Vietnamese Power Sector Q1 Profits Surge on Higher Electricity Demand

Overview

Vietnamese power companies, particularly gas and coal-fired generators, reported strong profit growth in Q1 2026 as electricity demand rose 6.6% year-on-year. PV Power (POW) led with a 175% net profit surge, while NT2, QTP, PPC, and EVNGENCO3 (PGV) also posted significant gains. The sector benefits from higher dispatch rates and improved financial conditions.

Key Facts

• POW’s Q1 net profit reached VND 1,300 billion, up 175% year-on-year, on revenue of VND 12,327 billion (+51%).
• NT2’s Q1 net profit nearly quintupled to VND 180 billion, with revenue up 52% to VND 2,170 billion.
• PPC’s Q1 net profit rose 83% to VND 96 billion, despite flat revenue.
• QTP’s Q1 net profit increased 14% to VND 197 billion, though revenue edged lower.
• EVNGENCO3 (PGV) reported Q1 pre-tax profit of VND 913 billion on revenue of VND 10,368 billion.
• Total system electricity output reached 76 billion kWh in Q1, up 6.6% year-on-year, with coal-fired plants accounting for 52%.
• Gas-fired plants saw higher dispatch, especially in northern Vietnam, boosting margins for POW and NT2.

What Happened

According to EVN data, Vietnam’s electricity output in Q1 2026 rose 6.6% to 76 billion kWh, driven by industrial and residential demand. Coal-fired plants remained the largest source at 52%, followed by hydropower (20%), renewables (15%), and gas turbines (7%). The higher dispatch of gas and coal plants directly boosted revenues for thermal power companies.

PV Power (POW) reported consolidated Q1 net profit of VND 1,300 billion, a 175% increase, as its gas-fired plants ran at higher utilization. Subsidiary NT2 saw profit surge nearly fivefold to VND 180 billion. Among coal-fired generators, PPC’s net profit rose 83% to VND 96 billion, while QTP’s profit increased 14% to VND 197 billion. EVNGENCO3 (PGV), the largest listed generator, posted pre-tax profit of VND 913 billion. The results were disclosed in quarterly financial statements filed with the stock exchanges.

Market Context

POW shares closed at VND 13 on April 15, down 0.38% on light volume, while NT2 rose 1.95% to VND 26 on April 10. PPC was flat at VND 10. The sector has been under pressure from regulatory changes and fuel cost volatility, but Q1 results signal a cyclical recovery. Thermal power stocks on HOSE (POW, NT2, PPC) and HNX (QTP) have lagged the VN-Index year-to-date, but improving earnings could attract value-oriented investors.

Strategic Significance

The Q1 earnings surge confirms that thermal power generators are regaining pricing power and operational efficiency as electricity demand outpaces supply growth. The easing of financial burdens—lower interest costs and reduced forex losses—has widened margins. For POW and NT2, the higher dispatch of gas plants underscores their strategic role in peak-load supply, especially in northern Vietnam. This trend may persist if economic growth sustains electricity demand and new renewable capacity faces grid integration delays.

What to Watch

• Q2 2026 electricity demand data from EVN, particularly for the dry season (April-June).
• Fuel cost trends: coal and LNG import prices and their impact on margins.
• Regulatory updates on power purchase agreements (PPAs) and tariff adjustments.
• Capacity utilization rates for gas and coal plants in the coming quarters.
• Foreign ownership limits and any changes in sectoral caps for listed power companies.