Gia Lai Electricity Joint Stock Company (GEC, Company, code: GEG) has just been officially put into commercial...
Gia Lai Electricity Joint Stock Company (GEC, Company, code: GEG) has just been officially put into commercial operation (COD) the first 3 Wind Power Plants with a total capacity of 130 MW.
The first 3 Wind Power Plants with a total capacity of 130 MW are put into commercial operation by GEG as planned to enjoy the preferential price FiT1 applied to wind power projects onshore 8.5 cents/kWh and offshore 9.8 cents/kWh for 20 years.
GEC said that these 3 projects are expected to contribute about 416 million kWh of electricity output each year - supplying nearly 64,000 households, 889 billion VND in revenue, accounting for 42% of total revenue, 2.2 times more. compared with Hydropower and equivalent Solar Power of the Company.
Reduce CO2 emissions annually by about 360,057 tons, bringing the total reduction in emissions of the entire GEC Renewable Energy Portfolio in operation to nearly 800,000 tons/year.
The timely COD 3 Wind Project is an important milestone in the strategy to realize diversified types of Renewable Energy with a total capacity of 1,700+ MWp by 2025.
The Onshore Wind Power Plant, namely Ia Bang 1 (IAB1) 50 MW enjoys the electricity selling price of 8.5 cents/kWh ~ 1,955 VND/kWh within 20 years.
IAB1 is distributed on a total area of 477 hectares invested by Ia Bang Wind Power Joint Stock Company - a subsidiary of GEC.
The project has a total investment of 1,955 billion VND with 12 Wind Turbines - 4.2 MW/turbine capacity; same O&M service for 10 years provided by Vestas - one of the world's famous Turbine suppliers.
The wind turbines are designed in accordance with the terrain of the Area to ensure the optimal power output for the whole Project.
With an average wind speed of 6.7 m/s, the IAB1 Plant is expected to contribute 163 million kWh of electricity annually to the national grid, serving nearly 25,000 households, with revenue equivalent to 319 billion VND and contributing to reducing emissions of 141,411 tons of CO2.
After completing the legal procedures, technical design, detailed plan as well as carrying out Environmental and Social (E&S) assessments in accordance with Vietnamese regulations and international IFC standards, The project was completed within 1 year.
EPC contractor is Power Construction Joint Stock Company 1 (PC1) - The leading power construction and installation unit and also the Investor of a series of Wind Power and Hydropower Projects in Vietnam.
Vietcombank accompanies IAB1 as a credit sponsor with a reasonable interest rate for 14 years.
The 50 MW near-shore Wind Power Plant Tan Phu Dong 2 (TPD2) will enjoy the electricity price of 9.8 cents/kWh ~ VND 2,254/kWh within 20 years.
This is the first and only Wind Power Project of Tien Giang Province, with wind power up to 6.7 m/s - suitable for offshore wind power development.
Due to construction at the deepwater level and far from shore, Tan Phu Dong 2 nearshore Wind Power Plant is planned from 2018 from wind measurement, survey, pre-feasibility study, selection of location to E&S assessment. according to international standards IFC.
Wind Power Plant near the shore of Tan Phu Dong 2 has a total investment of 2,242 billion VND, financed by Vietcombank. It is expected that annually, the project will provide 161 million kWh of electricity for about 25,000 households: a revenue contribution of approximately 363 billion VND, and an emission reduction of nearly 140,000 tons of CO2. Vestas was also selected to provide 12 Turbines and O&M services for the Project within 10 years. Just over 10 months of construction by General Contractor PC1, TPD2 has completed energizing the Substation, Preventing Output, testing, passing the inspection rounds of EVN, and officially COD. The nearshore wind power plant VPL 1 (VPL1) also enjoys a selling price of 9.8 cents/kWh for 20 years. The project has been conducting wind measurements since May 2019, pre-feasibility study, site selection, and installation in Binh Dai Sea Area, Ben Tre, where the wind speed is 6.8 m/s. VPL1 is expected to contribute 92 million kWh of electricity output to 14,097 households, generate about VND 207 billion in revenue, and reduce emissions of nearly 80,000 tons of CO2 annually.
GEC has just announced the consolidated financial statements for the third quarter of 2021, with GEG's consolidated pre-tax profit and after-tax profit in the first 9 months of 2021 reaching 230 billion VND and 211 billion VND, up 9% and 3 years respectively over the same period.
Net profit margin continued to remain at 22%, equivalent to the industry average. The Company's advantage in recent years is its EBIT margin (earnings before interest and tax) and EBITDA margin (earnings before interest, tax, and depreciation) with 51% and 80%, respectively, higher than 34 % and 46% of industry averages - indicating GEC's long-term growth prospects.
During the 5-year period from 2016-2020, GPM, EBIT Margin, and EBITDA Margin all maintained attractive figures above 51%, 44%, and 62%.
As of September 30, 2021, GEG's total assets reached 12,560 billion VND, 1.6 times higher than the beginning of the year due to strong growth in cash and cash equivalents.
Other current assets and long-term work-in-progress, respectively, increased by 252%, 772%, and 910%, mainly due to proceeds from the capital increase, equipment, and expenses for the urgent completion of Wind Power Projects.
Total debt by the end of the third quarter of 2021 is at 6,504 billion VND, an increase of 70% compared to the beginning of 2021 to meet the capital needs in the sprint period of Wind projects to enjoy the FiT1 price before the deadline in November 2021 as well as continuing GEC's renewable energy portfolio expansion strategy.
However, the loan structure is favorable when focusing on 93% of long-term loans while short-term loans have recorded a decrease of 24% compared to the beginning of the year. The interest coverage ratio remained at 1.9 times to ensure the interest payment of the company.
On the stock market, the price of GEG shares of Gia Lai Dien ended the session on November 2 at 20,400 VND/share.
Via Investment Newspaper