Positive business results

BCG Energy's audited consolidated semi-annual financial report for 2024 was audited by PwC, a Big 4 global auditing firm. Compared to the same period last year, BCG Energy's net revenue in the first six months of 2024 increased by nearly 22%, and after-tax profit surged 33 times. BCG Energy's electricity production in the first six months of 2024 increased by 30% compared to the same period in 2023, reaching 416.5 million kWh.

Electricity production showed positive growth compared to the same period in 2023 thanks to the Phu My Solar Power Plant Phase 2 with a capacity of 114 MW, which commenced commercial operation in June 2023. In addition, other solar power plants and rooftop solar power projects also recorded positive operating 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 growing thanks to the commercial operation of a portion of the Krông Pa 2 solar power project with a capacity of 21 MW/49 MW in Gia Lai , along with contributions from ongoing rooftop solar power projects.

The company's financial costs have been optimized, and interest expenses have decreased significantly. Profits are expected to increase due to the recognition of exchange rate gains resulting from the cooling of the US dollar exchange rate. As of June 30, 2024, BCG Energy's consolidated total assets reached VND 19,964.8 billion, a 5% increase from 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 the Tam Sinh Nghia waste-to-energy plant (Cu Chi, Ho Chi Minh City) by BCG Energy has a capacity of 2,000-2,600 tons of waste per day. (Rendering image)

BCG Energy's debt-to-equity ratio continued to improve over the years, decreasing from 1.9 times on December 31, 2022, to 0.99 times on June 30, 2024. The debt-to-equity ratio also significantly declined from 1.25 times at the end of 2022 to 0.64 times by mid-2024. These positive changes not only strengthened the company's financial capacity but also mitigated financial risks from the market.

3 core competencies

BCG Energy is among the largest renewable energy companies in Vietnam. Over the years, BCG Energy has developed based on three core competencies: project development, management, and operation capabilities; M&A and post-M&A project restructuring capabilities; and project financing capabilities. At the end of July 2024, 730 million shares of BCG Energy were officially traded on the UPCoM exchange. Many financial institutions highly value the potential of BCG Energy shares because it is a direct beneficiary of the National Power Development 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.

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

Currently, BCG Energy is developing a 550 MW wind power plant. The company has also recently commenced construction of the Tam Sinh Nghia waste-to-energy plant in Cu Chi District, Ho Chi Minh City. Phase 1 of the plant is expected to be completed by the end of 2025 or early 2026. With a Phase 1 capacity of incinerating 2,000-2,600 tons of waste per day, the Tam Sinh Nghia waste-to-energy plant will help Ho Chi Minh City process approximately 20-25% of the city's total daily waste.

With positive business results in the first half of 2024, BCG Energy is highly likely to achieve its business plan for the year. The series of large-scale energy projects currently underway, 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)