What will drive REE's business performance in 2025?

A decline in hydropower revenue caused REE to record a decrease in net profit after minority interest (NPMI) in 2024 compared to the previous year.

Decline in Both Revenue and Profit

REE's business performance in 2024 did not meet expectations. By the end of 2024, according to its financial report, REE recorded revenue of VND 8.4 trillion, a 2% decrease, and NPMI of VND 1.994 trillion, a 9% drop. Accordingly, REE fulfilled 79% and 83% of its 2024 business plan targets, respectively.

The decline in REE's 2024 revenue was primarily due to the power business, with commercial electricity generation falling by 12%. Low water levels in the first half of 2024 caused a 20% loss in hydropower revenue. This indicates that the revenue loss was caused by bad weather conditions. Meanwhile, the 9% loss in NPMI was mostly due to (1) a 28% decrease in hydropower earnings, as contracted electricity output was only 98%, resulting in reduced production volume; and (2) lower office leasing profits due to depreciation costs from E-town 6. These factors influenced the turnaround in REE's M&E division, which earned a net profit of VND 150 billion after losing VND 9 billion in 2023.

This result includes highly positive business indicators recorded separately for Q4/2024, a period of significant leadership changes at REE. Notably, Nguyễn Thị Mai Thanh, the founder of REE, stepped down as Chairwoman of the Board after 31 years and returned as CEO of REE on November 22, 2024. Replacing her as Chairman of the Board is Alain Xavier Cany, representing foreign fund Platinum Victory Pte. Ltd., which currently holds a 41.42% stake in REE’s charter capital.

Expectations for the Power Segment

As part of a large diversified corporation, REE currently derives revenue and profit from four main segments: energy (including hydropower, wind power, solar power, thermal power, retail electricity, and others); office leasing and real estate; M&E; and water.

In the power segment, while hydropower revenue declined in 2024 due to adverse weather conditions reducing output, the power sector is expected to drive REE’s growth in 2025.

According to SHS, REE's profit increase in 2025 will be driven by the return of the La Niña weather phase, while the hydropower segment will experience a negative impact from El Niño in 2024. As a result, hydropower will be the primary development engine, with a projected income of VND 2.968 trillion, a 30% increase. Favorable weather conditions would help REE's energy business generate VND 4.743 trillion in revenue, a 17% increase, while the gross profit margin is expected to improve from 43% in 2024 to 52%, reaching VND 2.484 trillion. Additionally, SHS emphasizes that modifications to the Electricity Law have prepared the path for renewable energy projects, which are consistent with REE's long-term development goal.

The determined accumulation and control efforts at REE by foreign fund Platinum Victory—part of the Jardine Matheson Group, which also holds significant stakes in Vinamilk (10.62%) and Thaco (26.57%)—strengthen REE’s long-term outlook. The total value of Jardine’s stakes in these three companies is estimated to exceed USD 2 billion, reinforcing REE’s potential as the energy sector becomes a key driver for corporate and economic growth.