Vinacomin’s Cua Ong coal extraction rig in the northern province of Quang Ninh (Photo: VNA) Hanoi (VNA) - Representativesof the PetroVietnam Securities Incorporated (PSI) and the Vinacomin PowerHolding Corporation told an investors’ conference on July 26 that they wereencouraged by investors’ interest shown in purchasing Vinacomin shares.
Ngo Tri Thinh, general director of Vinacomin PowerHolding Corporation - a subsidiary of the Vietnam National Coal-MineralIndustries Holding Corporation Ltd (Vinacomin), told more than 100 potentialinvestors that his company is well aware of the pressure and competitive natureof the energy sector, and it strives to meet investor expectations with moreeffective management and operation systems.
The Vinacomin Power Holding Corporation became equitised inJanuary 2016 with 6.8 trillion VND (302.4 million USD) in charter capital,under the stock code DTK on the Hanoi Stock Exchange’s (HNX) Unlisted PublicCompany Market (UPCoM).
The company now has 680 million common stocks trading on the UPCoMat 14,000 VND (0.6 USD) per share, same as its preferential price in 2016.According to its 2016 financial report, the company finished with 354 billion VND(15.74 million USD) in post-tax income, down by 29.36 percent from its 2015result.
The Vinacomin Power Holding Corporation is operating seventhermo-electric plants across the country, generating more than nine billionkilowatts per year. The group is considered the third largest power supplier inthe growing Vietnamese power market, following Electricity of Vietnam and thePetroVietnam.
The need for thermo-electricity in the country will reach 245billion kilowatts in 2020 and a staggering 559 billion kilowatt in 2030.
Since the company’s plants are situated in close proximity to coalmines, it has managed to cut down on transportation costs and facilitate thecoal sector’s value chain.
PSI representative explained at the conference that theaforementioned loss could be attributed to the large capital flow intoVinacomin’s power projects. At present, the company’s plants have yet togenerate enough revenue to break even, so it will take a few more years beforethe amount of outstanding debts decline and income goes up.
However, PSI also warned that Vinacomin’s DTK stock has a lowliquidity rate, and could pose risks for investors. As of now, up to 99.68 percentof the company’s shares is owned by the State-owned enterprise Vinacomin, withlow value of free float shares.
Vinacomin’s Deputy General Director Nguyen Van Bien said at theconference that in accordance with the Prime Minister’s orientation for the2016-20 period, Vinacomin plans to restructure all its subsidiaries. Inparticular, the group will divest from its Vinacomin Power Holding Corporationin two phases. The first phase will see the State ownership reducing from 99.68percent to 65 percent and the second phase shifting from 65 percent to 51 percentby the end of 2018.
The group will also divest down to 36 percent from the VinacominHousing and Infrastructure Company Limited, 51 percent at the Vinacomin-ViệtBắc Geology Joint Stock Company, and 65 percent at the Vinacomin MineralsHolding Corporation.
The group hopes to mobilise as many investments at home and abroadas possible, and will give priority to potential investors with strongfinancial ability, experience in the power sector or those willing to commit toa long-term deal with the company, Bien said.
The group plans to announce further plans in the third quarter of2017 to help hesitant investors make their decisions by the end of theyear.-VNA
Ngo Tri Thinh, general director of Vinacomin PowerHolding Corporation - a subsidiary of the Vietnam National Coal-MineralIndustries Holding Corporation Ltd (Vinacomin), told more than 100 potentialinvestors that his company is well aware of the pressure and competitive natureof the energy sector, and it strives to meet investor expectations with moreeffective management and operation systems.
The Vinacomin Power Holding Corporation became equitised inJanuary 2016 with 6.8 trillion VND (302.4 million USD) in charter capital,under the stock code DTK on the Hanoi Stock Exchange’s (HNX) Unlisted PublicCompany Market (UPCoM).
The company now has 680 million common stocks trading on the UPCoMat 14,000 VND (0.6 USD) per share, same as its preferential price in 2016.According to its 2016 financial report, the company finished with 354 billion VND(15.74 million USD) in post-tax income, down by 29.36 percent from its 2015result.
The Vinacomin Power Holding Corporation is operating seventhermo-electric plants across the country, generating more than nine billionkilowatts per year. The group is considered the third largest power supplier inthe growing Vietnamese power market, following Electricity of Vietnam and thePetroVietnam.
The need for thermo-electricity in the country will reach 245billion kilowatts in 2020 and a staggering 559 billion kilowatt in 2030.
Since the company’s plants are situated in close proximity to coalmines, it has managed to cut down on transportation costs and facilitate thecoal sector’s value chain.
PSI representative explained at the conference that theaforementioned loss could be attributed to the large capital flow intoVinacomin’s power projects. At present, the company’s plants have yet togenerate enough revenue to break even, so it will take a few more years beforethe amount of outstanding debts decline and income goes up.
However, PSI also warned that Vinacomin’s DTK stock has a lowliquidity rate, and could pose risks for investors. As of now, up to 99.68 percentof the company’s shares is owned by the State-owned enterprise Vinacomin, withlow value of free float shares.
Vinacomin’s Deputy General Director Nguyen Van Bien said at theconference that in accordance with the Prime Minister’s orientation for the2016-20 period, Vinacomin plans to restructure all its subsidiaries. Inparticular, the group will divest from its Vinacomin Power Holding Corporationin two phases. The first phase will see the State ownership reducing from 99.68percent to 65 percent and the second phase shifting from 65 percent to 51 percentby the end of 2018.
The group will also divest down to 36 percent from the VinacominHousing and Infrastructure Company Limited, 51 percent at the Vinacomin-ViệtBắc Geology Joint Stock Company, and 65 percent at the Vinacomin MineralsHolding Corporation.
The group hopes to mobilise as many investments at home and abroadas possible, and will give priority to potential investors with strongfinancial ability, experience in the power sector or those willing to commit toa long-term deal with the company, Bien said.
The group plans to announce further plans in the third quarter of2017 to help hesitant investors make their decisions by the end of theyear.-VNA
VNA
