Leading builder Licogi profit drops 83% in 2022

Licogi Corporation, a leading construction firm in Vietnam, earned a post-tax profit of VND19.85 billion ($850,000) in 2022, down 83% year-on-year, according to its financial report.

The firm posted revenue of VND1.99 trillion ($84.81 million), down VND2 billion or 0.01% year-on-year.

As a result, the builder, listed on the unlisted public company market UPCoM as LIC, met only 76% and 22% of its revenue and profit targets.

In the last quarter of 2022, Licogi recorded a post-tax loss of VND7.96 billion ($339,200) versus a post-tax profit of VND90.3 billion ($3.95 million) a year ago. Meanwhile, revenue inched up 3% year-on-year from VND624.4 billion ($26.63 million) to VND641.7 billion ($27.36 million).

The business attributed the loss to the underperformance of its subsidiaries and joint ventures, particularly lower profits from Licogi 2, Licogi 20, and Licogi 14.

The Hoang Liet new urban area in Hanoi has been a long-term problem for Licogi. In 2004, Hanoi authorities issued a decision to claim 35 hectares in Hoang Mai district for the implementation of the project. However, the project remains incomplete due to the slow progress of Licogi, the project investor.

The financial report showed that Licogi's cost for business and production went up 7% year-on-year to VND1.21 trillion ($51.68 million) in 2022, including VND1.19 trillion ($50.66 million) for the Hoang Liet project.

LIC shares closed unchanged at VND16,000 ($0.68) on January 19, the last day before the country's Lunar New Year holiday.,