Business

Coal companies report rises in revenues but declining profits

As mining activities are seasonal and affected by the weather, revenue and profit of coal mining businesses have fluctuated continuously over the past 10 years.
Coal companies report rises in revenues but declining profits ảnh 1Mong Duong Coal (MDC) achieved profit of 79 billion VND in 2010, but by the end of 2020, this enterprise only reported profit of 27.8 billion VND (Photo: mongduongcoal.vn)
Hanoi (VNS/VNA) - As mining activities are seasonal and affected by theweather, revenue and profit of coal mining businesses have fluctuatedcontinuously over the past 10 years.

Vinacomin - Northern Coal Trading Joint Stock Company (TMB) saw an averagegrowth rate of 9 percent in revenue every year during the 2010-2020 period.

Vinacomin - Coal Import Export Joint Stock Company (CLM) has reported a 17 percent rise in revenue during the past 10 years, from 1.6 trillion VND (69.4million USD) to 7.5 trillion VND.

Ha Lam Coal (HLC), Vang Danh Coal (TVD), Ha Tu Coal (THT) and Mong Duong Coal(MDC) witnessed the same average revenue growth in the 2010-2020 period of 6-7percent.

Despite earning trillions of dong inrevenue, coal companies only achieved tens of billions of dong a year inprofit, with some even suffering losses.

Compared to 2010, the profits of coal companies were almost unchanged.

Mong Duong Coal (MDC) had a profit of 79 billion VND in 2010 – the highestin the group mentioned above. But by the end of 2020, this enterprise onlyreported 27.8 billion VND in profit.

Coc Sau Coal (TC6) witnessed profit fall from 67 billion VND in 2010 toonly 5.6 billion VND in 2020, the lowest level among the group, although itsyearly average revenue is much higher than many other businesses in theindustry.

The merger between Cao Son Coal (TCS) and Tay Nam Da Mai Coal (TND) also didnot help Cao Son Coal improve its profit in 2020, hovering at more than 54billion VND.

Viet Bac Mining (MVB), which started the equitisation process in 2015, made abreakthrough in profit growth with 55 billion VND in 2015, soaring to 270billion VND in 2020, a jump of 37 percent.

Businesses in the coal mining industry have to confront specific risks such asthe reserve of open-pit mines gradually drying up.

Most mines are exploited deep underground, with some at even 300mbelow sea level. Underground coal mines have higher soil removal costscompared to open-pit mines, which leads to less competitive coal prices.

Mining activities are seasonal and affected heavily by the weather. Due to thenegative impact on the environment, taxes and fees for the coal industry arealways high and tend to increase.

However, if comparing coal stocks, it can be seen that there are still goodstocks with low price-to-earnings (P/E) rates and high dividend payout ratios.

Leaders of the Vietnam National Coal and Minerals Group (Vinacomin or TKV) saidthat the coal industry was facing many difficulties due to the impact of theCOVID-19 pandemic, which has caused millions of tonnes of coal residuals at theyards and warehouses of TKV.

They said the coal demand for the economy in 2021 will not grow much, stayingat the same level as in 2020. In addition, the mining conditions areincreasingly difficult due to the rising depth underground, hampering thetransportation process./.
VNA
#coal companies #coal mining #Vinacomin #Mong Duong Coal #coal industry #mining industry #updated Vietnam news #Vietnamplus #Vietnam News Agency
Follow VietnamPlus

Related News

Plan to power up energy sector

Plan to power up energy sector

Providing a sufficient source of energy to facilitate Vietnam’s industrialisation and modernisation while also ensuring national energy security remained a challenge as Vietnam and the region are importing more and more energy.

See more

Members of the RoK delegation visit booths showcasing signature agricultural products of Da Lat – Lam Dong. (Photo: VNA)

Lam Dong seeks stronger economic, tourism links with RoK

Lam Dong is particularly interested in sectors in which Korean businesses have strengths, including agriculture, green energy, the circular economy, high-quality tourism, healthcare, education, human resources training and digital transformation, an official said.

Illustrative image (Photo: EVNNPT)

EVNNPT seeks over 224 mln USD in bank loans for grid expansion

Three projects account for part of the financing need, including 13.3 million EUR for the 220kV Ung Hoa substation and connection lines, 18.6 million EUR for the 220kV Tan Viet substation and the 220kV Tan Viet–Gia Loc–Pho Noi line, and 35.3 million EUR for the 220kV substation connecting the Dong Anh–Van Tri transmission line.

At a farm produce supermarket in Hue city (Photo: VNA)

Inflation control key to maintaining growth momentum

Average consumer price index (CPI) rose 4.52% in the first nine months, roughly in line with the National Assembly (NA)'s full-year target, while core inflation climbed 4.26%, the National Statistics Office (NSO) reported. CPI in some localities ran above the national average, including economic hubs Hanoi and Ho Chi Minh City.

According to experts, Vietnam’s relatively attractive valuation could help draw active investors. (Photo: VNA)

Capital-market channels widened after FTSE upgrade: expert

Vietnam officially entered FTSE Russell’s Secondary Emerging Market category on September 21 after reforms to trading, settlement and foreign-investor access. The reclassification gives Vietnamese equities access to a much larger pool of international capital, but also puts them in direct competition with other emerging markets.

Lao products are promoted at a trade fair in Dien Bien province in September 2026. (Photo: VNA)

Vietnam, Laos seek to expand room for trade, investment cooperation

Vietnam and Laos aim to boost bilateral trade in 2026 towards the milestone of 10 billion USD by 2030, a target said to be challenging but feasible as both Governments work to remove trade barriers, improve border-trade mechanisms, and strengthen transport and logistics connectivity.

At a garment company in Bac Ninh city. (Photo: VNA)

Bac Ninh maintains its lead nationwide in import-export scale

Exports totaled almost 87.5 billion USD while imports hit 90.3 billion USD. The figures show output at the electronics manufacturing hub is still expanding. They also underscore the need for local companies to build capacity and capture more value in supply chains.

Panamanian President José Raúl Mulino speaks at the Panama-Vietnam Business Forum on October 7 in Hanoi. (Photo: VNA)

Vietnam, Panama seek to expand economic cooperation

In the presence of President Mulino, VCCI and the Chamber of Commerce, Industries and Agriculture of Panama signed a memorandum of understanding (MoU) to strengthen cooperation, enhance trade and investment promotion programmes, and support bilateral investment and trade.

Ministry updates on Vietnam-US reciprocal trade agreement talks

Ministry updates on Vietnam-US reciprocal trade agreement talks

The US is one of Vietnam’s major trading partners and holds paramount importance to the country’s exports. The conclusion of the bilateral trade agreement will help establish a stable and balanced trade framework toward sustainable development and open up greater opportunities for cooperation between the two countries.

MICE visitors enjoy services at Song Be Golf Resort in Ho Chi Minh City. (Photo: VNA)

Ho Chi Minh City shifts MICE tourism from venues to experiences

Ho Chi Minh City boasts significant advantages for MICE tourism, with the central area offering strengths in finance, trade and services; Binh Duong in industry, exhibitions and business connectivity; and Ba Ria-Vung Tau and Con Dao in marine tourism, resorts, ecology and distinctive experiences.