PVTrans arm Gas Shipping incurs 46% drop in Q2 profit on weak market

Gas Shipping JSC (HoSE: GSP), nearly 68% owned by PetroVietnam Transportation Corp (PVTrans), reported a 46% decline in net profit in the second quarter of this year, as higher operating costs and a challenging freight market weighed on earnings.

According to its latest financial statements, Gas Shipping posted net revenue of VND1.49 trillion ($56.63 million) in Q2, up VND13 billion ($494,740) from the same period last year.

Despite largely flat revenue, gross profit rose 29% year-on-year to VND53 billion ($2.02 million), with the gross profit margin improving to 3.5% from 2.7% a year earlier.

However, financial income plunged 75% to around VND2 billion ($761,140), while financial expenses and administrative expenses increased 17% and 36%, respectively, to nearly VND14 billion ($532,800) and VND19 billion ($723,080).

As a result, pre-tax profit fell 44% year-on-year to VND18.5 billion ($704,050), while net profit dropped 46% to VND14.5 billion ($551,820).

In its filing, Gas Shipping said profitability was hurt by difficult market conditions and intensifying competition in the shipping sector. The market faced many challenges during the period, while operating and related costs increased, negatively affecting business performance, the company said.

The results highlight mounting pressures facing shipping companies as freight rates remain volatile and operating costs continue to rise.

For the first six months of 2026, Gas Shipping reported net revenue of VND2.20 trillion ($83.8 million), up 13% a year earlier. However, net profit fell 26.7% year-on-year to nearly VND41 billion ($1.56 million).

The company set a full-year net profit target of VND104 billion ($3.96 million) for 2026, up 7% from the previous year. After six months, it had completed around 39% of the year's earnings target.

As of June 30, 2026, Gas Shipping’s total assets stood at VND2.33 trillion ($88.63 million), up more than 14% from the beginning of the year. Fixed assets accounted for 65% of total assets, equivalent to VND1.51 trillion ($57.54 million), reflecting the capital-intensive nature of the shipping business.

Cash and cash equivalents declined sharply by 63% to VND73 billion ($2.78 million), while short-term financial investments surged 75% to VND128 billion ($4.87 million).

Total liabilities rose 23% to VND1.39 trillion ($52.75 million). Short- and long-term borrowings and lease liabilities accounted for VND783 billion ($29.8 million), or 56% of total liabilities. Notably, customer advances jumped from VND1.4 billion ($53,280) to VND139 billion ($5.29 million) at the end of Q2.

According to the company’s financial statement notes, the increase was mainly attributable to a VND136 billion ($5.18 million) advance payment from Singapore-based PNX Petroleum Singapore Pte. Ltd.