Hanoi (VNA) – Representatives
of the PetroVietnam Securities Incorporated (PSI) and the Vinacomin Power
Holding Corporation told an investors’ conference on July 26 that they were
encouraged by investors’ interest shown in purchasing Vinacomin shares.
Ngo Tri Thinh, general director of Vinacomin Power
Holding Corporation – a subsidiary of the Vietnam National Coal-Mineral
Industries Holding Corporation Ltd (Vinacomin), told more than 100 potential
investors that his company is well aware of the pressure and competitive nature
of the energy sector, and it strives to meet investor expectations with more
effective management and operation systems.
The Vinacomin Power Holding Corporation became equitised in
January 2016 with 6.8 trillion VND (302.4 million USD) in charter capital,
under the stock code DTK on the Hanoi Stock Exchange’s (HNX) Unlisted Public
Company Market (UPCoM).
The company now has 680 million common stocks trading on the UPCoM
at 14,000 VND (0.6 USD) per share, same as its preferential price in 2016.
According to its 2016 financial report, the company finished with 354 billion VND
(15.74 million USD) in post-tax income, down by 29.36 percent from its 2015
result.
The Vinacomin Power Holding Corporation is operating seven
thermo-electric plants across the country, generating more than nine billion
kilowatts per year. The group is considered the third largest power supplier in
the growing Vietnamese power market, following Electricity of Vietnam and the
PetroVietnam.
The need for thermo-electricity in the country will reach 245
billion kilowatts in 2020 and a staggering 559 billion kilowatt in 2030.
Since the company’s plants are situated in close proximity to coal
mines, it has managed to cut down on transportation costs and facilitate the
coal sector’s value chain.
PSI representative explained at the conference that the
aforementioned loss could be attributed to the large capital flow into
Vinacomin’s power projects. At present, the company’s plants have yet to
generate enough revenue to break even, so it will take a few more years before
the amount of outstanding debts decline and income goes up.
However, PSI also warned that Vinacomin’s DTK stock has a low
liquidity rate, and could pose risks for investors. As of now, up to 99.68 percent
of the company’s shares is owned by the State-owned enterprise Vinacomin, with
low value of free float shares.
Vinacomin’s Deputy General Director Nguyen Van Bien said at the
conference that in accordance with the Prime Minister’s orientation for the
2016-20 period, Vinacomin plans to restructure all its subsidiaries. In
particular, the group will divest from its Vinacomin Power Holding Corporation
in two phases. The first phase will see the State ownership reducing from 99.68
percent to 65 percent and the second phase shifting from 65 percent to 51 percent
by the end of 2018.
The group will also divest down to 36 percent from the Vinacomin
Housing and Infrastructure Company Limited, 51 percent at the Vinacomin-Việt
Bắc Geology Joint Stock Company, and 65 percent at the Vinacomin Minerals
Holding Corporation.
The group hopes to mobilise as many investments at home and abroad
as possible, and will give priority to potential investors with strong
financial ability, experience in the power sector or those willing to commit to
a long-term deal with the company, Bien said.
The group plans to announce further plans in the third quarter of
2017 to help hesitant investors make their decisions by the end of the
year.-VNA