Renewable energy companies thrive on rising demand

In the first half of 2021, renewable energy projects, especially solar power, brought great profits to investors, boosting the sector's stocks.

Renewable energy companies thrive on rising demand
BCG-CME Long An 1 solar power plant in Thanh Hoa District, Long An Province. Photo bamboocap.com

Bamboo Capital JSC (BCG)’s second quarter financial result showed that its net revenue rose nearly 56 per cent year-on-year to VND814.3 billion (US$35.8 million), resulting in profit after tax of VND315.56 billion, over 16.8 times higher than the same period last year. 

In the first half of this year, the company’s net revenue reached VND1.4 trillion, up 59.7 per cent, with the profit after tax of VND478.3 billion, 17.6 times higher than last year.

In 2020, Vietnam completed and successfully connected more than 100,000 rooftop solar power systems to the national grid, Pham Minh Tuan, CEO of BCG Energy Joint Stock Company (BCG Energy), a subsidiary of BCG, told tinnhanhchungkhoan.vn. The rooftop solar power segment has great potential in the near future on the rising demand for electricity.

BCG Energy will continue to carry out many renewable energy projects to reach the target of 2.0 GW by 2023, while diversifying its investment portfolio with floating solar, wind power and liquefied natural gas to power projects in the future.

In early August, BCG Energy and SP Group (Singapore Power Group), entered into a joint venture to invest in the field of rooftop solar power in Vietnam, with the goal of reaching a capacity of 500 MW of rooftop solar power by 2025. The joint venture also announced the first rooftop solar power project on the factories of Vinamilk. 

Sao Mai Group Corporation (ASM) also said that its two solar power plants are sources of stable revenue and high profits of the company.

During the COVID-19 pandemic, as many industries face difficulties, solar power is still profitable with no payment risk and simple operation management.

With high net profit margin, which is not less than 40 per cent of revenue, the solar power sector contributes nearly VND1 trillion to ASM each year in revenue and nearly VND400 billion in profit.

In the near future, Sao Mai will put the project of solar power exploration on the premises of the enterprise's factory in An Giang into operation and implement the agricultural project under the solar panels.

In the first half of 2021, Sao Mai posted consolidated net revenue of nearly VND6.3 trillion, with profit after tax of VND252 billion.

Sao Mai has just received nearly VND167 billion funded by the Japanese Government after Sao Mai - An Giang Solar Power Plant (phase 3-4 with capacity of 106 MWp) participating in the JCM programme managed by the Ministry of Environment, Government of Japan, to reduce greenhouse gas emissions over 17 years.

This is the first land-based solar power plant in Vietnam to receive a grant under the JCM programme.

Meanwhile, during the first six months of the year, Truong Thanh Development and Construction Investment JSC (TTA) recorded a growth of 95.2 per cent in net revenue to nearly VND331.1 billion. Its profit after tax reached VND76.7 billion, up nearly 82 per cent over last year.

In its statement to the Sate Securities Commission of Vietnam, the company said that the growth was contributed by revenues from two new plants, including Pa Hu Hydropower Plant, starting operation in the fourth quarter of 2020, and Nui Mot Lake Solar Power, on air in January 2021. 

Moreover, the weather conditions as well as the transmission system are more favorable compared to the same period last year.

 

Phuong Mai wind power plant invested by Truong Thanh was put into operation in the second quarter of 2021.

The company determined to boost the development of solar and wind power projects. Its General Meeting of Shareholders in 2021 approved the policy of conducting surveys, preparing to invest in three solar power projects, three wind power projects and pumped storage hydropower project. All these projects are deployed in Ninh Thuan Province.

Of which, Truong Thanh is particularly interested in Phuoc Hoa pumped storage hydropower project with a capacity of 1,200 MW.

In 2021, it plans to achieve a revenue of VND680 billion and a profit after tax of VND150 billion. 

Renewable energy companies’ shares rise

Over the month, renewable energy stocks have all surged. For example, BCG shares climbed from VND12,000 per share on July 27 to VND16,950 on August 27, up 41.25 per cent. Similarly, ASM shares rose by 6.8 per cent, from VND13,150 to VND14,050 per share.

