Power Generation Corporation 1 (EVNGENCO1) has just released its audited financial statements for 2017, showing a remarkable big profit compared to 2016.
On March 27, 2018, EVNGENCO 1 has submitted to EVN the amendment and supplementation of the equitization plan of the parent company - EVNGENCO 1. Power Generation Corporation 1 has also completed the business valuation of the parent company and on March 30, 2018 has submitted to EVN the supplementation of the financial settlement plan and the business valuation result at 0.00 am on January 1, 2018.
Nghi Sơn 1 Thermal Power Plant
Currently, EVNGENCO 1 is completing the land use plan after equitization according to Decree No. 167/2017/NĐ-CP and submit it to the Ministry of Finance in compliance with regulation. EVNGENCO 1 also continues cooperating with consulting partner to explain the financial settlement plan and the result of business valuation to EVN and related ministries, ensuring the schedule for the Ministry of Industry and Trade to announce the business valuation of the parent company in June 2018; as well as finalizing the employment plan and business plan of the Corporation after equitization.
At present, the Corporation is still carrying out healthy financial measures under the direction of the Government, the Ministry of Industry and Trade and the Electricity of Vietnam to ensure attractiveness to domestic and foreign investors upon the IPO, building the premise for successful equitization of the parent company – Power Generation Corporation 1.
In terms of business results, net revenue of Genco 1 in 2017 was VND 25,476 billion, rising sharply by 41% year on year as a result of the record of additional revenue from Nghi Son 1 Thermal Power Plant after it was taken over by Genco 1 from EVN. Gross profit margin also increased from 18.7% to 22.6%. By the end of 2017, total outstanding loans (including short-term and long-term loans) of Genco 1 were nearly VND 94,124 billion, up 20% year on year due to the additional loan of VND 15,838 billion from Nghi Son 1 Thermal Power Plant after being handovered to Genco 1.
Thus, the handover of Nghi Son 1 Thermal Power Plant from EVN to EVNGENCO1 is one of the important efforts of EVN and EVNGENCO1 in improving the financial status of EVNGENCO1 before the equitization stage. In fact, the financial situation of EVNGENCO1 by the end of 2017 has been improved significantly compared to the previous time.
In the year 2017, financial expense still accounted for the largest proportion in total operating expenses of EVNGENCO 1, reaching VND 4,544 billion, up 45% year on year. Of which, interest expense accounted for 97.8%, standing at VND 4,447 billion. It was noteworthy in EVNGENCO 1's financial expense that the loss on exchange rate difference from revaluation of year-end balances in previous years allocated to the expense in 2017 was 0 dong, while it was VND 625 billion in 2016.
For the whole year 2017, EVNGENCO 1 recorded a net profit of VND 442.3 billion, doubling that of 2016.