Report and Assessment of the Board of Management
Assessment of production and business activities
In 2024, the unpredictable fluctuations in the context have caused many difficulties and challenges in the planning and operation of EVNGENCO3. The changes in the electricity market operation methods, along with the continued sharp decline in domestic gas supply, high input fuel costs, and extreme weather phenomena, are the factors that directly impact the operations of the electricity sector. In addition, the USD/VND exchange rate on December 31, 2024, increased by 4.63% compared to the beginning of the year, which significantly affected the Corporation’s profit.
Facing with challenges, the entire leadership team and staff of EVNGENCO3 have united, utilizing all resources to overcome obstacles and achieve the highest completion of the plan and tasks for 2024, obtaining notable results. The electricity production output of EVNGENCO3 in 2024 (including development units and joint-stock companies) reached 26.437 billion kWh, achieving 91.95% of the target approved by the Annual General Meeting of Shareholders; achieving 113.92% of the target by EVN/MoIT. EVNGENCO3’s power plants have generally operated stably, meeting the mobilization requirements of the national power system.
The power plants ensured stable operations, meeting the mobilization requirements of the power system, especially during the peak dry months of 2024, contributing to the completion of the electricity production mission, supporting the development of the economy and society, and serving the needs of the people.
The Corporation effectively achieved 8 out of 10 economic and technical targets as planned, thanks to the implementation of a number of synchronized solutions such as reducing heat loss, improving the availability factor of hydroelectric power, and reducing the self-consumption rate of coal-fired and hydroelectric power plants…
Maintenance and repair work has been completed safely, with quality, and on schedule, contributing to ensuring electricity production. The Corporation has effectively carried out major repair projects for both internal and external EVN customers.
From March 1, 2024, the Corporation took over the operation and maintenance (O&M) management of Phu My 3 Thermal Power Plant under the O&M contract with EVN; preparing all necessary resources to take over the O&M of Phu My 2.2 Thermal Power Plant starting from February 14, 2025.
During the year, EVNGENCO3 successfully carried out 09 major repairs for the turbine units and several other major repairs for auxiliary works; resulting in a cost saving of approximately 83.3 billion VND, equivalent to a 16% reduction compared to the plan.
In 2024, EVNGENCO3 has made efforts to implement project management, promoting the construction of works to ensure progress and quality, completing 99.02% of the plan, with the projects where the Corporation is the investor reaching 97.95%.
In addition to traditional electricity fields, the Corporation continues to focus on investing in green, clean energy: seeking opportunities to cooperate in providing liquefied gas fuel for the operation of gas turbine power plants; signing cooperation agreements for the development of offshore wind power; the flexible ICE power plant in Ninh Binh; and converting biomass fuel to meet environmental standards for power plants.
With the philosophy of ‘Putting people at the center’ EVNGENCO3 focuses on building a team of highly capable personnel, ensuring a sustainable workforce as a solid foundation for the Corporation’s strong transformation steps. The company always emphasizes the development of intellectual abilities alongside physical capabilities, proactively implementing specialized technical training programs, mastering technologies, and replacing foreign experts in areas such as repairs, and preparing for the management and maintenance (O&M) of offshore wind power plants, etc,…
EVNGENCO3 strengthens the development and enhances the effectiveness of corporate culture, creating new values to continuously elevate the brand in the future.
Financial situation
EVNGENCO3’s total consolidated revenue in 2024 reached VND 41,158 billion, down 11.65% over the same period in 2023.
In 2024, EVNGENCO3 recorded VND 1,293 billion in foreign exchange loss different, mainly due to the strong increase in the USD, which strongly affected the Corporation’s production and business results, resulting in a negative pre-tax profit of VND 871 billion.
As of December 31, EVNGENCO3’s assets reached more than 55,267 billion VND, short term 16,821 billion VND, long term 38,446 billion VND accounting for 69.56% of total assets, primarily consisting of fixed assets with a remaining value of 33.015 billion VND. As EVNGENCO3 is a power generation company, fixed assets make up a significant proportion of its total assets.
As of December 31, 2024, total liabilities amounted to 40,697 billion VND, including short-term debt of 13,814 billion VND and long-term debt of 26,883 billion VND, making up 66.06% of total liabilities. Of this, loans accounted for 31,895 billion VND, a decrease of 4,116 billion VND compared to the same period last year. In recent years, EVNGENCO3 has made continuous efforts to reduce loan debt. The debt-to-equity ratio as of December 31, 2024, was 2.79 times, which is below the regulatory threshold of 3 times.
In 2024, a partial restructuring of the KEXIM loan for the Mong Duong 1 Thermal Power Plant project (USD 81.5 million) was carried out using domestic commercial loans.