Worst performers in Q1 revealed hinh anh 1Illustrative image (Photo: VNA)
Hanoi (VNS/VNA) - Despite Vietnamese companies’ total net profit growing 81 percent year-on-year in the first quarter, many still posted big losses.

The national flag carrier Vietnam Airlines (HVN) reported the biggest loss of nearly 5 trillion VND in the first three months of 2021. This amount increased over 90 percent against the same period last year. 

The COVID-19 pandemic was the main reason severely affecting the carrier’s business operations.

As of March 31, Vietnam Airlines recorded accumulated losses of over 14.2 trillion VND, exceeding its charter capital and pulling the company's equity from more than 6 trillion VND to over 1 trillion VND. 

Under the Law on Securities, if the enterprise has accumulated losses surpassing the charter capital in the latest audited financial report before the review time, it will be forced to delist. Therefore Vietnam Airlines shares listed on the Ho Chi Minh Stock Exchange (HoSE) may be cancelled if it doesn’t increase its charter capital by 8 trillion VND as planned.

The carrier also has to pay debts of nearly 60 trillion VND. Of which, 12.69 trillion VND is short-term liabilities and 21.64 trillion VND is long-term liabilities, leading to 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.

Viettel Global is another company posting big losses in the first quarter. Even though its net revenue rose 8 percent year-on-year to over 4.6 trillion VND, the company still lost 422 billion VND. 

The main driving force in the last quarter came from African markets with revenue jumping by nearly 18.5 percent to 1.75 trillion VND while profit reached nearly 300 billion VND, which is the highest among its three main markets. At the moment, its main source of revenue in the African market come from Tanzania, Mozambique and Burundi.

However, Viettel faced a force majeure event related to political uncertainties in Myanmar. The crisis has had a great impact on foreign investors’ business results in the market, including Viettel's affiliate Mytel.

Masan High-Tech Materials (MSR), Habac Nitrogenous Fertilizer & Chemicals (DHB) and PetroVietnam Drilling & Well Services Corporation (PVD) also reported losses of hundreds of billions of VND.

Of which, Masan High-Tech Materials lost nearly 280.8 billion VND in profit after tax despite a gain of 173 percent year-on-year in net revenue to nearly 3 trillion VND, mostly from selling tungsten. 

The losses were due to higher cost of goods sold and other expenses. 

In the first quarter of 2021, Habac Nitrogenous Fertilizer & Chemicals saw a loss of over 249 billion VND, resulting in an accumulated loss of more than 5 trillion VND. 

In 2020, the company lost over 1.46 trillion VND, marking sixth straight annual loss. 

PetroVietnam Drilling & Well Services Corporation witnessed a loss of 109.9 billion VND in profit after tax during the period due to the business of selling below cost. Last year, the firm posted outstanding performance with profit after tax of 186 billion VND. 

The gas and oil industry still faces risks as the recovery of energy demand is slower due to COVID-19.

Most of these companies' shares declined on May 13. Of which HVN, MSR, PVD all dropped more than 1 percent, while VGI and DHB ended flat./.