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GEG’s Business Indicators in Q1/2024
Source: VietstockFinance
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In Q1/2024, GEG achieved a consolidated net revenue of 739 billion VND, a 35% increase year-on-year, mainly from electricity sales. Of which, revenue from wind power accounted for 61%, reaching 448 billion VND; solar power accounted for 31% of electricity sales revenue, reaching 224 billion VND. In addition, the hydropower plants contributed 27 million kWh, generating 57 billion VND in revenue, accounting for 8% of electricity sales revenue.
After deducting the cost of goods sold, gross profit amounted to 418 billion VND, up 34%.
Financial expenses were recorded at 246 billion VND, an increase of 29% year-on-year, mainly interest expenses (242 billion VND) from Tan Phu Dong 1 wind power plant. This expense eroded most of the Company’s profit. However, at the end of the first quarter, GEG still recorded a net profit of 90 billion VND, up 40% year-on-year.
Accumulated from 2019 to the end of Q1/2024, GEG supplied 4.8 billion kWh to the grid and supplied electricity to about 1.8 million households, reducing greenhouse gas emissions by 2.4 million tons of CO2.
According to GEG‘s explanation, the surge in revenue comes from the fact that Tan Phu Dong 1 Wind Power Plant has been operating since June 2023 and has been approved for a provisional price of 50%. In addition, the characteristics of wind power in the region will be favorable in the first quarters of the year, so it will contribute significantly to revenue.
As of the end of the first quarter, GEG‘s total asset value exceeded 16 trillion VND, remaining flat compared to the beginning of the year. Of which, nearly 1.7 trillion VND is current assets, up 15% over the beginning of the year. The cash and cash equivalents held remained unchanged at 448 billion VND.
On the other side of the balance sheet, total liabilities remained unchanged, recording nearly 10.3 trillion VND. Of which, 1.7 trillion VND is short-term debt.
Total borrowings amounted to nearly 10 trillion VND, a slight decrease compared to the beginning of the year, mostly long-term debt. The interest coverage ratio was maintained at 1.6 times, above the safe threshold.
Regarding operations, in April 2024, GEG received the Climate Bond Certification from the Climate Bonds Initiative (CBI) – an international organization that works to mobilize global capital for climate action.
