PV Power wants to divest completely from EVN Int’l
VIETNAM’S PV Power (POW) has announced approval for a plan to transfer its shares in EVN International JSC (EIC).
Accordingly, PV Power plans to divest more than 2.8 million EIC shares, equivalent to 7.85 per cent of capital.
The transaction is expected to be done by order matching method on the Hanoi Stock Exchange (HNX).
EVN International operates in the field of electricity generation and distribution.
In the shareholder structure of EVN International, Power Generation Corporation 1 is the largest shareholder holding more than 26 per cent of capital, while Pha Lai Thermal Power JSC is the second-largest shareholder with more than 19 per cent capital. The remaining shares belong to a number of other institutional and individual shareholders.
PV Power has also announced to divest all 30 million shares of Viet Lao Power JSC (VLP), reducing its ownership from 8.64 per cent to 0 of charter capital.
The divestment at the two enterprises was in line with expectations from BSC Securities Co in its recent update report.
BSC said that in 2021, PV Power divested 19.9 million shares, equivalent to 51.6 per cent of shares of PVMachino JSC (PVM).
The securities firm believed that this year the company may continue to divest capital in Viet Lao Power JSC and EVN International. The amount of capital contributed in the two enterprises is 320 billion dong ($14 million) and 28.8 billion dong, respectively, according to PV Power’s financial statements for the fourth quarter of 2021.
Revenues from the divestment are expected to be an additional financial source to help PV Power have enough resources to deploy projects such as Nhon Trach 3 and Nhon Trach 4.
Nhon Trach 3 and 4 power plants, with a total capacity of 1,500MW, are expected to start construction in the first quarter of 2022 and begin to operate in 2024-2025. This is the future growth engine for PV Power and is also in line with the trend of shifting from coal power to liquefied natural gas (LNG).
In February, PV Power’s output reached 890.3 million kWh. For the first two months of the year, PV Power has achieved an output of 2.082 billion kWh.
Its revenue reached 1.56 trillion dong last month, exceeding 20 per cent of the monthly plan but down 25 per cent over the same period last year.
In the first two months of the year, the company’s revenue fell 19 per cent year-on-year to 3.72 trillion dong. The largest contributors to the company’s revenue were Ca Mau 1 and 2, Nhon Trach 1 and 2 power plants.
In 2022, PV Power sets a target of total expected electricity output of 13.9 billion kWh, resulting in total revenue of 24.24 trillion dong and profit before tax as planned at 1.01 trillion dong. Compared to last year, this plan’s target declines by 56 per cent.