EVN reports high revenues, drooping profits

EVN reports high revenues, drooping profits

12/01/2008 -- 9:06 PM

Ha Noi (VNA) – Electricity of Viet Nam (EVN) on January 11 said it sold 58 billion kWh of electricity last year, an increase of 1.2 percent over the yearly target and 13.4 percent over 2006.

The country’s largest electricity producer said strong electricity sales helped bring in total revenue of 56 trillion VND (3.5 billion USD) last year, up 22 percent. Of this, net profits totalled 1.4 trillion VND (87.5 million USD), down 27 percent.

EVN attributed the decrease in profits to a number of difficulties in 2007, including unstable gas supplied for gas-fuelled plants and the sudden breakdowns of several power plants and transmission lines.

According to EVN, close to 66.6 billion kWh of electricity were produced in the country last year.

EVN general director Pham Le Thanh said that the State-owned electricity producer last year invested 36 trillion VND (2.25 billion USD) in business expansion. Of this, 15.4 trillion VND (962 million USD) went to electrical production and 11.4 trillion VND (712 million USD) to distribution.

Last year the corporation also began construction on 23 new power plants, which combined would produce 6,810MW of electricity by 2010.

However, a number of new power plants are already operational as of this past year, including Uong Bi MR1 thermal power plant and Quang Tri, Dai Ninh and Tuyen Quang hydro electric plants.

EVN last year also finished constructing and began operation of a number of electrical lines like the 220kV transmission line connecting China to Viet Nam and a 220kV transmission line connecting Tuyen Quang and Ha Noi’s Soc Son district.

Thanh said the company plans to sell 67.4 billion kWh this year, up 15 percent over 2007, and targeted a revenue of 58 trillion VND (3.6 billion USD), up 3 percent year on year.

The company has stated that demand for electricity grew by 15 percent yearly between 1995 to 2005, and the growth rate was expected to reach 16 percent between 2007 and 2010.

This soaring demand is attributed to both increasing industrial and residential use. Many power shortages are expected in the upcoming period if measures are not taken to increase the power supply.

Over the 2006 to 2010 period, an investment of over 16 billion USD is needed for the development of new transmission and distribution systems in EVN and IPP (Independent Power Plant) projects.

Around 44 new power generation projects are also necessary.

Financing for this development is expected to come from EVN’s own funds, Official Development Assistance loans, Viet Nam’s Development Assistance Fund, commercial loans and foreign export credit, as well as from IPP developers.-Enditem

(VNAgency)