Multi-sector group PC1 posts lowest net profit in 11 years

Multi-sector group PC1's 2023 net profit plunged 70% year-on-year to VND136 billion ($5.54 million), the lowest level in 11 years.

PC1 Group, listed on the Ho Chi Minh Stock Exchange as PC1, recorded revenues of VND7.8 trillion ($318 million) last year, down 6.6% from 2022, according to its freshly released financial statement.

The company's revenue and net profit in the fourth quarter of 2023 hit VND2.6 trillion and VND71 billion ($2.89 million), up 10% and down 64% respectively over the same period the previous year.

PC1 operates in a variety of industries including construction of power works, real estate, electricity, industrial production and ore mining. Last year, the construction and energy segments saw a sharp decrease in revenue, which was partly offset by industrial production, industrial park operation, and ore sales.

In the real estate segment, revenue from the operation of Japan-Hai Phong Industrial Park in Hai Phong city reached VND614 billion ($25 million) last year, a sharp increase compared to VND80 billion in 2022.

The nickel-copper ore refinery that went into operation in 2023 brought in VND722 billion ($29.4 million) in revenue, not including revenue from selling products generated from the trial run phase.

Debt is still a big burden for the group. High interest rates caused its interest costs to increase from VND605 billion to VND843 billion ($34.37 million) last year, eroding its profit.

At the end of the year, PC1 had a total debt of VND10.74 trillion ($437.8 million), down more than VND1.2 trillion from the beginning of the year. The debt to equity ratio was 1.5.

The largest long-term loans are those that finance the nickel-copper ore refinery, and the Lien Lap, Phong Huy and Phong Nguyen wind power plants.

Construction segment expected to recover strongly in 2024

The group expects the construction segment to recover strongly this year as the value of newly signed contracts in 2023 reached VND3.54 trillion ($144.3 million).

From the end of 2023 to early 2024, the company won many bidding packages under the expanded 500 kV circuit 3 transmission line project with a total value of VND2.1 trillion ($85.6 million), and the 500kV Moonsun transmission line in Laos (VND200 billion or $8.15 million).

The group is targeting the total value of bidding contracts signed this year at VND7.5 trillion ($305.75 million), earning about VND5 trillion in revenue, nearly double that of 2023.

PC1 is also aiming for VND1.6 trillion ($65.23 million) in 2024 revenue from the renewable energy segment. The Bao Lac A 30 MW and Thuong Ha 13 MW hydropower projects are expected to start construction in Q3 this year.

The company hopes to start recording revenue and profit from industrial park projects like Yen Phong II-A in Bac Ninh province. It will develop new projects in Hai Phong city and Ba Ria-Vung Tau province.

The nickel-copper refinery is hoped to bring in VND1.2 trillion ($48.92 million) in revenue this year.

In the stock market, PC1 closed the Friday session at VND29,150 ($1.19) per share.