• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Friday, May 9
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    Trump Announces First Post-Tariff Trade Deal

    May 8, 2025

    Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

    May 7, 2025

    Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

    May 7, 2025

    Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

    May 7, 2025

    ‘Wait Them Out’: John Kennedy Tells Larry Kudlow One Lie He Suspects China’s Telling US

    May 7, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»Is Laos Planning to Sell Off More of Its Energy Sector to China?
Finance

Is Laos Planning to Sell Off More of Its Energy Sector to China?

July 2, 2024No Comments5 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Is Laos Planning to Sell Off More of Its Energy Sector to China?
Share
Facebook Twitter LinkedIn Pinterest Email

What is happening at Électricité du Laos (EDL), Laos’ badly indebted state-run energy utility? Up until early 2021, it owned a three-quarters stake in the EDL-Generation Public Company (EDL-Gen), a publicly listed subsidiary. Created in 2010, as part of a drive by the government to improve the efficiency of its incompetently and debt-laden state-run enterprises, EDL-Gen took over most of its parent company’s energy generation assets and stakes in independent power producers, as well as subsequently building its own generation facilities. Basically, EDL-Gen generates and sells the electricity to EDL, which then sells it to domestic consumers. Still, up until 2021, EDL controlled a 75 percent stake in EDL-Gen.

However, in February 2021, EDL sold 24 percent of its shares to Phongsubthavy Group, specifically to a subsidiary, the Phongsubthavy Road-Bridge, Building and Irrigation Construction Sole Company. Phongsubthavy Group is a many-armed conglomerate with principal interests in construction and infrastructure development. Its owner and chairman, Phongsavath Senaphuan, is well-connected and up until this year sat on EDL-Gen’s board. He departed because, in February, Phongsubthavy Group transferred the same percentage of shares back to EDL. Why the flip-flop?

Phongsubthavy Group could have decided that holding EDL-Gen stock no longer made financial sense. In 2023, EDL-Gen made a net loss of around 1.09 trillion kip ($60 million) and there was no dividend payment for shareholders last year (because of the net loss), according to minutes of its annual general meeting in March. That said, EDL-Gen did make a profit of 2.1 trillion kip (around $140 million) in 2022. Moreover, EDL-Gen’s first-quarter report for this year states that basic earnings per share were 52 kip in March this year, compared with 35 kip in March 2023, which would suggest that Phongsubthavy Group’s sell-back wasn’t primarily business-orientated. Indeed, Viengsavanh Senaphuan, who I believe to be the wife of Phongsavath Senaphuan, still holds 1.5 percent of EDL-Gen’s shares.

See also  Exxon's $4.9 billion Denbury deal boosts energy transition plans

Phongsubthavy Group could have been pressured to sell back the shares amid a high-level reshuffle within the Ministry of Energy and Mines that also took place in February. Vongsakoun Yingyong, managing director of the EDL-Gen, became the new director of EDL. Chanthaboun Soukaloun, EDL’s previous director, became deputy energy minister.

Because of the collapse of Laos’ currency in 2021, the sell-back was a good deal for EDL. When EDL-Gen was incorporated in December 2010, it had 2.6 trillion kip ($325 million at the exchange rate at the time) in registered capital, divided into 651 million shares at 4,000 kip per share (worth $0.50 at the time). I do not believe that EDL-Gen has increased the number of shares since Phongsubthavy Group bought out EDL’s stake in 2021. If each share was still priced at 4,000 kip, that would put the value of the sale in February at around 161 billion kip, which, because of the depreciation of the kip, was worth $8.9 million at the time. But when Phongsubthavy Group bought the 24 percent stake in 2021, before the kip had massively deteriorated, those shares would have been worth $17.3 million. Presumably, EDL could write up the $8.4 million difference as profit.

However, a rumor I hear from sources in Laos is that EDL might be preparing to sell a major stake in EDL-Gen to a Chinese bidder, expanding China’s interest in the energy network of its southern neighbor. In 2020, EDL and the China Southern Power Grid Company agreed to establish a new entity called Electricite du Laos Transmission Company (EDL-T) to develop the country’s power grid, principally its transmission lines, which badly needed an upgrade. The deal was highly controversial since EDL effectively sold its power transmission network to China Southern Power, the 90 percent shareholder of EDL-T, putting it in charge of how electricity is supplied domestically and internationally (EDL-T also handles connections to power grids in neighboring countries). EDL-T officially started its operations on January 29 this year, days before the EDL bought back its shares in EDL-Gen.

See also  Disney's 'Indiana Jones 5' Bombs All Over the World with $2.3 Million Opening in China

EDL is badly in debt, perhaps to the tune of around $5.7 billion (about 45 percent of the country’s GDP). Laos’ entire national debt now stands at around 130 percent of GDP, meaning Vientiane has almost no capital to fund domestic infrastructure projects (or even to employ enough public workers) and Vientiane is struggling to meet its debt obligations.

Moreover, Vientiane’s new idea is to boost solar and wind power production. Partly that’s so it can increase energy exports, adding non-hydro to Laos’ “battery of Southeast Asia” vision. Vietnamese investors are building at least a dozen non-hydro renewable energy projects in Laos. The Nam Theun 2-Solar farm, Southeast Asia’s largest solar project, will likely be completed next year. Moreover, Vientiane is troubled by seasonal energy shortages. Most of Laos’ domestic energy supply comes from hydro. During the rainy months, it has a surplus – one reason why it has welcomed energy-guzzling cryptominers. But come the dry season, when the hydro dams are low on water, demand outpaces supply, forcing EDL to re-import energy at a very costly rate and to sell to domestic consumers at a major loss.

So, it would make some sense that EDL wants to sell off some EDL-Gen shares to a Chinese company.

China energy Laos Planning Sector Sell
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Trump’s Tariffs Trigger Turmoil In China As Country’s Economic Tailspin Intensifies Per New Data

May 6, 2025

American Manufacturers Overwhelmed With Orders After Trump’s Tariff Crackdown On China

May 5, 2025

Trump Closes Tariff Loophole That Let China Flood America With Knockoff Goods, Drugs

May 2, 2025

China Erupts: Furious Workers Riot As Factories Collapse Under Trump’s Tariffs

May 1, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Jack Smith Has Evidence Treasonous Trump Shared Nuclear Sub Secrets

October 6, 2023

Legendary Rockstar Loses It Over Biden And Offers Solutions On How To Save The USA In Epic Interview

April 20, 2023

Connecticut Governor Poised To Sign State’s Most Sweeping Gun Measure Since Post-Sandy Hook Laws

June 4, 2023

Viva La Libation! French Diners SIP WINE Despite Raging Protest Fire

March 31, 2023
Don't Miss

Trump Announces First Post-Tariff Trade Deal

Business May 8, 2025

President Donald Trump announced Thursday the U.S. has reached a trade agreement with the U.K.,…

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025

Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

May 7, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,110)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,626)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

Migrants Resume Border Crossings into Texas Town as Biden Admin Re-Opens Rail Bridge

September 26, 2023

Wrestling Legend Hulk Hogan Helps Rescue Woman After Car Accident

January 16, 2024

Leon Black pays settlement to U.S. Virgin Islands to avoid Epstein legal claims

July 22, 2023
Popular Posts

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.