Ocean Group shares put under control

The Ho Chi Minh Stock Exchange (HoSE) placed shares of Ocean Group under control on Tuesday instead of trading restrictions as previously.

The reason is that Ocean Group (HoSE: OGC) failed to release its financial report in time as regulated.

In addition, the HoSE also decided to keep the warning status on OGC shares because the after-tax profit of the parent company's shareholders in the first six months of 2022 was negative VND33.53 billion ($1.43 million).

Undistributed after-tax profit as of June 30, 2022 was negative VND2,760 billion ($117.3 million) based on the semi-annual consolidated financial statement in 2022.

In Q3, the group's consolidated revenues reached more than VND592 billion ($25.15 million), increasing sharply from VND85 billion ($3.61 million) in the same period last year.

OGC recorded an after-tax profit of more than VND127 billion ($5.4 million) in the quarter, up 353% year-on-year. This result is much more positive than the previous two quarters when the company lost VND21.25 billion and VND14.39 billion, respectively.

According to the explanation of OGC, the difference in profit between the two comparative periods is mainly due to the recording of dispute settlement results related to previous derivative transactions at the parent company and production and business activities of the group's member units that were restored after the Covid-19 pandemic.

In the first nine months of the year, OGC recorded revenues of VND851.5 billion ($36.18 million), 1.7 times year-on-year and after-tax profit of VND121 billion ($5.14 million), down 18%. With this result, OGC has fullfilled 89% of its revenue plan and exceeded 76% of the whole year's after-tax profit plan.

After the State Bank of Vietnam (SBV) acquired the financially-troubled OceanBank for zero Vietnamese dong in 2015, OGC no longer owns 20% of the bank's charter capital.

OceanBank may later be transferred to another bank. Most recently, leaders of MB Bank appeared at a conference to deploy OceanBank's business mission this year and spoke about "the cooperation between both sides".

Under the SBV's direction, MB Bank will discuss with OceanBank's leaders a suitable program for future operations.