Dinh Vu Port in the northern province of Hai Phong. (Photo: dinhvuport.com.vn) Hanoi (VNS/VNA) - Seaport companies still reported positive earningsdespite the impacts of the COVID-19 pandemic.
Accordingto Sacombank Securities Joint Stock Company (SBS), due to the pandemic, portthroughput has decreased in growth momentum compared to previous years asexports to Europe and the US fell sharply. Key products such as apparel andleather shoes witnessed orders fall more than 50 percent.
However,in general, seaports were still among the least affected industries amidCOVID-19, SBS said.
Accordingto the Vietnam Maritime Administration, in the first eight months of this year,the total output of goods through Vietnam's seaports was estimated at nearly485.3 million tonnes, the volume of container cargo reached more than 13.9million Teus, up 6 percent and 8 percent respectively over the same period in2019.
SBSsaid that the EU-Vietnam Free Trade Agreement (EVFTA) taking effect would boostthe development of the seaport and logistics industries in the long term.
TheEVFTA would help Vietnam's exports increase by an average of 4-6 percent peryear within 10 years from the date of the entry into force of the agreement.
DinhVu Port Investment and Development JSC (DVP) reported net revenue of more than 237billion VND (10.2 million USD) in the first half of this year, down nearly 18 percent,but post-tax profit reached more than 139.4 billion VND, similar to theprevious year.
Meanwhile,Tan Cang Logistic JSC (TCL) recorded revenue of over 512.1 billion VND,post-tax profit reached more than 42.1 billion VND, up 14 percent and 5.5 percentrespectively compared to the first six months of 2019.
DanangPort Joint Stock Company (CDN) recorded revenue of over 439.6 billion VND and after-taxprofit of more than 113 billion VND, up 17.5 percent and 26.6 percentrespectively compared to 2019.
Otherseaport enterprises such as Hai Phong Port JSC (PHP), Saigon Port JSC (SGP), HaiAn Transport and Handling JSC (HAH), Southern Logistics JSC (STG) and TransimexTransportation JSC (TMS) also recorded positive business results in the firsthalf of the year, SBS said.
SBSforecasts that the performance of this group of businesses will declineslightly in the second half of this year, especially for those businesses inthe northern region due to increased competitive pressure.
Theseaport industry had not been directly affected but would surely be impactedindirectly when the global economy enters a major recession, SBS said.
Theappearance of a series of new ports on a large scale led to an oversupply,which would make competition stiffer, especially in key areas such as Hai Phongport cluster and Cai Mep-Thi Vai port cluster.
InHai Phong, two new ports have come into operation including MIPEC port andVinalines Dinh Vu port.
Thismeans the revenue and profitability of businesses operating in these areas willcontinue to decline.
However,in general, seaport operators, cargo transportation and warehousing companieswere less dependent on loans compared to other industries so they did not haveto suffer as much pressure, said SBS.
Thiswas a huge advantage compared to other industries in the current pandemic whichis forecasted to last for a long time, SBS said.
Inseaport industries, the listed enterprise with the largest debt to asset ratiois Transimex JSC (TMS) with only 25.2 percent.
Thatratio of Hai Phong Port JSC (PHP), Tan Cang Logistics JSC (TCL), Saigon PortJSC (SGP) are all lower than 15 percent. Dinh Vu Port Investment andDevelopment JSC (DVP) even reported no debt.
Thelarge amount of cash can help these businesses quickly restore operations whenthe pandemic is controlled.
Accordingto SBS, with less negative impact from disease, seaport stock prices remainmore stable than the general market.
Theplunge of the local stock market after the Tet holiday also affected this groupbut still much less than the decline of the VN-Index, SBS said.
Somestocks even recorded growth such as Vietnam Container Shipping Joint StockCorporation (VSC), up nearly 26 percent since the beginning of this year. Tan CangLogistics JSC (TCL) rose by more than 37.2 percent, Port of Hai Phong JSC (PHP)increased by over 13.8 percent, Danang Port Joint Stock Company (CDN) grew bymore than 18.1 percent and Hanoi Construction Corporation – JSC (HAN) climbedby more than 8.4 percent.
SBSsaid the current difficulties that the seaport industry was confronting wereonly temporary. Along with the forecast that countries will soon produce aCOVID-19 vaccine next year, the industry's recovery is likely to begin in thesecond half of 2021, SBS said./.
VNA
