POW Flash News – N/A

PetroVietnam Power Corporation (HoSE: POW)

POW announced Q4/2024 results with VND8,493 bn in revenue, +25.0% YoY, and VND186 bn in NPATMI, -37.2% YoY. In 2024, total revenue reached VND30,180 bn, +6.5% YoY, and NPATMI was VND1,252 bn, +20.6% YoY, including VND1,084 bn in insurance compensation for VA1, thereby completing 152% of the 2024 plan and 145% of ACBS’s forecast.

In Q4/2024, revenue witnessed a significant increase of 25.0% YoY, primarily driven by a substantial surge in output, which reached 4.6 bn kWh, +41.4% YoY. This output was generated from gas-fired power plants (CM1&2: 1.7 bn kWh, +46.0% YoY; NT2: 822 mil kWh, +104.4% YoY) and the VA1 coal thermal with 1.7 bn kWh, +39.6% YoY. 

However, it is noteworthy that gas and coal-fired thermals typically exhibit thinner gross margins compared to hydropower. Compounding this inherent characteristic, the elevated prices of input materials, specifically gas and coal, resulted in a contraction of the gross margin to 6.4% from 18.4% last year. Consequently, Q4/2024’s gross profit amounted to VND540 bn, -56.8% YoY.  Netmargin declined to 2.2% from 4.4% in Q4/2023 and NPATMI reached VND 186 bn, -37.4% YoY, despite the inclusion of VND1,084 bn in insurance compensation for the incident at the VA1.

For 2024, the electricity output reached 16.1 bn kWh, +11.3% YoY, and revenue amounted to VND30,180 bn, +6.5% YoY and NPATMI reached VND1,252 bn, + 20.6% YoY

By Q4/2024, the disbursement progress for the NT3&4 project achieved 95% of the target, with a recorded of VND19,743 bn. In Jan 2025, the NT3 successfully achieved its first firing and commercial operation is anticipated to commence in Q2/2025.

Quick conclusion: POW completed 152% of the 2024 business plan and 145% of our forecast for 2024, however, most of the profit came from insurance compensation fees while core profit decreased. Therefore, we need to reassess the upcoming impacts such as the operating capacity of the NT2 plant, the input LNG gas price for NT 3&4, the La Nina 2025-2026 cycle, etc. and will update the valuation and forecast for POW in the next report.