NT2 released its Q3 2022 results with revenue of VND2,168bn (USD94mn; +74% YoY), reported NPAT of VND199bn (USD8mn; -27% YoY) and adjusted NPAT of VND82bn (USD3mn; -70% YoY). In our view, the discrepancy between the top-line and bottom-line growth was due to a large amount of compensation for non-mobilized contracted volume in Q3 2021.

NT2’s 9M 2022 results were solid with revenue of VND6,523bn (USD267mn; +45% YoY) thanks to strong competitive generation market (CGM) prices and volume. Meanwhile, reported NPAT was VND724bn (USD30mn; +75% YoY), completing 82% of our full-year forecast. Adjusted NPAT is VND578bn (USD25mn; +40% YoY), completing 83% of our full-year forecast.

Notably, NT2’s Q3 2022 SGA expenses jumped 10x YoY to VND209bn as the company recorded provision for bad debt from EVN (which it expects to reverse in the future). On the other hand, NT2 booked ~VND340bn of compensation for previous FX losses in Q3 2022 vs our forecast of VND200bn under the revenue item.