Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Despite Vietnamese companies’ total net profit growing 81 percentyear-on-year in the first quarter, many still posted big losses.
The nationalflag carrier Vietnam Airlines (HVN) reported the biggest loss of nearly 5trillion VND in the first three months of 2021. This amount increased over 90 percentagainst the same period last year.
The COVID-19pandemic was the main reason severely affecting the carrier’s businessoperations.
As of March31, Vietnam Airlines recorded accumulated losses of over 14.2 trillion VND,exceeding its charter capital and pulling the company's equity from more than 6trillion VND to over 1 trillion VND.
Under theLaw on Securities, if the enterprise has accumulated losses surpassing thecharter capital in the latest audited financial report before the review time,it will be forced to delist. Therefore Vietnam Airlines shares listed on the HoChi Minh Stock Exchange (HoSE) may be cancelled if it doesn’t increase itscharter capital by 8 trillion VND as planned.
The carrieralso has to pay debts of nearly 60 trillion VND. Of which, 12.69 trillion VND isshort-term liabilities and 21.64 trillion VND is long-term liabilities, leadingto the debt-to-equity ratio of 57.7, which is an extremely high risk level.However, the company's cash in its current account is 2.077 trillion VND.
ViettelGlobal is another company posting big losses in the first quarter. Even thoughits net revenue rose 8 percent year-on-year to over 4.6 trillion VND, thecompany still lost 422 billion VND.
The maindriving force in the last quarter came from African markets with revenuejumping by nearly 18.5 percent to 1.75 trillion VND while profit reached nearly300 billion VND, which is the highest among its three main markets. At themoment, its main source of revenue in the African market come fromTanzania, Mozambique and Burundi.
However,Viettel faced a force majeure event related to political uncertainties inMyanmar. The crisis has had a great impact on foreign investors’ businessresults in the market, including Viettel's affiliate Mytel.
MasanHigh-Tech Materials (MSR), Habac Nitrogenous Fertilizer & Chemicals (DHB)and PetroVietnam Drilling & Well Services Corporation (PVD) also reportedlosses of hundreds of billions of VND.
Of which,Masan High-Tech Materials lost nearly 280.8 billion VND in profit after taxdespite a gain of 173 percent year-on-year in net revenue to nearly 3 trillionVND, mostly from selling tungsten.
The losseswere due to higher cost of goods sold and other expenses.
In the firstquarter of 2021, Habac Nitrogenous Fertilizer & Chemicals saw a loss ofover 249 billion VND, resulting in an accumulated loss of more than 5 trillionVND.
In 2020, thecompany lost over 1.46 trillion VND, marking sixth straight annual loss.
PetroVietnamDrilling & Well Services Corporation witnessed a loss of 109.9 billion VNDin profit after tax during the period due to the business of selling belowcost. Last year, the firm posted outstanding performance with profit after taxof 186 billion VND.
The gas andoil industry still faces risks as the recovery of energy demand is slower dueto COVID-19.
Most ofthese companies' shares declined on May 13. Of which HVN, MSR, PVD all droppedmore than 1 percent, while VGI and DHB ended flat./.
VNA
