|The Nhon Trach 2 gas - fired power plant developed by PV Power. (Illustrative photo: tinnhanhchungkhoan.vn)
Ho Cong Ky, Chairman of PetroVietnam Power Corporation (PV Power), unveiled the goal during a June 17 meeting aimed to review the outstanding feats which the firm achieved in the first half of 2019.
PV Power, a subsidiary of State-run Vietnam Oil and Gas Group, focused on carrying out major works in the preparation phase of the two liquefied natural gas (LNG) - fired power projects in the six-month period.
It plans to hold bidding in order to select contractors capable of executing the investigation work and feasibility study (FS) of these projects.
The power firm is scheduled to submit the FS report to the Shareholders General Meeting for approval, slated for April 2020. The bidding to select the Engineering, Procurement, and Construction (EPC) contractor will be conducted following the FS approval.
Earlier, a pre-FS report on the LNG-fired power projects received the Government approval on February 27.
The total basic construction capital set for the two power projects is estimated at US$1.4 billion, including some US$1 billion in loans. Seven domestic banks have pledged to lend a combined total of VND25 trillion (US$1.1 billion), while some international credit institutions have committed to lending up to US$400 million without government guarantees.
LNG-fired power is an essential trend for the future development of Vietnam’s power sector amid various difficulties in expanding power generation from current sources, Chairman Ho Cong Ky noted.
He elaborated that PV Power and other power firms met a string of difficulties when attempting to increase their power generation during the first half of the year.
Challenges persisted in the domestic power generation as the water flow to nationwide hydropower reservoirs, especially in the southern region, remained low due to El Nino effects. In addition, the reserve of Nam Con Son basin and PM3-CAA gas well has been depleting.
Elsewhere, coal-fired power plants also ran into difficulties caused by the limited supply of coal from Vietnam National Coal - Mineral Industries Holding Corporation Limited (Vinacomin) and military-run Dong Bac Corporation, he said.
PV Power sold a total of 10.561 billion kWh to the national grid between January and June 16, or 101 per cent of the projected figure. The corporation’s combined revenues reached VND14.812 trillion (US$636.91 million) during the first five months of 2019. It also posted after tax profits of VND1.319 trillion (US$56.71 million) in the five-month period, representing 129 per cent of the planned number.
PV Power, with the stock code POW, has enjoyed a strong performance and increased financial capacity in the wake of its initial public offering (IPO) which took place in January 2018.
The PV Power chairman underpinned his view that the average value of POW stocks reached VND14.938 (64.2 US cents) at the IPO. POW listed on the Ho Chi Minh Stock Exchange (HoSE) on January 14 this year stood at VND14.900 (64.07 US cents). POW continued to enjoy a bullish period when it closed at VND15.950 (68.58 US cents) on June 17.
This year, PV Power is striving to complete its yearly power generation plan of 21.6 billion kWh and earn VND33.9 trillion (US$1.45 billion) in gross revenue, and VND2.9 trillion (US$124.7 million) in gross profit.
The firm looks to rack up some VND2.3 trillion (US$98.9 million) in after-tax profits this year, far beyond the yearly plan assigned during the 2019 Annual General Meeting.