Southern Vietnam port operator Phuoc An posts heavy loss as forecast

Dong Nai province-based Petrovietnam Phuoc An Port Investment and Operation JSC (UPCoM: PAP) reported a post-tax loss of over VND125 billion ($4.78 million) in Q2/2025, its highest quarterly loss to date, due to revenue falling short of covering cost of goods sold and financial expenses.

Q2 marks the third consecutive quarter in which PAP recorded revenue, following the commissioning of Phase 1 of Phuoc An Port in Dong Nai province at the end of last year, according to its recently released financial statement.

The company’s revenue reached over VND19 billion ($726,718), doubling that of Q1. However, cost of goods sold amounted to VND75 billion and financial expenses reached VND61 billion, resulting in a continued deep loss.

For the first half of 2025, PAP earned nearly VND29 billion ($1.1 million) in revenue but incurred an after-tax loss of VND248 billion ($9.5 million).

As of the end of Q2, the company had accumulated losses of nearly VND279 billion. This outcome had been anticipated by the company’s management, which had forecast a full-year after-tax loss of nearly VND450 billion.

Meanwhile, the full-year revenue target is VND150 billion, of which only around 25% was achieved after H1.

The financial statement also revealed a significant increase in PAP’s asset base. As of end-June, total assets reached VND8.5 trillion ($325.11 million), up 19% from the beginning of the year.

Total liabilities stood at approximately VND6.3 trillion, up by more than VND1.6 trillion. Two notable items include “other short-term payables,” which rose by over VND800 billion to VND843 billion, and long-term debt, increasing by more than VND900 billion to VND3.9 trillion.

According to the audited 2024 financial report, most of the long-term debt came from a VND3 trillion ($114.74 million) loan from VietinBank-Nhon Trach branch. The loan bears a floating interest rate (base rate plus a 3.5-4% margin per year) and is scheduled for principal repayment in 2035. It is secured by port infrastructure and equipment at Phuoc An.

Corresponding with the rise in borrowings, the company’s assets also saw significant fluctuations last year. Cash and cash equivalents surged to VND457 billion ($17.48 million). Short-term prepayments to suppliers increased by more than VND300 billion to VND744 billion ($28.46 million), while short-term loans receivable appeared for the first time at VND216 billion. Construction in progress rose by VND648 billion to nearly VND3 trillion ($114.74 million). None of these items were explained in detail.

For 2025, PAP plans to spend over VND1.5 trillion ($57.37 million) on construction activities and approximately VND579 billion on equipment procurement.

Phuoc An Port is currently operating its phase 1, which includes container berths with a designed capacity of 2.5 million TEUs per year.

According to the master plan, the port will be developed over three phases, featuring nine berths with more than 2,800 meters of quay length. They are capable of handling vessels of up to 4,500 TEUs (approximately 60,000 DWT), with a total designed capacity of up to 5 million TEUs annually.

The port is located upstream on the Thi Vai River in Phuoc An commune, Dong Nai province.

Since phase 1 began operations, PAP has welcomed its first vessel from global container pshipping company MSC. The company is also accelerating the construction of phase 2 and working on procedures for phase 3.

In addition to port operations, PAP has proposed to invest in phase 1 of the Phuoc An Industrial Park, covering 330 hectares, with potential for a phase 2 expansion of 225 hectares.

In the future, the port complex is expected to integrate an inland waterway terminal to enhance transshipment and logistics capacity.

On the Unlisted Public Companies Market (UPCoM), PAP closed Friday at VND27,500 ($1.05) per share, down 7.41% from the previous session.