Record heat helps electricity companies earn "huge" profits

Record-breaking heat in Vietnam in April has caused electricity companies to increase output and make big profits.

PetroVietnam Power Corporation - Joint Stock Company (stock code POW) announced its business performance in April with a sharp increase in profits despite a decline in the first three months of the year. The company said that April is the end of the dry season in the South, the beginning of the dry season in the Central region, and the beginning of the hot season in the North. The average temperature increased in all three regions, especially in Ho Chi Minh City, which exceeded the historical peak of electricity consumption for many days. The average total market price (FMP) in April increased compared to the first months of the year, expected to reach about 1,745 VND/kWh.

The peak heat in April helps electricity businesses make big profits. NGOC THANG

This has caused the electricity output of POW plants to increase. Specifically, Ca Mau 1 and 2 power plants in April were able to supply gas to meet operational requirements. With favorable market electricity prices, Ca Mau 1 and 2 plants offered operating prices to maximize output. Similarly, Vung Ang 1 power plant, due to the average total market price being higher than the variable cost of coal fuel, offered operating prices to achieve high output and profit in April; Nhon Trach 2 power plant offered operating prices to maximize output; Hua Na power plant offered operating prices to balance optimal profit and water retention for the hot season operation period with high market prices...

The total electricity sales revenue of the corporation in April is estimated to reach nearly VND3,240 billion, up 25% over the same period last year, with the main contribution from Ca Mau 1 and 2 plants and Vung Ang 1. The corporation said that this revenue does not include value added tax, taxes, resource fees, and does not include output and revenue from the market.

POW is a member company of the Vietnam Oil and Gas Group ( Petrovietnam ). According to the announcement, in April, the group's electricity production reached 3.19 billion kWh, exceeding the monthly target by 12.3%, up 22.3% compared to March. The average daily electricity output mobilized in the whole group reached 106 million kWh/day, the highest since the beginning of the year, up 26.4% compared to the average daily mobilization in March. The total revenue of the whole group in the first 4 months is estimated at 308,200 billion VND, up 18% over the same period in 2023. Consolidated pre-tax profit is estimated at 14,900 billion VND, exceeding the target for the first 4 months by 74%...

Dieu Linh (According to thanhnien.vn)

Source: https://baovinhphuc.com.vn/tin-tuc/Id/111094/Nang-nong-ky-luc-giup-doanh-nghiep-dien-thu-loi-nhuan-