POWER GENERATION JOINT STOCK CORPORATION 2

From a credit risk management perspective, POWER GENERATION JOINT STOCK CORPORATION 2 (TỔNG CÔNG TY PHÁT ĐIỆN 2 - CÔNG TY CỔ PHẦN), also known as EVNGENCO2, presents a mixed but generally stable financial profile with notable state backing. The company, operating under tax code 1800590430, is headquartered at No. 1, Le Hong Phong Street, Tra Noc Ward, Binh Thuy District, Can Tho City, Vietnam, and is a major electricity generator within the Vietnam Electricity (EVN) system, with EVN holding 99.86% of its shares.

As of 2023, the company maintained a substantial total asset base of approximately USD 1.07 billion, only slightly reduced from the previous year. Owner’s equity stood at USD 553.89 million, down 6.1%, signaling a modest contraction in retained earnings or revaluation adjustments. While both asset and equity bases have slightly decreased, the company's underlying capital structure remains strong, bolstered by a charter capital of nearly USD 488 million, which is fully paid up.

In terms of revenue, EVNGENCO2 reported USD 179.93 million in sales, representing a 7.62% decrease compared to the previous year. Although sales declined, the company delivered a remarkable 30.23% growth in net profit, achieving USD 142.73 million in earnings. This profitability surge, despite revenue pressure, suggests effective cost controls, operational efficiencies, or favorable shifts in pricing or production mix. This development is a key strength from a credit standpoint, indicating resilience in generating returns even under subdued revenue conditions.

The company reports a healthy working capital balance of over USD 116 million, providing ample liquidity to meet short-term obligations. Its operations are diversified within the energy sector, including not just electricity generation but also transmission, power-related mechanical manufacturing, industrial installations, and consultancy services. With just 100 employees, its relatively lean workforce, given its capital intensity, implies a reliance on automation and technology in the power generation process.

The dominant shareholder—Vietnam Electricity (EVN)—is a state-owned conglomerate, and its ownership significantly mitigates default risk, ensuring political and financial backing in times of stress. While the slight drop in total assets and sales should be monitored, the strong profit rebound, solid equity position, and strategic national importance of its operations position POWER GENERATION JOINT STOCK CORPORATION 2 as a low-to-moderate credit risk, with state ownership acting as a de facto guarantor. Future credit exposure should nonetheless be contingent on continued profitability trends and asset stability, particularly in light of sector-wide shifts in energy pricing and environmental regulations.