Rains leave hydropower sector awash in profits, thermal plants struggle

Hydropower company Song Ba reported a nearly five-fold increase in post-tax profits in the second quarter to VND46.07 billion ($1.97 million) as huge water inflows helped increase power output by 112 percent year-on-year.

Southern Hydropower and Vinh Son – Song Hinh Hydropower reported a 90 percent rise in profits, while several others said earnings were up by more than 50 percent.

Hydropower production in May, when the rainy season began, reached the same level as in October 2020 when production peaked, according to a report by Vietcombank Securities.

Hoa Binh and Son La hydropower plants had to discharge water in early June due to the unusually heavy rains.

Meanwhile, thermal power plants have been struggling.

PV Power saw profit drop by nearly 33 percent to VND580 billion.

The surge in the prices of coal and gas were responsible, it said, adding that output at its Vung Ang 1 and other plants plunged by double digits.

Power Generation 3 belonging to national utility Vietnam Electricity reported a fall of nearly 45 percent to VND420 billion.

Global coal prices had doubled over the previous 12 months to $393 per ton.

In the first six months, electricity production increased by nearly 4 percent year-on-year to over 133 billion kilowatt-hours.