- POW released its Q3 2023 results with revenue of VND5.7tn (-6% YoY) and reported NPAT-MI of VND83bn (+24% YoY). The YoY decline in Q3 2023 revenue can be attributed to (1) 5% YoY lower sales volume with weaker YoY performance of hydropower, Nhon Trach 1 and NT2 outweighing higher YoY sales volume from the Ca Mau 1 & 2 and Vung Ang plants and (2) lower YoY competitive generation market (CGM) prices in August and September partially due to unexpectedly high rain fall in these months. We note that the sector’s average CGM prices plunged 48% YoY and 44% YoY in August and September 2023, respectively. Meanwhile, the YoY increase in Q3 2023 reported NPAT-MI was driven by 45% YoY higher financial income and positive minority interests due to NT2 and Dak Drinh’s net losses of VND124bn and VND40bn, respectively, in Q3 2023. We note that Hua Na also reported a 60% YoY decline in NPAT in Q3 2023 to VND105bn.

- POW’s 9M 2023 revenue and reported NPAT-MI were VND21.5tn (+5% YoY) and VND743bn 

(-39% YoY). We believe the YoY decline in 9M 2023 reported NPAT-MI was due to (1) a 45% YoY plunge in POW’s gross profits resulting from higher maintenance and operations costs for its thermal power plants (as they had to run on diesel oil (DO) in Q2 2023),  (2) low sales volume and CGM prices in August and September, (3) NT2’s major maintenance which was scheduled for most of September 2023, and (4) POW not recording one-off profit in 9M 2023 vs ~VND~600bn in 9M 2022. 

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