Shipping majors PVTrans, Gemadept buck industry trend with Q2 profit boost

Shipping corporations PVTrans and Gemadept have reported a 46% jump and a five-fold increase year-on-year in Q2 after-tax profits respectively, while peers VIMC, Viconship and Hai An recorded significant drops.

PetroVietnam Transports Corporation (PVTrans) earned net revenues of VND2.1 trillion ($88.4 million) and after-tax profit of VND375.6 billion ($15.8 million), down 7% and up 46%, year-on-year.

Notably, the company recorded financial revenues of VND97 billion ($4.08 million) in the period, up 2.3 times year-on-year.

The company said that its Q2 profits had increased mainly due to higher fleet operation efficiency, better financial performance and profit from liquidation of ships.

In the first six months of 2023, PVTrans posted net revenues of VND4.14 trillion ($174.2 million), down 3% and after-tax profit of VND612 billion ($25.8 million), up 35% year-on-year.

On the Ho Chi Minh Stock Exchange (HoSE), PVTrans's PVT shares closed Thursday at VND23,450 ($0.86).

As of June 30, PVTrans's assets stood at VND14.18 trillion ($597.5 million), with short-term financial investment reaching VND3.17 trillion ($133.5 million), up 17% compared to the beginning of the year.

This year, the firm expects revenues of VND6.8 trillion ($286.5 million) and after-tax profits of VND538 billion ($22.7 million), equal to 71% and 46.5% of 2022's actual tallies.

The company plans to make investments of VND4.11 trillion ($162.2 million), of which VND3.85 trillion will be spent on ships and the rest on capital contribution or stake acquisitions of some member companies like Phuong Dong Viet Shipping And Logistics Corporation, Thang Long Maritime, and Indochina Petroleum Transportation JSC. About 65% of the total investment capital will come from loans and other sources.

Gemadept, a leading port operator and logistics firm in Vietnam, reported a Q2 after-tax profit of VND1.71 trillion ($72.3 million) up 5 times year-on-year, thanks to the sale of Nam Hai Dinh Vu port.

The company recorded VND1.86 trillion ($78.6 million) in revenue from financial activities, mainly the port sale to Vietnam Container Shipping Joint Stock Corporation (Viconship).

Gemadept, listed on the HoSE as GMD, earned Q2 net revenues of VND912 billion ($38.5 million), down 6% year-on-year.

In the first six months, it posted total revenues of VND3.7 trillion ($156.2 million) and after-tax profits of VND1,966 billion ($82.9 million), up 98% and 3 times year-on-year, respectively.

As of June 30, Gemadept's assets stood at VND14.01 trillion ($591.5 million), up 7% compared to the beginning of the year, with short-term assets at VND4.01 trillion ($169.3 million), up 53%. Notably, cash equivalents went up 2.3 times to VND1.44 trillion ($60.8 million).

This year, Gemadept targets revenues of VND3.92 trillion ($167 million), up 3% over laste year; and pre-tax profits of VND1.14 trillion ($48.4 million), up 14%.

On the HoSE, GMD shares closed Thursday at VND56,600 ($2.38) per unit.

Meanwhile, VIMC, Viconship and Hai An saw significant drops in Q2 profits.

Vietnam Maritime Corporation (VIMC), the country's leading maritime service provider, made after-tax profits of VND511 billion ($21.5 million) in Q2, down 48% year-on-year. Its net revenue reached VND3.36 trillion ($141.7 million), down 15%, according to consolidated financial statements.

In the first six months of the year, VIMC recorded net revenues of VND6.21 trillion ($261.8 million) and after-tax profits of VND907 billion ($38.2 million), up 14% and down 46%, year-on-year, respectively.

As of June 30, the company's assets reached VND27.84 trillion ($1.17 billion), up 3% compared to the beginning of the year, with fixed-assets hitting VND9.1 trillion ($383.5 million).

VIMC, registered on the unlisted public company market UPCoM as MVN, closed Thursday at VND19,000 ($0.8) per share.

