High-speed ferry operator Superdong Kien Giang posts 40% fall in Q1 profit

Superdong Fast Ferry Kien Giang JSC reported an after-tax profit of VND20 billion ($785,700) on net revenue of nearly VND108 billion ($4.24 million) in Q1/2024, down 40% and 8% year-on-year, respectively, according to its financial statements.

Per its documents to be submitted to the 2024 AGM later this month, Superdong Kien Giang targets net revenue of VND431 billion ($16.93 million) and an after-tax profit of VND73 billion ($2.87 million) this year, an increase of around 5% year-on-year.

Thus, after Q1, the company achieved 25% and 27% of its yearly revenue and after-tax profit targets. The firm’s representative attributed the decrease in Q1/2024 net revenue to falling revenue from the Ha Tien - Phu Quoc and Rach Gia - Phu Quoc ferry routes due to price competition.

The company has applied many policies to stimulate market demand, achieving higher revenues over the same period last year from the remaining routes such as Rach Gia - Lai Son, Soc Trang - Con Dao, Phan Thiet - Phu Quy, he said.

Superdong Kien Giang was established in 2007 with an initial charter capital of VND10 billion ($3.93 million), which has risen to VND633 billion ($24.87 million) at present. In 2014, the company listed its shares on the Ho Chi Minh City Stock Exchange (HoSE) as SKG. Is is now headquartered in Phu Quoc island, under the Mekong Delta province of Kien Giang.

The firm owns 16 high-speed boats and two ferries serving passengers to the islands of Phu Quoc, Nam Du, Hon Son, Hon Nghe, Con Dao and Phu Quy. This is one of the enterprises holding a large market share in passenger transport by sea.

After many quarters of losses due to the Covid-19 pandemic, Superdong Kien Giang quickly recovered and benefited from tourism support policies from 2022. But since Q3/2023, negative information about the tourism market in Phu Quoc has caused the company’s revenue and profit to plummet. In Q4/2023, it reported a net loss of nearly VND7 billion ($274,995).

SKG shares closed Monday at VND14,200 ($0.56) each.