EVN clarifies record profits in 2025, says parent company still carries losses

EVN clarifies record profits in 2025, says parent company still carries losses

EVN has defended its 2025 profit surge and VNĐ152 trillion ($5.8 billion) in bank deposits, saying the funds are needed for operations, debt repayments and future investments, while accumulated losses remain at the parent company.

Workers of Vietnam Electricity are checking the transmission system. EVN posted after-tax profit of nearly VNĐ51.9 trillion last year, representing a whopping rise of 529.8 per cent from VNĐ8.24 trillion in 2024. — VNA/VNS Photo

Vietnam Electricity (EVN) has moved to clarify its sharp increase in profit in 2025 and its sizeable bank deposits worth VNĐ152 trillion (US$5.8 billion), saying the group's consolidated earnings do not mean the parent company has fully erased accumulated losses and that the cash holdings are needed to support operations, debt obligations and future investments.

According to EVN’s consolidated financial statements audited by Deloitte, the group reported revenue of VNĐ645.7 trillion in 2025, up 11.2 per cent from the previous year.

EVN posted after-tax profit of nearly VNĐ51.9 trillion last year, a jump of 529.8 per cent from VNĐ8.24 trillion in 2024. The result marked the group's highest profit level in recent years and helped eliminate accumulated losses recorded during 2022-24.

In a statement issued on May 7, EVN said the parent company alone recorded after-tax profit of VNĐ39.8 trillion in 2025, reducing its accumulated losses to VNĐ5.61 trillion by the end of the year.

EVN said it had reported the result to the Ministry of Industry and Trade in May.

Meanwhile, the group’s consolidated financial statements showed after-tax profit of VNĐ51.9 trillion, including VNĐ50.5 trillion attributable to EVN as the parent company.

The consolidated figure includes profits from subsidiaries and affiliated companies in proportion to EVN’s ownership interests, meaning it differs from the parent company’s standalone result, according to the group.

EVN said it was important to distinguish between the audited standalone financial statements of the parent company and the consolidated financial statements of the entire group when assessing its business performance.

The profit attributable to the parent company in the consolidated statements did not take into account the allocation of reserves at subsidiaries or decisions by shareholders regarding dividend distribution and retained earnings.

As a result, EVN said the parent company still had accumulated losses of VNĐ5.61 trillion at the end of 2025, despite the consolidated statements showing no accumulated losses.

Regarding its large deposits, EVN said total cash, cash equivalents and short-term financial investments across the group stood at around VNĐ152 trillion at the end of 2025.

EVN said the figure represented consolidated balances held by member units involved in power generation, transmission, distribution and supporting services.

However, EVN also had more than VNĐ227 trillion in short-term liabilities, including over VNĐ118 trillion payable for fuel purchases and electricity bought from independent power producers, as well as more than VNĐ47 trillion in loans due for repayment.

Maintaining substantial cash balances was necessary to support daily operations and safeguard electricity supply amid volatile fuel prices, EVN said, adding that it was also preparing for significant capital requirements linked to major power generation and grid projects in the coming years.

Both the parent company’s standalone financial statements and the group’s consolidated financial statements for 2025 were prepared in accordance with Vietnamese accounting standards and relevant regulations, EVN said. 

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