730mln BCG Energy shares officially listed on UPCoM
BGE shares officially debut on the UPCoM market on the morning of July 31.
On July 31, the Hanoi Stock Exchange (HNX) began the trading of the BCG Energy JSC’s shares, with 730 million under the code BGE debuting on the UPCoM market at a reference price of VND15,600 ($0.61) per share. On its first trading day, the shares were allowed to fluctuate within a range of +/- 40 per cent. The 730 million BGE shares give the company a market capitalization of VND11.388 trillion ($446.59 million).
“This is an important milestone on our journey, symbolizing not only growth but also our commitment to shaping the future of the renewable energy market in Vietnam,” Mr. Ng Wee Siong Leonard, Chairman of BCG Energy, said in his address at the inauguration of the BGE shares.
“With this new milestone as a public company, we commit to maintaining the highest standards in corporate governance and transparency,” he emphasized. “Our commitment to these principles will ensure that we operate with integrity, maintain shareholder trust, and create long-term value for all stakeholders.”
BCG Energy is a key player in the energy sector of the Bamboo Capital Group (HoSE: BCG). The company was established in 2017, and its registered capital currently stands at VND7.3 trillion ($286.27 million). Its total assets have reached VND20 trillion ($784.31 million), with nearly VND10 trillion ($392.16 million) in equity.
BCG Energy has continuously posted impressive business results over recent years. In 2021, the company recorded revenue of VND760 billion ($29.8 million), which then increased by 40 per cent to VND1.064 trillion ($41.76 million) in 2022. In 2023, its net revenue again increased, by 5.8 per cent, reaching over VND1.125 trillion ($44.12 million).
In the first half of 2024, BCG Energy’s consolidated net revenue stood at VND698.8 billion ($27.42 million), a 22 per cent increase compared to the same period of 2023. Consolidated after-tax profit was VND290.7 billion ($11.4 million), a 33-fold increase compared to the first half of 2023. The significant profit increase is attributed to BCG Energy’s effective reduction of financial costs, particularly interest expenses. Additionally, its growth driver has been its solar power system, with a total capacity of 600 MW, ranking in the top 3 in Vietnam.
BCG Energy’s capital structure has also seen significant improvement and stability over the years. Its debt-to-equity ratio, which was 1.9-times at the end of 2022, has fallen to 0.99 as of June 30, 2024. Moreover, its debt-to-equity ratio has declined from 1.25 at the end of 2022 to 0.64 as of June 30, 2024.
The proportion of debt in total capital is increasingly controlled at a stable level each year, indicating that BCG Energy is maintaining safe financial leverage and minimizing risks from the macro-economy.
Its renewable energy sector has become a crucial pillar, contributing the largest proportion of revenue to the Bamboo Capital Group. Specifically, cumulative revenue in the first half of this year for the Group totaled VND2.1 trillion, a 15.7 per cent increase compared to the same period last year. BCG Energy’s renewable energy sector contributed VND698.8 billion ($27.42 million) to the Group’s revenue, accounting for 32.8 per cent.
BCG Energy currently owns a portfolio of nearly 1 GW approved under the Power Development Plan VIII (PDP8) to be implemented by 2030. Of note, a series of large-scale wind power projects, including Dong Thanh 1 (80 MW) and Dong Thanh 2 (120 MW) in the Mekong Delta’s Tra Vinh province and Khai Long 1 (100 MW) in nearby Ca Mau province, will be implemented this year and are expected to be operational by 2025. Once these projects come online, they will increase BCG Energy’s total power generation capacity by about 53 per cent.
Another notable highlight in BCG Energy’s business activities is the company’s entry into the waste-to-energy sector. On July 20, the Bamboo Capital Group and BCG Energy successfully held a breaking ground ceremony for the Tam Sinh Nghia waste-to-energy plant in Thai My commune, Cu Chi district, Ho Chi Minh City.
Phase 1 of the plant, to be built from 2024 to 2025, has total investment of VND6.4 trillion ($252 million), a waste incineration capacity of 2,000-2,600 tons a day, and a power generation capacity of 60 MW. The plant’s projected annual electricity output is up to 365 million kWh, meeting the electricity needs of about 100,000 households while reducing carbon dioxide emissions by approximately 257,000 tons a year.
Phase 2 of the project, expected to be implemented in 2026-2027, will increase the waste incineration capacity to 6,000 tons a day and the power generation capacity to 130 MW, making it the largest waste-to-energy plant in the world. Phase 3, scheduled for 2027 to 2029, aims to increase the waste incineration capacity to 8,600 tons a day and power generation capacity to 200 MW.
Along with the construction of the Tam Sinh Nghia waste-to-energy plant in Ho Chi Minh City, BCG Energy will soon implement similar waste-to-energy plant projects in the Mekong Delta’s Long An and Kien Giang provinces. These projects will help strengthen and elevate BCG Energy’s leading position in Vietnam’s renewable energy sector.
To meet the demand for developing more large-scale energy projects, in addition to raising capital from banks and financial institutions, both domestic and international partners, listing on UPCoM will facilitate BCG Energy’s fundraising for potential energy projects.
With the impressive profit jump in the first half of 2024, a safe and stable financial leverage ratio, and newly-enacted policies supporting the renewable energy sector, BGE could become a promising stock leading the energy sector in the second half of this year.
