EDL Gen earns 72 billion in Q1

EDL Gen earns 72 billion in Q1

EDL Gen public company earned about 72 billion kip (US$9 million) from the sale of electricity to Electricite du Laos over the first quarter of this year, according to an LSX stockbroker.

“Its first quarter earnings were unimpressive due to the colder-than-normal weather and low reservoir levels during the dry season,” the stockbroker is quoted in its report to stock traders.

Despite lower earnings over the first quarter, EDL Gen will see a noticeable increase in its revenue for the remaining period of this year as electricity consumption returns to normal and heavy rains boost the sale of electricity, the stockbroker said.

According to the broker, EDL Gen forecasts revenue of about 864 billion kip (US$108 million) in 2011 with a net profit of 424 billion kip (US$53 million), earning 480 kip (US$0.06) per share and a dividend of 400 kip per share.

The total assets of the power company will reach about US$1.2 billion at the end of this year while the total debt will be US$654 million with US$507 million as a long term loan. The return on assets is projected to be 5.69 percent in 2011 while the return on equity is expected to be 11.71 percent in 2011.

At present, EDL Gen owns seven hydropower plants with total installed capacity of 387 MW and will receive two more power p lants from Electricite du Laos, which holds 75 percent of the shares in EDL Gen. Two power plants – Nam Khan 2 in Luang Prabang province and Houay Lamphan Ngai in Xekong province – are under construction and scheduled to be completed in 2014.

EDL Gen will also receive EDL shares in the four independent power producer projects of Theun Hiboun and Houay Ho in Borikhamxay province and Nam Lik 1-2 and Nam Ngum 2 in Vientiane province. After the transfer of the plants and shares, EDL Gen will have a total electricity production capacity of about 1,096MW.

According to BCEL-KT, EDL Gen's growth opportunities remain intact because of the strong electricity market both domestically and in neighbouring countries. The demand will drive EDL Gen to invest in generation assets and equity, and expand capacity from 387 MW in 2010 to 2,238 MW by 2020.

The price of EDL shares in the Lao Securities Exchange was 5,100 kip per share yesterday. Investors bought about 47,000 shares equaling a total investment of about 243 million kip.

vientiane times