PV Power (HOSE: POW) | 2025 POW AGM Note

MANAGEMENT SETS CONSERVATIVE GUIDANCE AMID 2 NEW LNG POWER PLANTS OPERATION

2025 Business guidance 

o       Revenue: VND 38.2 tn (+26% YoY)

o       NPAT: VND 439 bn (-64% YoY)

Management has adopted a cautious approach in setting this year’s profit target, primarily due to concerns over potential losses from Nhon Trach 3 & 4 power plants in two years of operation which come from depreciation, along with expected foreign exchange losses tied to USD-denominated loans used to finance these projects.

Investment and Operations Update

o       Capital Expenditure: Total investment requirement stands at approximately VND 6.6 trillion to complete the construction of Nhon Trach 3 & 4 gas-fired power plants. Of this, VND 1.9 trillion will come from internal resources. Estimated disbursement in 2025 is projected at VND 9.1 trillion.

o       Scheduled Maintenance: Key maintenance activities include a major overhaul at Hủa Na Hydropower Plant, minor repairs at Ca Mau 1 Thermal Power Plant, Nhon TTrach 2, and Dakdrinh Hydropower Plant.

o       Equitization Progress: POW continues to work closely with PVN and relevant authorities to finalize the post -equitization settlement process, aiming to increase the charter capital of the parent company.

2025 Business outlook

o       POW will complete the GSA agreement with PV GAS for LNG supply to Nhon Trach 3 & 4. In 2025, Quantity committed (Qc) are assigned m8.3bn, and hydropower plants are assigned monthly. The total Qc for PV Power in H1 is8.3bnn, and hydropower plants are assigned monthly. The total Qc for PV Power in H1 is8.3bnn kWh.

o       Nhon Trach 1 & 2 will rely on existing gas contracts, while POW explores LNG and the Su Tu Trang field development.

o       Ca Mau plant currently receives gas from a field near Malaysia, but this supply will deplete. POW is working with the parent company to supplement the gas, either by adding a pipeline from Block B or purchasing additional LNG.

o       POW will operate its new office and continue projects like Quang Ninh combined-cycle gas turbine and Luang Prabang hydropower. Domestic natural gas is depleting, requiring more investment in LNG.

o       More than half of the compensation for the Vung Ang 1 project has already been settled, with the remaining VND 400 – 500 billion under active negotiation with PVI. The company is pushing to finalize the process promptly to avoid having to make provisions for bad debt, with resolution expected by Q2,3/2025.

Dividend policy 

o       No dividend distribution in 2025 to focus financial resources on priority needs, including debt repayment following large capital investments into the Nhon Trach 3 & 4 gas plants. Future projects ·         Continue developing LNG power plants such as Quynh Lap (Nghe An), Vung Ang 3 (Ha Tinh), and expanding the Ca Mau plant. 

o       Explore investment in renewable energy projects, such as the Lam Son – Ninh Thuan pumped storage power plant and the Khe Giang waste-to-energy project in Quang Ninh.

o       The government requires a report on the Ca Mau 3 project before deciding on investment.

o       POW has partnered with Vingroup and expects that revenue from EV charging stations will make a significant contribution to its overall revenue structure in the coming years.

AGM documents 2025: [here]

AGM resolution 2025: [here]