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| Ia Pet Đắk Đoa 1 Wind Power Plant. Lower business outcomes of renewable vitality businesses stem from many causes, together with giant quantities of bond money owed. Photo iapetwind.com |
HÀ NỘI — Renewable vitality corporations have recorded declining earnings outcomes, partly attributable to burdens on company bond cost.
Xuân Thiện Group is without doubt one of the main traders within the vitality sector, with two clusters of solar energy initiatives in Ninh Thuận and Đắk Lắk. In addition to solar energy, this group additionally invests in hydropower, with 20 initiatives with a complete capability of 400MW developed to this point.
According to Nguyễn Văn Thiện, Chairman of Xuân Thiện Group, the group has greater than 80 member corporations within the nation and overseas, with a complete constitution capital of greater than VNĐ100 trillion, specialising in investing in vitality manufacturing, high-tech agriculture, building supplies, banking and finance and quite a few different service industries. Currently, the group’s member corporations personal many energy crops and produce building supplies, with annual income of VNĐ20 trillion.
In Đắk Lắk, Xuân Thiện Group invested in Xuân Thiện Ea Súp solar energy plant cluster, with a complete funding of greater than VNĐ50 trillion, design capability of two,000 MWac (equal to 2,800 MWp). Phase 1 of this undertaking consists of 4 factories: Ea Súp 1, Ea Súp 2, Ea Súp 3 and Ea Súp 5, with a complete funding capital of VNĐ16.5 trillion, accomplished in 2020. Phase 2 consists of 10 factories. The factories are underneath building, with complete funding capital of VNĐ33.5 trillion.
This undertaking cluster is constructed on a complete space of about 4,180 hectares of land and is taken into account one of many solar energy initiatives with the most important capability in Southeast Asia.
Recently, quite a few corporations underneath Xuân Thiện Group have introduced monetary data based on rules on personal providing and buying and selling of company bonds. In explicit, Ea Súp 1 Joint Stock Company confirmed a lower in earnings and a rise within the debt to fairness ratio.
In 2021, Ea Súp 1 revenue after tax reached VNĐ42.6 billion. In 2022, it solely recorded a revenue of 10.6 billion VNĐ, down 75.1 per cent in comparison with the earlier 12 months. In the primary half of 2023, the Company reported revenue after tax of VNĐ15.5 billion, down 27.9 per cent over the identical interval final 12 months.
Ea Súp 1’s 2023 semi-annual monetary report confirmed that the corporate’s fairness on the finish of June 2023 was VNĐ823.8 billion, a slight improve in comparison with VNĐ819.2 billion in the identical interval final 12 months. However, the debt to fairness ratio additionally elevated from 1.91 instances to 2.25 instances, equivalent to liabilities of greater than VNĐ1.85 trillion.
Ea Súp 3 Joint Stock Company reported a revenue of VNĐ31.4 billion in 2021, however in 2022 it misplaced almost VNĐ3 billion. In the primary half of this 12 months, it misplaced VNĐ7.5 billion. As of June 30, 2023, Ea Súp 3’s fairness reached VNĐ5.55 trillion, the debt to fairness ratio was 0.35 instances, equal to a legal responsibility of greater than VNĐ1.9 trillion.
Similarly, Ea Súp 5 Joint Stock Company recorded an after-tax lack of VNĐ24.8 trillion within the first half of this 12 months, whereas in the identical interval final 12 months, it recorded an after-tax revenue of VNĐ33.5 billion. As of June 30, 2023, the corporate’s fairness reached VNĐ1.07 trillion, the debt to fairness ratio was 3.14 instances, equivalent to the quantity of debt payable of about VNĐ3.35 trillion.
In 2021, the corporate’s revenue after tax was VNĐ551.2 million, a pointy lower in comparison with the determine of VNĐ33.9 billion recorded in 2020. As of December 31, 2021, the corporate had VNĐ3.4 billion in liabilities, the scale of fairness was VNĐ1.09 trillion, equal to a debt-to-equity ratio of three.15 instances, a pointy improve in comparison with 2.19 instances on the finish of 2020.
Like many different businesses, Xuân Thiện Group has mobilised giant capital by the bond channel to spend money on solar energy initiatives.
According to the Hà Nội Stock Exchange (HNX), in August 2020, Ea Súp 1 issued 11 plenty of bonds with phrases starting from 2 years to 12 years, with a complete worth of VNĐ1.63 trillion.
Also in August 2020, Ea Súp 3 issued 11 plenty of bonds with phrases starting from 2 years to 12 years, with a complete worth of VNĐ1.63 trillion.
Ea Súp 5 issued 11 plenty of bonds in June 2020, with a complete worth of VNĐ2.39 trillion.
Ia Pet Đắk Đoa Wind Power Plant Number One Joint Stock Company (Ia Pet Đắk Đoa WPP No1) and Ia Pet Đắk Đoa Wind Power Number Two Joint Stock Company (Ia Pet Đắk Đoa WPP No2), respectively, are the traders of the Ia Pet Đắk Đoa 1 Wind Power Plant and Ia Pet Đắk Đoa 2 Wind Power Plant. These are two initiatives whose planning was accredited in June 2020 and are the 2 largest wind energy crops inbuilt Gia Lai Province.
According to the latest monetary state of affairs announcement of Ia Pet Đắk Đoa WPP No1, the corporate’s fairness as of June 30, 2023 reached VNĐ518.3 billion, down 18.4 per cent over the identical interval final 12 months. Liabilities had been estimated at VNĐ3.3 trillion, 6.45 instances increased than fairness. Outstanding bond debt was VNĐ416.7 billion, down 10 per cent over the identical interval final 12 months.
In the primary half of 2023, the corporate reported a lack of VNĐ71 billion, a pointy lower in comparison with the lack of VNĐ160.4 billion recorded in the identical interval final 12 months. However, this consequence was down sharply in comparison with the revenue of VNĐ7 billion in 2021.
The state of affairs at Ia Pet Đắk Đoa WPP No2 is analogous. The firm reported a lack of VNĐ75 billion within the first half of this 12 months, a lack of VNĐ154.4 billion in the identical interval final 12 months. At the top of the second quarter of 2023, the corporate’s fairness was VNĐ466 billion, down 20.7 per cent over the identical interval final 12 months. The firm had VNĐ3.26 trillion in liabilities, 6.99 instances greater than fairness.
In the primary half of this 12 months, excellent bond debt of Ia Pet Đắk Đoa WPP No2 decreased from VNĐ448 billion to VNĐ403.2 billion. However, attributable to losses and decreased fairness, the corporate’s excellent debt to fairness ratio elevated from 0.76 instances on the finish of the second quarter of final 12 months to 0.86 instances on the finish of the second quarter of this 12 months.
According to ACBS Securities Company, the poor business outcomes of renewable vitality businesses stem from many causes, together with businesses utilizing monetary leverage by mobilising giant quantities of capital by bond issuance. Many businesses have a debt-to-equity ratio of greater than 4 instances. In the context of excessive rates of interest, businesses have to make use of many assets to pay bond curiosity. — VNS
