Vĩnh Sơn-Sông Hinh Hydropower Plant JSC (VSH). VSH experienced an 88 per cent decline in after-tax profit in Q3 2023, amounting to VNĐ26 billion, compared to VNĐ221 billion profit during the same period the previous year. — Photo VSH

HÀ NỘI The electricity industry faces diminished performance in Q3 as profits plummet due to the struggles of hydropower and thermal power businesses.

Nhơn Trạch 2 Thermal Power, in particular, recorded a significant loss, adding to the industry's concerns.

The transition from La Nina to El Nino weather patterns has adversely impacted the hydrological conditions, leading to a significant drop in profits for most hydropower enterprises in Q3 2023 compared to the same period last year.

Vĩnh Sơn - Sông Hinh Hydropower Joint Stock Company (VSH) experienced an 88 per cent decline in after-tax profit in Q3 2023, amounting to VNĐ26 billion, compared to VNĐ221 billion profit during the same period the previous year.

The decrease in profit can primarily be attributed to a 41 per cent decline in revenue, reaching VNĐ382 billion, while the cost price only decreased by 11 per cent to VNĐ222 billion. The company also faced expenses related to interest and business management costs, similar to the previous year.

Similarly, Thác Bà Hydropower Joint Stock Company (TBC) witnessed a 57 per cent decrease in revenue, reaching VNĐ82 billion in Q3 2023. The company reported an after-tax profit of VNĐ23 billion, down 78 per cent compared to the same period in 2022.

The decline in electricity revenue was mainly attributed to lower water levels and reduced water flow, resulting in a significant drop in commercial electricity output.

A Vương Hydropower Joint Stock Company (AVC) reported a 60 per cent decrease in revenue, amounting to nearly VNĐ119 billion, and a 73 per cent decline in after-tax profit, reaching VNĐ49 billion in Q3 2023 compared to the same period last year.

However, due to substantial profits in the first quarter, AVC still achieved an after-tax profit of VNĐ281 billion in the first nine months, surpassing the full-year profit plan by 164 per cent.

Huả Na Hydropower Joint Stock Company (HNA) managed to turn its performance around and reported an after-tax profit of VNĐ106 billion in Q3 2023, though it was still 61 per cent lower than the previous year.

However, in the first nine months, the company's after-tax profit reached VNĐ152 billion, reflecting a 63 per cent decrease compared to the same period last year.

In Q3, several thermal power enterprises also encountered losses.

Nhơn Trạch 2 Petroleum Power Joint Stock Company (NT2) experienced a record loss since its listing in 2015. NT2 reported an after-tax loss of VNĐ124 billion, contrasting with the VNĐ199 billion after-tax profit achieved during the same period last year.

This loss can be attributed to a significant decrease in electricity production revenue, primarily caused by NT2's factory undergoing maintenance from September 7. The company's net revenue in Q3 plummeted by 62 per cent compared to the previous year, amounting to VNĐ816 billion.

In the first nine months, NT2's after-tax profit declined to VNĐ256 billion, marking a 65 per cent decrease compared to the same period last year and only achieving 54 per cent of the year's after-tax profit target.

Similarly, Ninh Bình Thermal Power Joint Stock Company (NBP) reported an after-tax loss of VNĐ2.4 billion in Q3, while it managed to achieve a profit of VNĐ1.4 billion during the same period last year. Over the first nine months, NBP's after-tax profit reached VNĐ14.5 billion, reflecting a 24 per cent decline compared to the same period last year.

Quảng Ninh Thermal Power Joint Stock Company also experienced a significant profit decrease of 92 per cent in Q3 2023, amounting to only VNĐ12 billion. The company conducted scheduled maintenance on the generator set during this period, resulting in reduced commercial electricity output, revenue, and overall profitability.

On a more positive note, PetroVietnam Power Joint Stock Corporation (POW) achieved a profit of VNĐ31 billion in Q3 2023, surpassing the previously estimated loss of VNĐ47 billion forecast by the company.