EDL Gen makes 188 billion kip profit in first half of 2011

EDL Gen makes 188 billion kip profit in first half of 2011

EDL Gen made a net profit of about 188 billion kip over the first six months of this year, according to the public company.

The company plans to generate revenue of about 793 billion kip this year and make a net profit of about 550 billion kip in 2011.

EDL Gen must work hard to achieve its forecasted annual profits. Heavy rainfall in recent weeks is expected to boost the electricity generating capacity of the company over the remaining two quarters of this year. In 2010, EDL Gen generated revenue of 758 billion kip with a net profit of 292 billion kip.

The report also shows that the total assets of the company have seen 1.17 percent growth from 5,052 billion kip to 5,111 billion kip, while the total equity of the company has experienced remarkable growth of 41 percent from 2,626 billion kip to 3,698 billion kip. Total liability dropped 42 percent from 2,426 billion kip to 1,412 billion kip.

The government has sold 25 percent of its shares in EDL to staff of the company, local and foreign investors since December last year, as part of efforts to mobilise investment capital for national socio-economic development.

EDL Gen shares fell 100 kip on Friday to close with a current value of 4,950 kip per share. The company said that earnings per share are 218 kip. The IPO price of EDL Gen was 4,300 kip per share.

BCEL bank, the other public company listed in the stock market, generated revenue of 164 billion kip over the first six months of this year, making a net profit of about 157 billion kip. The bank plans to make a profit of 212 billion kip this year.

Most of the company's revenue is from loan interest, currency exchange and services. The bank recently provided US$71 million in loans for Lao Airlines to buy two 142-seat aircraft from a French company.

The company had already achieved 78 percent of its projected annual profit. The total assets of the public bank reached 12,266 billion kip, about an 18 percent increase, while its total equity reached 906 billion kip, which is about a 15 percent increase.

Earnings per share of the commercial bank are currently 1,146 kip. The price of BCEL shares on the Lao stock market remained unchanged at 7,000 kip per unit on Friday. A French bank has agreed to buy 10 percent of BCEL shares from the government at 11,000 kip per unit.

vientiane times