PV Power marks 10th birthday with planned sale, IPO

Panorama of Ca Mau 1 & 2 power plants - Photo: Lai Lam Tung

The company, Vietnam’s second-largest power provider, expects the sale to strategic investors and an initial public offering planned (IPO) for August could fetch about US$600 million.

The company has met with potential investors, including Singapore’s Sembcorp Industries Ltd and GIC Pte, as well as Vietnamese investment funds Indochina Capital Corp., VinaCapital Investment Management Ltd and Dragon Capital, according to Bloomberg. BNP Paribas SA and Standard Chartered Plc are also representing undisclosed investors, and the company says investment funds and power producers from Japan, the Republic of Korea, the US and the Middle East have also expressed interest.

PV Power is a wholly owned subsidiary of Vietnam National Oil and Gas Group, established in May 2007 under Decision 1468/QD-DKVN dated May 17, 2007 by PVN in order to produce and supply power to drive the country’s rapid socio-economic growth. Its mandate included the development of power sources, ensuring national power security, and promoting the process of industrialization and modernization in the context of international economic integration.

Its executives take pride in the company’s success given the numerous hurdles it faced in recent years, such as the public debt crisis in Europe, political instability and religious conflicts that resulted in a sharp decline in crude oil prices, together with difficulties in the domestic economy.

The corporation started out with chartered capital of VND7.6 trillion and seven member units. This grew to more than VND13.078 trillion with 10 member units and 14 associated companies in 2012, and reached more than VND21.774 trillion with 10 member units and 11 associated companies by March 2017.

In 2007, the Ca Mau 1 Power Plant generated capacity of 750MW. By 2012, the corporation’s total capacity reached more than 2,709MW and five power plants were put into operation during the 2008-2012 period, including Ca Mau 2, Nhon Trach 1 and Nhon Trach 2 gas thermal power plants, Nam Cat Hydropower Plant and Phu Quy Wind Power Plant.

The Hua Na Hydropower Plant started generating electricity in September 2013, while the Dakdrinh Hydropower Plant was connected to the national grid in 2014. PV Power received the Vung Ang 1 Thermal Power Plant in 2015, contributing to increasing total capacity to more than 4,214MW. However, PV Power handed over the Phu Quy Wind Power Plant to Vietnam Electricity for management and operation in July 2015. Therefore, total power generation capacity of PV Power currently stands at more than 4,208MW.

PV Power’s commercial electricity output has also increased at a growth rate of more than 9-10 percent per annum. The corporation provided more than 54 billion kWh of electricity during the 2007-2012 period and over 80 billion kWh of electricity from 2013 to March 31, 2017.

The company’s maintenance and repair services have also grown, as has its experience in management and operation of PV Power’s staff, engineers and other workers.

The corporation is currently focused on the development of related service sectors, including supply of coal to power plants. PV Power has also successfully completed its business mission, contributing to greater economic efficiency and increasing profits. The corporation’s revenues reached nearly VND70 trillion during the 2007-2012 period and more than VND109 trillion from 2013 to March 31, 2017. In addition, its state budget contributions reached more than VND3.1 trillion during the 2007-2012 period and over VND5.5 trillion from 2013 to the end of the first quarter of this year.

Its achievements have garnered the highest honors bestowed by the party, state and government, including the Top 100 Vietnam Gold Star Award, Golden Cup for Vietnam Construction Quality, Prime Minister’s Certificate of Merit for outstanding achievements in power production and supply. It was also awarded the third-class Labor Medal and the “Enterprise for Workers” Award by the Vietnam General Confederation of Labor in collaboration with the Ministry of Labor, Invalids and Social Affairs and the Vietnam Chamber of Commerce and Industry.

PV Power also focuses on restructuring with many effective solutions and carries out the equitization in accordance with the schedule required by the government, the Ministry of Industry and Trade and the PVN.

After 10 years of establishment and development, PV Power has the right to be proud of contributions to the country’s socio-economic development.