NT2 released its Q4 2022 results with revenue of VND1.9tn (USD81.4mn; +18% YoY), reported NPAT-MI of VND5bn (USD0.2mn; -96% YoY) and adjusted NPAT-MI of VND55bn (USD2.3mn; -54% YoY). In our view, the weak NPAT was due to 13% YoY increase in maintenance expenses and a large amount of compensation for non-mobilized contracted volume in Q4 2021.

NT2’s 2022 reported NPAT-MI was VND729bn (USD30.8mn; +37% YoY), completing 83% of our full-year forecast. Meanwhile, the company’s adjusted NPAT was VND634bn (USD27mn; +19% YoY), completing 90% of our full-year forecast. The lower-than-expected adjusted NPAT was mainly due to lower-than-expected volume following weak national power consumption in Q4 2022 despite high competitive generation market prices.