Vietnam’s utility major REE records 27% net profit growth in Q1 on power segment surge

Private utility firm REE Corporation posted strong profit growth in Q1, primarily driven by a significant improvement in its power segment compared to the same period last year.

REE, listed on the Ho Chi Minh Stock Exchange (HoSE) as REE, recorded nearly VND2.07 trillion ($77.07 million) in net revenue in Q1, a 13% increase year-over-year, while the cost of goods sold rose by 2%.

As a result, gross profit surged to VND950 billion ($36.53 million), up 208%, according to its newly-released Q1 consolidated financial statement.

Other financial indicators also showed positive performance. Financial income rose 57% to VND110 billion ($4.22 million), while financial expenses dropped 15% to VND191 billion ($7.34 million).

Profit from associated companies climbed 16% to VND140 billion ($5.38 million).

Net profit for the quarter reached VND611 billion ($23.49 million), up 27% year-over-year. This represents 20% of the year's revenue target and nearly 34% of the year's after-tax profit goal, as approved at the 2025 AGM of shareholders.

According to REE, the power segment was the key contributor to the profit surge, particularly through affiliate companies such as Vinh Son-Song Hinh Hydropower, listed on the HoSE as VSH, and Central Hydropower, listed as CHP.

Specifically, the electricity infrastructure segment generated VND413 billion ($15.88 million) in net profit in Q1, up 73% year-on-year.

In contrast, the real estate leasing segment declined during the quarter. The company attributed this to the early-stage operation of the e.town 6 building, where operating expenses exceeded revenue due to ongoing efforts to lease out the space.

As of end-Q1, REE’s total assets stood at nearly VND36.9 trillion ($1.41 billion), up slightly from the start of the year. Short-term assets totaled nearly VND12 trillion ($461 million), an increase of 5%, while cash and deposits remained stable at nearly VND6 trillion ($230.7 million). Inventory rose by 8% to nearly VND1.4 trillion ($53.8 million), primarily due to unfinished production and business costs.

On the liabilities side, total payables dipped slightly to VND13.7 trillion ($526.8 million), most of which was long-term debt. Short-term debt also declined marginally to nearly VND4 trillion ($153.8 million), including over VND 1.26 trillion ($48.45 million) in bank loans.

Given that the company’s cash holdings exceed its short-term debt, REE’s debt repayment capacity remains strong.