AsemconnectVietnam - Vinh Son - Song Hinh Hydropower Joint Stock Company (code VSH) has just announced the documents for the 2025 Annual General Meeting of Shareholders held on March 21 with many important contents.

In 2025, VSH aims to produce more than 1.94 billion kWh of electricity at Vinh Son - Song Hinh and Thuong Kon Tum factories, with nearly 1.92 billion kWh of commercial electricity output, all increasing by 13% compared to 2024. Accordingly, the revenue target is about VND1,865.2 billion, only slightly increasing compared to 2024, but after-tax profit increases by 21%, to VND541.16 billion.
Based on the hydrological situation at the end of 2024 and the forecast of water flow in 2025, VSH forecasts that the production and business situation in 2025 will face many difficulties. The El Nino phenomenon lasting from the end of 2024 will continue to affect the hydrological situation in the Central and Central Highlands regions in 2025.
In addition, the electricity market operation policy in 2025 will continue to be more unfavorable than in previous years, the alpha rate will increase to 98% (payment according to contract price) and the determination of Qc through the planned output of the monthly operation method; this will greatly affect the revenue rate of participating in the electricity market of the plants.
The Board of Directors said that the Company will continue to negotiate with EVN on adjusting the electricity selling price according to the contract of Thuong Kon Tum Plant to suit the current situation.
Regarding the power source development investment plan, the project to raise the normal water level of Lake B - Vinh Son Hydropower Plant is expected to be temporarily suspended for monitoring due to the hydrological situation in recent years, the water flow to Lake B to pass the spillway is very low, greatly affecting the effectiveness of the investment in upgrading the project.
The Vinh Son Hydropower Expansion Project and the Song Hinh Hydropower Expansion Project are not included in the Plan to implement the Power Plan VIII signed by the Prime Minister in April 2024. The Ministry of Industry and Trade has also submitted to the Government a proposal to promulgate, supplement and update the Plan to implement the National Power Development Plan for the period 2021 - 2030, with a vision to 2050, accordingly, the names of the above two expansion projects are not included because according to the assessment of the Ministry of Industry and Trade, the expansion projects are currently difficult to bring about efficiency.
With this difficult situation, continuing to invest in the above projects is not feasible. Therefore, in 2025, VSH will temporarily suspend the implementation of upgrading and expansion projects. When conditions permit, VSH will re-implement. In the coming time, the company will consider researching renewable energy electricity on Song Hinh Lake, Vinh Son Lake A and B according to the State's incentive policies.
Notably, VSH will also submit to the congress the addition of business lines such as: construction of electrical works, installation of electrical systems, installation of other construction systems, and construction of road works.
Regarding the dividend payment plan, the Company expects the minimum dividend to be 20% of the charter capital in cash.
N.Nga
Source: VITIC/Tinnhanhchungkhoan