of over VND26.8 trillion ($1.02 billion) in 2023.

EVN’s newly-released audited consolidated financial statement for 2024 shows that the group recorded net revenue of VND580.54 trillion ($22.13 billion), an increase of nearly VND80 trillion compared to the previous year, equivalent to a 16% year-on-year rise.

This is an impressive growth following a period of losses caused by high input costs and electricity selling prices that failed to keep pace with market realities.

As a key highlight, operating profit reached VND13 trillion ($495.65 million), compared to a loss of VND19.86 trillion in the previous year.

One of the major factors contributing to EVN’s turnaround was the decrease in electricity input costs, particularly due to favorable hydrological conditions that allowed effective mobilization of hydropower. Thermal and renewable energy sources also maintained stable output. The adjustment of electricity selling prices in 2024 further helped the group partially balance its costs.

EVN returned to an investment expansion cycle, with over VND102.7 trillion ($3.92 billion) allocated for investment activities, nearly four times more than the previous year.

Notably, according to EVN, the National Assembly passed a resolution in November 2024 allowing the continuation of the Ninh Thuan nuclear power plant project in the former central province of Ninh Thuan (now part of Khanh Hoa province after a merger), which had been suspended in November 2016.

At the time of the report, EVN was in the process of preparing to restart this critical project. By the end of 2024, it had invested more than VND1.3 trillion ($49.57 million) in the project.

On December 31, 2024, EVN’s total liabilities stood at VND474.63 trillion ($18.1 billion), accounting for about 70% of its total capital. Of this, long-term debt amounted to VND278.91 trillion, mainly consisting of long-term loans and financial leases for investments in power generation and grid infrastructure.

Loan interest expenses were VND3.13 trillion ($119.34 million), unchanged from 2023 despite a larger loan volume. However, the debt-to-equity ratio remained high (above 2.3 times), signaling a tightening financial space and growing reliance on efficient capital turnover from business operations.

Despite posting significant profits, by the end of 2024, EVN still had an accumulated loss of up to VND38.69 trillion ($1.48 billion).