At the 2023 annual general meeting of shareholders on April 20, VIMC general director Nguyen Canh Tinh said that the corporation targets consolidated revenues of VND13.35 trillion ($569.4 million) and pre-tax profits of VND2.33 trillion ($99.4 million) this year, equivalent to 87% and 76% of 2022's actual figures, respectively.

VIMC has seen a decline in shipping revenues, its main income source, Tinh said

Viconship, the largest port company in Hai Phong city, posted after-tax profits of VND34 billion ($1.4 million) in Q2, down 70% year-on-year, and net revenues of VND534.6 billion ($22.5 million), up 4%.

The company said that its Q2 financial expenses increased due to interest payments on bank loans. The cost of goods sold also increased. Administrative expenses and selling expenses also rose compared to the same period last year.

In the first half of 2023, Viconship earned after-tax profits of VND77 billion ($3.2 million) and net revenues of VND998 billion ($42 million), down 65% and up 2% year-on-year, respectively.

Viconship, listed on the HoSE as VSC, is targeting revenues of VND2.25 trillion ($95.9 million) in 2023, up 12% year-on-year; but expects after-tax profits to fall 45% year-on-year to VND260 billion ($11 million).

The VSC share price closed Thursday at VND34,850 ($1.47).

At the end of Q2, VSC's assets stood at VND4.42 trillion ($186.3 million), up 1% compared to the beginning of the year. Of this, short-term assets were VND1.41 trillion ($59.4 million), up 8%.

At the 2023 annual general meeting of shareholders held March 10, the company approved a pre-tax profit target of VND260 billion ($11.09 million), down 46% year-on-year, and revenues of VND2.25 trillion ($95.95 million), up 12%.

Viconship leaders said high interest payment was a major reason for its low profit target for 2023.

Meanwhile, Hai An Transport and Stevedoring JSC, listed on the Ho Chi Minh City Stock Exchange (HoSE) as HAH, reported Q2 after-tax profit of VND79.7 billion ($3.36 million), down 75% year-on-year.

The company's net revenue of VND611 billion ($25.7 million), was down 34%, according to its consolidated Q2 financial statement.

The company explained Q2 results on the decrease in output and revenue from port operations, given that it was still in the process of upgrading and repairing the yard. The volume of goods transported decreased, rentals from ships fell sharply compared to the same period last year, and fleet costs increased after the addition of HA Rose ship in November 2022, leading to a sharp drop in operating profits.

Besides, the company also recorded a loss from its joint venture company Zim Hai An, which was established and put into operation from March 2023.

In the first six months of 2023, Hai An posted net revenues of VND1.27 trillion ($53.4 million) and after-tax profit of VND206 billion ($8.68 million), down 20% and 64.5% year-on-year respectively.

At Thursday’s close, HAH share price was VND49,900 ($2.1).

As of June 30, Hai An's total assets stood at nearly VND5 trillion ($210.5 million), with cash and cash equivalents at VND377.6 billion ($15.9 million).

In 2023, Hai An has targeted total revenues of VND2.96 trillion ($125.98 million) and post-tax profits of VND492 billion ($20.95 million). Total output will reach 1,006,000 TEU (twenty-foot equivalent unit), of which port operations will account for 418,000 TEU, container transport 396,000 TEU, and depots, 192,000 TEU.

Hai An said it was looking to increase its market share of container transport and the scope of operations on domestic routes, and together with the ZIM-HAIAN, a joint venture with Israeli marine carrier ZIM, develop inner-Asia routes and ensure profitable fleet operations.

The company also plans to continue implementing a project to build three new ships of 1,800 TEU (Bangkok Mark IV) at an estimated cost of VND2 trillion ($85.15 million), and continue looking for used ships.

Leading broker VNDirect believes positive factors could offset the negative impact of price reductions this year. In addition to China's reopening to global trade, average Brent oil price is forecast to stay around $90 per barrel this year, which will help reduce fuel costs for shipping companies.