Vietnam Electricity reports losses of $635 mln

By Anh Minh   November 28, 2022 | 07:34 pm PT
Vietnam Electricity reports losses of $635 mln
A worker repairs electricity cables in Ho Chi Minh City, September 23, 2019. Photo by VnExpress/Thanh Nguyen
Vietnam Electricity (EVN) posted losses of VND15.758 trillion ($635.4 million) between January and October, with higher fuel prices a major contributing factor.

EVN said fluctuations in the world prices of coal, oil and gas since the beginning of this year have caused its production costs and purchase prices of electricity it bought from other power plants to soar.

According to its financial statements, EVN racked up after-tax losses of more than VND16.586 trillion ($668.79 million) in the first half of this year.

With world prices of fuels in 2023 predicted to remain high it would be hard for EVN to achieve good business results next year, the utility said. It estimates losses of VND31.36 trillion in 2022.

According to a report by the Ministry of Industry and Trade, prices of input materials for electricity production have skyrocketed since the beginning of the year, with that of imported coal more than doubling to $304.8 per ton, so retail prices of electricity may increase in the near future.

The average retail price of electricity currently stands at VND1,864.44 (7.5 cents) per kWh, excluding value-added tax. In June, EVN said the price this year should increase to VND1,915.59 (7.7 cents) per kWh.

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