Vietnam utility suffers $723M loss

Electricity of Vietnam has an unsettled loss of VND15 trillion or US$723.2 million due to exchange rate fluctuations, says the State Audit.

The utility purchased power at high prices and sold it below costs, coupled with lax management of investment and
finance, Le Minh Khai, deputy head of the State Audit.

There is also a potential loss of VND12 trillion or $578.6 million at EVN if coal and gas prices are properly calculated in accordance with market prices and sufficiently included in production costs.

The group will restructure its business this year and withdraw its investments in real estate, stock and banking sectors.

EVN targets a total electricity generation of 118.5 billion kilowatt-hours in 2012, including 67.62 billion kilowatt-hours purchased from providers outside the group.