PPC released Q2 2022 results with NPAT plunging 38% YoY to VND75bn (USD3.3mn). Q2 2022 gross profit was VND120bn (USD5.2mn) vs a loss of VND76bn in Q2 2021 thanks to strong competitive generation market (CGM) prices and a favorable price spread of VND442/kwh (+109% YoY), which outweighed a 4% reduction in sales volume and higher coal prices. However, a lack of dividend income from PPC’s associates QTP and HND dampened the company’s NPAT-MI in Q2 2022.

H1 2022 reported NPAT was VND155bn (USD6.7mn; -40% YoY), which is in line with our expectation as it completes 48% of our 2022F full-year forecast. We expect PPC to book dividend income in future quarters.