HID shares of Halcom Vietnam inched 10.3 per cent higher during the period. Halcom has just issued a resolution of the Board of Directors on increasing the ownership rate at VKT - Hoa An Solar Plant JSC.

LIG shares of Licogi 13 JSC jumped by 17.4 per cent. It has just approved the transfer of 100 per cent of capital in Quang Tri Solar Power Company Limited to VN Green Holdings, a unit from Singapore. The transfer is worth more than VND456 billion.

Nguyen Huu Quang, Director of Clean Investment of Dragon Capital, said that the dividend rate can be from 9 to 10 per cent each year if investing in renewable companies. Vietnam’s renewable electricity sector is attracting large capital inflows from abroad.

Currently, a hydroelectric project has an investment period of 3 - 5 years and a thermal power project takes nearly 10 years, while it takes less than a year for solar power plant with a capacity of 50 - 10 MW to be put into operation.

Renewable energy is a field with almost no risk of market fluctuations, demand as well as exchange rates, Quang added.

Developing renewable energy is an inevitable trend of the world, while the electricity demand in Vietnam keeps rising, promising a brighter future for the industry.

Source: Vietnam News

Cutting emissions: Navigating conflicting interests

Cutting emissions: Navigating conflicting interests

Despite international efforts and discussions for decades on end, combating greenhouse emissions remains an uphill task.

Vietnam’s renewable energy: Key guidance to investors

Vietnam’s renewable energy: Key guidance to investors

Solar power capacity is increasing thanks to significant changes in feed-in-tariff.

 
 

Other News

.
Vietnam’s economic growth forecast to rebound strongly in 2022
Vietnam’s economic growth forecast to rebound strongly in 2022
BUSINESSicon  13/01/2022 

Some foreign financial organisations have issued relatively positive predictions for Vietnam’s economy this year, with growth expected at 6.5 - 6.7 percent.

Three factors behind FDI attraction in Vietnam
Three factors behind FDI attraction in Vietnam
BUSINESSicon  13/01/2022 

Low labour costs, a geographical location close to Asian supply chains, and Japan and the Republic of Korea (RoK)'s efforts to promote greater overseas investment are considered as three factors in boosting Vietnamese foreign direct investment (FDI).

Power Development Plan VIII under revision again
Power Development Plan VIII under revision again
BUSINESSicon  13/01/2022 

The draft Power Development Plan VIII is being revised again and expected to be submitted to the Prime Minister for approval in the first quarter of 2022.

M&A in technology booms during pandemic
M&A in technology booms during pandemic
BUSINESSicon  13/01/2022 

The Mergers and Acquisitions (M&A) market in Viet Nam has been going through a downturn due to the pandemic, but the technology sector is bucking the trend.

Auction mechanism for sustainable development of renewable energy market under scrutiny
Auction mechanism for sustainable development of renewable energy market under scrutiny
BUSINESSicon  13/01/2022 

A Policy Dialogue on “Auction Mechanism for Sustainable Development of the Renewable Energy Market” was held via an online format on January 11 by independent think tank Vietnam Initiative for Energy Transition (VIETSE).

Transport Ministry proposes allowing private firms to invest in airport projects
Transport Ministry proposes allowing private firms to invest in airport projects
BUSINESSicon  13/01/2022 

The Ministry of Transport has proposed mobilizing private resources under the public-private partnership model for new airport projects, such as Quang Tri, Sa Pa and Cao Bang.

Trinh Van Quyet’s transaction canceled, securities accounts blocked
Trinh Van Quyet’s transaction canceled, securities accounts blocked
BUSINESSicon  12/01/2022 

An unreported transaction made by Trinh Van Quyet, Chair of FLC Group, worth VND1.6-1.8 trillion on January 10 has been canceled as he did not report the deal.

