Most thermal power companies have reported lower earnings in the third quarter of 2018 as increasing rainfall reduces demand for heat energy. Cam Pha Thermal JSC (UPCoM: NCP) recorded losses of VND102 billion (US$4.4 million) in the third quarter after having suffered VND201.3 billion in the second quarter. The losses made over the past two quarters have resulted in accumulated losses of VND303 billion for the firm during the nine-month period. According to Cam Pha Thermal JSC, the rainfall increased in the third quarter, leading to less demand for heat energy while the company had to suspend its plant operations for maintenance. The company also had to pay for fixed costs such as amortisation of its fixed assets, lending interest, power plant maintenance and difference in exchange rates. Those two factors made the firm’s revenue fall 10.2 per cent year on year while its financial and production costs rose by 65 per cent and 5 per cent respectively over one year. Hai Phong Thermal Power JSC (UPCoM: HND) also encountered the same problems as it recorded a 10 per cent decline in third-quarter revenue, amounting to VND1.76 trillion. In the quarter, the company posted a loss of VND148 billion while making a profit of VND106 billion in the same time of last year. After nine months, the company saw its profit drop by about 50 per cent year on year to VND179.8 billion. Hai Phong Thermal Power JSC explained that as demand for thermal power was low in the third… [Read full story]
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