Positive business results

BCG Energy's audited consolidated financial statements for the first half of 2024 were audited by PwC, a global Big 4 auditing firm. Compared to the same period last year, BCG Energy's net revenue in the first 6 months of 2024 increased by nearly 22% and its after-tax profit increased by 33 times. BCG Energy's electricity output in the first 6 months of 2024 increased by 30% compared to the same period in 2023, reaching 416.5 million kWh.

Electricity output will grow positively compared to the same period in 2023 thanks to the Phu My Solar Power Plant Phase 2 with a capacity of 114 MW, which will be put into commercial operation from June 2023. In addition, other solar power plants and rooftop solar power projects also recorded positive performance.

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The Direct Power Purchase Agreement (DPPA) opens up many opportunities for renewable energy businesses like BCG Energy.

BCG Energy's revenue in the second half of 2024 is expected to continue to grow thanks to the partial commercial operation of the Krong Pa 2 solar power project with a capacity of 21 MW/49 MW in Gia Lai , along with contributions from rooftop solar power projects being deployed.

The company's financial costs are optimized, and interest expenses have decreased sharply. Profits are expected to increase due to the exchange rate difference that will be recorded from the "cooling down" of the US dollar exchange rate. As of June 30, 2024, BCG Energy's total consolidated assets reached VND 19,964.8 billion, up 5% compared to the beginning of the year. The company's total liabilities increased slightly by 7% to VND 9,944.1 billion, mainly due to debts related to the construction of the Cu Chi waste-to-energy project at Tam Sinh Nghia Investment and Development Joint Stock Company.

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Phase 1 of BCG Energy's Tam Sinh Nghia Waste-to-Energy Incineration Plant (Cu Chi, Ho Chi Minh City) has a capacity of 2,000-2,600 tons of waste/day. Perspective image

BCG Energy's debt-to-equity ratio continues to improve over the years, from 1.9x as of December 31, 2022, to 0.99x as of June 30, 2024. The debt-to-equity ratio also sharply decreased from 1.25x at the end of 2022 to 0.64x in mid-2024. These positive changes not only help strengthen the company's financial capacity but also minimize financial risks from the market.

3 core competencies

BCG Energy is one of the largest renewable energy companies in Vietnam. Over the years, BCG Energy has developed based on three core competencies: the ability to develop, manage and operate projects; the ability to M&A and restructure projects after M&A; and the ability to mobilize capital for projects. At the end of July 2024, 730 million shares of BCG Energy were officially traded on the UPCoM floor. Many financial institutions highly appreciate the potential of BCG Energy shares because this is a direct beneficiary of the Power Plan VIII, owning 8 wind power projects with a total capacity of up to 925 MW that are prioritized for implementation in the coming period.

In addition, the Government has issued a Decree on the Direct Power Purchase Agreement (DPPA), allowing renewable energy plants to sell electricity directly to large electricity users, instead of only being allowed to sell to Vietnam Electricity Group as before. With a total capacity of about 600 MW of solar power in operation, BCG Energy is one of the renewable energy enterprises that has greatly benefited from the DPPA mechanism.

Currently, BCG Energy is developing 550 MW of wind power. The company has also just started construction of the Tam Sinh Nghia Waste-to-Energy Plant in Cu Chi District, Ho Chi Minh City, with the first phase of the plant expected to be completed by the end of 2025 or early 2026. With a capacity of 2,000-2,600 tons of waste per day in phase 1, the Tam Sinh Nghia Waste-to-Energy Plant will help Ho Chi Minh City process about 20-25% of the city's total waste volume each day.

With positive business results in the first half of 2024, BCG Energy is likely to complete this year's business plan. A series of large-scale energy projects being implemented, once operational, will help BCG Energy increase its total power generation capacity and strengthen the Company's position in the energy industry.

(Source: BCG Energy)