Tan Hoang Minh Group withdraws from Thu Thiem land auction, accepts loss of deposit
Tan Hoang Minh Group withdraws from Thu Thiem land auction, accepts loss of deposit
FEATUREicon  12/01/2022 

Tan Hoang Minh Group has sent a letter to the Party, State and Government leaders, and HCM City People’s Committee about its decision to withdraw from Thu Thiem land purchase that it won at auction in mid-December.

Land prices soar amid fear for Omicron
Land prices soar amid fear for Omicron
FEATUREicon  13/01/2022 

While affordable apartments are no longer seen in Hanoi and HCM City, apartments priced at hundreds of billions of dong are becoming popular.

Bad debts need to be curbed
Bad debts need to be curbed
BUSINESSicon  13/01/2022 

After the Circular issued by the State Bank of Vietnam on debt restructuring, many bad debts of commercial banks have become non-bad debts because they do not have to change the debt groups.

Vietnam ranks third worldwide in terms of rubber export value
Vietnam ranks third worldwide in terms of rubber export value
BUSINESSicon  12/01/2022 

Vietnam ranked third in the world in terms of rubber export value, with 3.24 billion USD in 2021, up 36.2 percent from the previous year, the Ministry of Agriculture and Rural Development (MARD) said.

China reopens one more border gate with Vietnam for fresh fruit imports
China reopens one more border gate with Vietnam for fresh fruit imports
BUSINESSicon  12/01/2022 

Chinese authority on January 12 re-opened its Hekou International Border Gate for imported fresh fruits, including dragon fruit, and frozen foods from Vietnam, according to the Ministry of Industry and Trade.

Vietnamese banks’ charter capital surged in 2021
Vietnamese banks’ charter capital surged in 2021
BUSINESSicon  12/01/2022 

Banks increased their charter capital by more than VND110 quadrillion in 2021 - the highest annual growth to date - to enhance financial strength and meet the central bank’s regulations.

VN to boost domestic 'supporting industries'
VN to boost domestic 'supporting industries'
BUSINESSicon  12/01/2022 

Vietnam is looking to work closely with foreign firms such as Samsung and Toyota to boost the supply of parts within the country, according to the Ministry of Industry and Trade.

Market potential of elderly service industry growing fast
Market potential of elderly service industry growing fast
BUSINESSicon  13/01/2022 

The increasing demand for services for the elderly has created investment and business opportunities for local and foreign investors.

VIETNAM BUSINESS NEWS JANUARY 12
VIETNAM BUSINESS NEWS JANUARY 12
BUSINESSicon  12/01/2022 

Tra fish exports predicted to hit 1.7 billion USD this year

Vietnam first Southeast Asian country to earn over US$1 billion from exports to Hungary
Vietnam first Southeast Asian country to earn over US$1 billion from exports to Hungary
BUSINESSicon  12/01/2022 

Vietnam has become the first Southeast Asian nation to earn over 1 billion USD from exporting goods to Hungary and the European country’s leading exporter from this region since 2000, according to the Ministry of Industry and Trade.

Vietnam has 683,600 operational firms: economic census
Vietnam has 683,600 operational firms: economic census
BUSINESSicon  12/01/2022 

As of December 31, 2020, Vietnam counted 683,600 operational enterprises, up 35.3 percent from 2016, the 2021 economic census revealed.

Hanoi to welcome launch of 26,000 apartment units in 2022: C&W Vietnam
Hanoi to welcome launch of 26,000 apartment units in 2022: C&W Vietnam
BUSINESSicon  12/01/2022 

Around 26,000 apartment units are expected to be launched in Hanoi in 2022, signaling a vibrant outlook for the segment, according to real estate service provider Cushman & Wakefield (C&W) Vietnam.

Laos top recipient of Vietnam’s overseas investment
Laos top recipient of Vietnam’s overseas investment
BUSINESSicon  12/01/2022 

Laos has been the largest recipient of Vietnam's overseas investment so far, with 209 projects totalling 5.1 billion USD in registered capital, Minister of Planning and Investment Nguyen Chi Dung has said.

 
 
 
Leave your comment on an article

OR QUICK LOGIN