PPC continued to post underwhelming results in Q3 2021 with a net loss of VND35bn (USD1.5mn) vs NPAT of VND90bn (USD4mn) in Q3 2020. Losses in Q3 2021 were mainly driven by a 35% YoY slump in sales volume that was due a partial technical shutdown of the Pha Lai 2 power plant since April 2021 and a 37% YoY decline in contracted volume. Unlike in Q2 2021, there was a nonmaterial contribution from dividend income in Q3 2021, which led to a net loss for the quarter. Overall, PPC’s 9M 2021 NPAT reached VND223bn (USD10mn), declining 56% YoY and completing 43% of our 2021F full-year forecast. Per PPC, it is unlikely that the technical issues at Pha Lai 2 will be resolved in 2021, which implies material downside risk to our current earnings forecast for 2021F as well as 2022F, pending for a fuller review.

Powered by Froala Editor