NT2 Power Corporation Financial Overview 2024

Study Notes

SSI Research Upgrade

SSI Research upgraded stock recommendation for NT2 from neutral to buy.
12-month target price set at 24,700 VND per share, indicating a 26% price increase potential.

NT2 Financial Overview (First Half of 2024)

In H1 2024, NT2 Power Corporation reported revenues of 2,400 billion VND, a nearly 44% decline YoY.
The company incurred a net loss of 36 billion VND, a stark contrast to net profits of 379 billion VND in H1 2023.
Decline attributed to a 17% drop in market electricity prices (FMP).

Production Performance

High electricity dispatch by EVN helped NT2 achieve a Q2 2024 production volume of nearly 800 million kWh.
Improved operational efficiency in Q2 compensated for a 158 billion VND loss in Q1 2024.

Revenue and Profit Estimates

SSI estimates NT2's total revenue for 2024 to reach 5,991 billion VND, with a projected net profit of 20 billion VND, marking declines of over 6% and 96% respectively compared to 2023.
Increased production estimates in 2024 are based on higher-than-expected dispatch figures in June and early July.

Future Gas Pricing

Gas prices have risen at EVN Genco 3, currently at 10 USD/MMBTU, compared to NT2’s 9.50 USD/MMBTU.
Higher gas prices suggest NT2 may have preferential electricity dispatch in H2 2024.

Currency Loss Compensation

SSI included an estimated compensation for currency exchange losses of 155 billion VND in the 2024 revenue projection, though realization depends on EVN's financial status.
Anticipation for this compensation to occur in 2025.

Projected Financial Performance

Expectations for NT2 to break even in 2024, with anticipated improved profits in H2 compared to H1, despite overall profit declines due to lower dispatch values.
For 2025, projected revenues are estimated at 8,097 billion VND, with a net profit of 399 billion VND, signifying increases of 35% and over 17 times from 2024 estimates.

Impacts of Phu My 2.2 Power Plant

The anticipated commissioning of Phu My 2.2 gas plant (715 MW) in 2025 expected to mitigate natural gas shortages in Southern Vietnam.
A long-term gas supply agreement with PV GAS until 2036 is expected to enhance input supply for NT2 starting in 2025.

Conclusion

Based on these projections and developments, SSI Research recommends buying NT2 stock due to anticipated recovery and growth potential.

Description

Explore the financial insights and stock recommendations regarding NT2 Power Corporation for the first half of 2024. This quiz covers revenue performance, production efficiency, and projected market trends for NT2, focusing on significant changes compared to previous years.

NT2 Power Corporation Financial Overview 2024

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Questions and Answers

What is the expected performance of NT2 in 2024 according to SSI Research?

What is the estimated net profit for NT2 in 2025?

What major factor is expected to improve NT2's input supply in 2025?

What is the target price for NT2 shares in the next 12 months?

What was the reason for the reduction in NT2's profits compared to the previous year?

What recommendation did SSI Research give for NT2's stock?

What was the target price for NT2 stock set by SSI Research for the next 12 months?

What was the reported net loss for NT2 in the first half of 2024?

By how much did the market electricity price (FMP) drop in the first half of 2024 compared to the previous year?

What was the estimated net profit for NT2 in 2024 according to SSI Research?

What was the total revenue for NT2 in the first half of 2024?

What was the price of gas for NT2 in June 2024?

What assumption did SSI Research make regarding the payment of the exchange rate loss compensation?

What amount is estimated as extraordinary profit for NT2 in 2025?