NSH Petro suffers second successive quarterly loss as Q1 revenue plunges 88%

Nam Song Hau Trading Investing Petroleum JSC, or NSH Petro - a major fuel supplier in Vietnam’s Mekong Delta region, incurred a net loss of VND24 billion ($942,730) in Q1 this year, a stark contrast to the VND199 billion profit recorded in the same period of 2023.

This was the second consecutive loss-making quarter for PSH Petro, according to its consolidated financial statements.

The firm, listed on the Ho Chi Minh Stock Exchange (HoSE) as PSH, experienced an 88% year-on-year plunge in revenue to VND476 billion ($18.7 million) in Q1/2024.

As of end-Q1, the company had long-term liabilities of VND1.41 trillion ($55.4 million), little changed from early this year. Its short-term liabilities hiked by VND633 billion to VND5.3 trillion. Taxes and other payables to the state declined to VND1.27 trillion from VND1.3 trillion.

The firm has been reeling from cash flow difficulties since Q4 last year. It has continuously delayed bond yield payments and was compelled by tax authorities to pay a total of VND1.23 trillion ($48.4 million).

To resolve troubles and secure financing for its investments, NHS Petro signed an agreement to borrow $720 million from Australia’s Acuity Funding on February 27, the fuel supplier’s leadership board said.

The Vietnamese firm has fulfilled asset valuation procedures to secure the loan, and the Australian fund will disburse $290 million for NSH Petro in Q2. This 20-year credit package will support the fuel supplier in settling tax arrears, overdue debts, and outstanding bond obligations.

This year, the firm targets to raise its charter capital by VND1 trillion to VND2.26 trillion ($94.2 million). It also aims to double its revenue to VND14.57 trillion and raise its net profit sevenfold to VND327.7 billion ($12.88 million) from 2023.