Vung Ang power thermal plant reports profit after tax of 56.6 million USD, surpassing the target by 29 percent. (Photo: pvpower.vn)

Hanoi (VNS/VNA) - PV Power, an subordinate company of the Vietnam Oil and Gas Group (PetroVietnam), reported positive business results in the first five months of this year despite difficulties the company faced in generating power.

Ending May, PV Power generated more than 9.4 billion kWh, completing its target set for the reviewed period. As of June 16, power generation reached 10.56 billion kWh.

This was an encouraging result given difficulties the company faced since early this year, chairman of the PV Power’s board of directors Ho Cong Ky told local media.

Ky pointed out three issues facing power generation companies this year, of which climate change, especially the El Nino phenomenon, is drying lakes at hydropower plants while the declining gas source and coal supply are pressuring the generation capacity of thermal power plants.

“The coal supply for coal-fired power plants has never suffered the situation of ‘living hand to mouth’ like at present,” Ky said, adding that coal provided by the Vietnam National Coal-Mineral Industries Holding Corp Ltd (Vinacomin) has been declining.

At the meeting, he also reported financial results of the company, of which revenues of the whole corporation reached 14.8 trillion VND (635.2 million USD) in the first five months. Its profit after tax is estimated at 1.3 trillion VND (56.6 million USD), surpassing the target by 29 percent.

The company paid nearly 481 billion VND to the State budget during this period.

In 2019, PV Power aims for total revenue of 33.9 trillion VND and net profit of 2.3 trillion VND. After five months, the company completed 45 percent of its annual revenue target and 58 percent of its profit plan by year-end.

Regarding its investment activities this year, PV Power is hastening efforts to complete the feasibility study report for the Nhon Trach 3, 4 thermal power projects for submission at the annual shareholders’ meeting next year. After getting approval, it will organise bidding to select the EPC (Engineering Procurement Construction) contractors.

The objective of the company was to comply with the Government’s requirement of starting commercial production of the two power plants in 2023, Ky said.

Besides, PV Power is also preparing an investment plan for the Luang Prabang hydropower project in Laos of which PV Power is expected to contribute 38 percent of capital. He said the company was building a special investment mechanism for this project to submit to the Government to ensure the company’s shareholders’ interest.

The project has two construction schemes: one transferring electricity to Vietnam will cost about 4.2 billion USD while the other connecting to Thailand is expected to cost about 3.8 billion USD.

Shares of the company, coded POW on the Ho Chi Minh Stock Exchange, are being traded around 15,800 VND (0.68 USD) per share, valuing the company at 37.35 trillion VND (1.6 billion USD).–VNS/VNA