EVN loses another 13,000 billion VND in the first half of 2024

On the afternoon of July 16, the State Capital Management Committee at Enterprises held a review of the first 6 months of the year and deployed tasks for the last 6 months of 2024.

Speaking at the conference, Mr. Nguyen Anh Tuan - General Director of Vietnam Electricity Group (EVN) said that in the first 6 months of the year, the Group has ensured electricity supply despite the hot and harsh weather. Accordingly, the total electricity production and import output nationwide during this period reached 151.73 billion kWh, an increase of 12.4% over the same period in 2023, exceeding the set scenario.

Referring to the financial picture for the first 6 months of this year, Mr. Tuan revealed a negative financial figure of about 13,000 billion VND, down from the same period last year (negative 15,000 - 16,000 billion VND).

"After 2 consecutive years of losses, the first 6 months of this year lost 13,000 billion VND. By the end of this year, profits will be positive, reducing losses, but there will still be losses," EVN leaders informed.

Mr. Tuan said that the negative figure of 13,000 billion VND is the figure from the Group's 6-month summary report. At the end of the year, after auditing, there will be official figures on the Group's profits.

However, in the last 6 months of the year, he expects to reduce the above losses to about 10,000 billion VND because of the operation of hydropower plants, reducing the cost of purchasing electricity. "The Group has the ability to mobilize cheap electricity sources in the last months of the year, thereby optimizing costs," said Mr. Tuan.

Speaking more about the financial picture in 2023, Mr. Tuan affirmed that almost all costs are saved to the maximum extent. "82% of EVN's cost price is the cost of purchasing electricity. This year's electricity purchase cost saved 2,000 billion VND. The remaining 18% is to optimize EVN's system. But with this 18%, even with savings and optimization, there is no way to offset the costs," Mr. Tuan stated the difficulties the Group is facing.

Previously, EVN announced its consolidated financial report for 2023 with a loss after tax of more than VND 26,770 billion, an increase of 29% compared to the loss of VND 20,747 billion last year.

Fuel prices for electricity production remain high

In the summary report on the implementation of the 2023 plan, EVN said that although EVN and its units have made efforts to implement solutions such as cost savings (saving, reducing 15% of regular costs, from 20-50% of major repair costs), at the same time, the average retail electricity price has been adjusted to increase twice (increased by 3% from May 4, 2023 and increased by 4.5% from November 9, 2023), it is still not enough to offset the cost of electricity production, so it continues to suffer losses in electricity production and business for the second consecutive year.

According to EVN, the main reasons for the increase in electricity production costs are still high fuel prices.

In addition, the structure of power mobilization is not favorable due to poor water situation in hydroelectric reservoirs, causing hydroelectric output to decrease, while increasing the mobilization of coal, oil and renewable energy thermal power plants with higher costs than hydroelectricity. The cost of purchasing electricity in the electricity market is high, and the payment cost is higher than the contracted electricity price.

Source: https://laodong.vn/kinh-doanh/evn-lo-them-13000-ti-dong-nua-dau-nam-2024-1367306.ldo