- POW announced its Q3 2022 results with revenue increasing 13% YoY due to 1) 9% higher sales volume and 2) a higher power purchase agreement (PPA) price, which was driven by increased gas and coal prices. Meanwhile, Q3 2022 NPAT-MI plunged 86% mainly as a result of the Vung Ang plant’s poor results despite high competitive generation market (CGM) price, which outweighed the strong performance of the hydropower portfolio and NT2. According to POW, although Vung Ang plant’s volume declined, its cost of goods sold rose by VND311bn partially due to a coal shortage that boosted coal prices. We believe this is mainly recurring NPAT without one-off insuarance compensation for the technical issue at the Vung Ang plant that occurred in September 2021.  

- POW’s revenue was VND20.6tn (-2% YoY) and its reported NPAT-MI was VND1.2tn (-33% YoY) in 9M 2022, both of which completed 70% of our respective full-year forecasts. In addition, 9M 2022 adjusted NPAT-MI was VND881bn (-44% YoY), which also completed 70% of our full-year forecast. The lower NPAT YoY is mainly due to volume declining from the Ca Mau (-32% YoY) and Vung Ang (-51%) plants, as well as a downward adjustment in contracted volume at the Ca Mau plant resulting from a gas shortage. 

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