On June 25, 2023, Gia Lai Electricity Joint Stock Company (GEG - stock code GEC) held its Annual General Meeting of Shareholders (AGM) for the fiscal year 2023 in Ho Chi Minh City, setting a target of pre-tax profit of VND 335 billion and a dividend payout of 5%.
The AGM voted on 4 reports and 7 proposals to approve 5 financial issues and 2 corporate governance issues.
The GEG AGM also approved the plan to pay a 5% dividend in shares, with implementation scheduled for 2024. This is considered a reasonable dividend level given the current state of the industry and the economy, aligning with GEC’s strategy to continue expanding its research and development of renewable energy (RE) types through 2030.
The number of shares expected to be issued for the dividend payout is 17,062,470 shares, based on the number of common shares currently in circulation. After issuing shares for the dividend payout, GEC's charter capital in 2024 is projected to reach VND 4,225 billion.
Amid the recent challenges facing the domestic and international macroeconomy, particularly the energy sector, Gia Lai Electricity's AGM also approved a consolidated total revenue target for 2024 of VND 3,120 billion and a pre-tax profit target of VND 335 billion.
According to the GEG Board of Directors, GEC's business plan is based on the assumption that price negotiation efforts at transitional power plants will be completed in 2024, with the results recognized by the competent state authorities and full legal basis to record all revenues since operation (including the unreleased revenue in 2023 from the Tan Phu Dong 1 Wind Power Plant - 100MW).
The AGM also approved the payment of a 6% dividend on preferred convertible shares for DEG. It will continue to select one of the Big 4 auditing firms to audit the 2024 financial statements to ensure financial data standards.
The AGM approved a remuneration of VND 50 million per month for the Chairman of the Board of Directors, VND 30 million per month for Board members, and other operating expenses of the Board of Directors.
In 2024, the company aims to focus on optimizing the operation of power plants in its portfolio to ensure revenue targets; developing technical services, testing, and operation management for external partners to diversify revenue sources. It will continue researching and developing renewable energy types in various localities, implementing phased deployments, and applying suitable technologies to ensure investment efficiency.
Previously, on April 18, 2024, GEC marked an important milestone by becoming the first corporate issuer in Vietnam to own a Green Finance Framework certified by the Climate Bonds Initiative (CBI). This certification was granted after a rigorous and comprehensive validation process by FiinRatings.
GEC's certified Green Finance Framework complies with the Climate Bond Standards, allowing the company to issue green bonds to finance renewable energy projects. GEC's renewable energy projects contribute significantly to the development goals of renewable energy projects and the reduction of greenhouse gas emissions in Vietnam.
Via Securities News