“This is the Corporation’s responsibility to shareholders. In previous years, we gained profits but couldn’t pay dividends due to exchange rate losses”.
Mr. Le Van Danh, the General Director shared his opinions when talking about the dividend payment to shareholders at the Annual General Meeting of Shareholders of the Power Generation Joint Stock Corporation 3 (EVNGENCO 3, HOSE: PGV) organized in the morning of June 24, 2020.
Mr. Le Van Danh, the General Director presents at the General Meeting
Dividend means the responsibility to shareholders
PGV has entered 2020 with many challenges. Due to complex changes of the Covid-19 epidemic, the load demand is low. Vietnam's economic growth is weakened and the exchange rate is also changed quickly. Mr. Danh said that “We are extremely nervous to monitor changes of the exchange rate. We have done everything and made use of all things, but it may turn to zero if the exchange rate increases to just a few tens of VND”.
The hydrological situation is also “against” PGV. Mr. Danh shared that fierce droughts occurred in the early of 2020, factories in the Central Highlands have not yet had sufficient water sources.
Regarding the business plan in 2020, PGV targets the Parent Company's net revenue is 40,442 billion VND, decreased by 2.3% compared to the previous year; however, the total profit before tax increased by 71%, expected to reach 1,522 billion VND. In the first 5 months of this year, PGV achieved the power output of 13,351 million kWh, completed nearly 41% of the year plan. Accordingly, the 5-month revenue reached 17,836 billion VND, slightly higher than the same period last year.
Notably, PGV expects to pay 5% of the dividend in the year of 2020. Mr. Danh said that “This is the Corporation’s responsibility to shareholders. In previous years, we gained profits but couldn’t pay dividends due to exchange rate losses”.
Sharing more about the dividend payment, Mr. Dinh Quoc Lam, Chairman of PGV said that PGV had submitted the plan to EVN as the controlling shareholder. “At the end of 2020, EVN will be the final decision maker in payment by stocks or cash when considering the financial resources of relevant parties”. Mr. Lam also shared that PGV's Steering Committee wants to make the dividend payment by stocks.
Mr. Danh said the Corporation was also preparing procedures to transfer stocks from UPCoM to be listed on HOSE: “It is expected that we will be eligible to list in 2021.”
Long Son Power Complex Project
The Long Son Power Complex Project has been studied by PGV for the past 4 years. When sharing about the Project’s opportunity, the General Director, Mr. Le Van Danh said “The domestic gas source is running out while the load demand is increasing. We need to study new types of fuels, using imported LNG”.
Many partners have cooperated to implement this Project, these 4 domestic companies including EVNGENCO 3, PECC2, PACIFIC, TTC and 2 foreign units including Mitsubishi Corporation (MC, Japan) and General Electric (GE, USA). These 6 partners have full experience from surveys, planning, implementation of EPC contracts, gas supply to operation and maintenance.
Up to now, Phase 1 of the Long Son Power Complex Project has been officially approved with a capacity of 1,200-1,500 MW, supplemented to the Power Development Plan VII and the operational schedule for the period of 2025-2026. Phase 2 and 3 of the Long Son Power Complex Project will be submitted for approval in the Power Development Plan VIII. General Director of PGV said that “We are promptly establishing a project company in the 3rd Quarter and working with relevant agencies to implement the investment”.
Regarding the ownership structure at the project company, Mr. Dinh Quoc Lam, the Chairman also shared that Vietnamese enterprises would hold the dominant ownership. The specific ownership structure would be provided after parties have determined their financial contribution.
Currently, Ba Ria - Vung Tau Province signed a MOU to allocate an area for the project performance. “This project will only compensate for several dozen households”. The whole land-related procedure has have promoted by PGV in parallel with the project investment procedures.