FY 2014 report details results of all activities by electricity giant.
A report on electricity production by Electricity of Vietnam (EVN) puts revenue from selling electricity in Financial Year 2014 at more than VND197.1 trillion ($8.84 billion), with an average selling price of VND1,533 ($0.068) per kWh. Total profits were around VND823.83 billion ($36.96 million).
Total costs for electricity production and sale, however, were around VND198 trillion ($8.88 billion), equal to a price of VND1,540 ($0.069) per kWh.
With such figures, according to the Ministry of Industry and Trade, EVN should have posted a loss as they sold electricity at less than cost.
But besides income from selling electricity EVN also has earnings from activities within electricity production, of around VND1.7 trillion ($76.26 million). Financial activities by the corporation and the National Power Transmission Corporation (EVNNPT) brought in VND1.15 trillion ($51.59 million), while the sale of reactive power totaled VND444 billion ($19.92 million), on top of investments in joint stock companies, etc.
According to Mr. Dinh Quang Tri, Deputy General Director of EVN, however, the profit of VND823.83 billion ($36.96 million) is too low compared to the corporation’s charter capital.
“If we take into account the exchange rate difference, EVN will, of course, record a loss,” said Mr. Tri. “However, the 10- to 20-year loans we have from other countries do not need to be paid immediately and can be repaid gradually.”
Meanwhile, according to the report from an independent audit firm, losses from the exchange rate difference in December 2014 was in the trillions of VND. The exchange rate loss of EVNGENCO1 was VND641.75 billion ($28.79 million), EVNGENCO3 VND810.94 billion ($36.38 million), EVNTPC Hai Phong VND392.12 billion ($17.6 million), and EVNTPC Quang Ninh VND1.26 trillion ($56.52 million).
EVN also said that the electricity price in FY 2014 included the cost of electricity production on islands that are yet to be connected to the national grid.