Steel giant Hoa Phat’s post-tax profit drops 76% in 2022

Hoa Phat Group, the largest Vietnamese steelmaker, recorded a post-tax profit of VND8.4 trillion ($358 million) in 2022, down 76% year-on-year.

For Q4/2022, it reported a post-tax loss of VND2 trillion ($85.29 million), worse than the Q3/2022 loss of VND1.79 trillion ($76.33 million), according to its latest report.

For the whole 2022, the group, listed on the Ho Chi Minh Stock Exchange (HoSE) as HPG, posted a revenue of VND142 trillion ($6.06 billion), falling 5% year-on-year, after recording a Q4 revenue of VND26 trillion ($1.11 billion), down 42%.

HPG, with a capacity of 8.5 million tons a year, supplied the market with 7.2 million tons of steel in 2022, down 7% year-on-year. That included 750,000 tons of steel pipes, 328,000 tons of steel sheet products, 4.2 million tons of construction steel, and 2.6 million tons of hot-rolled coil (HRC) steel.

The corporation added it had successfully manufactured high-quality steel products, including rolled steel for automobiles, screws, and coiled rebars. Its container factory is set to launch products later this quarter.

The firm paid nearly VND11.2 trillion ($477.61 million) to the state budget, with subsidiaries of Hoa Phat Dung Quat Steel, Hoa Phat Hai Duong Steel, and Hoa Phat Steel Pipe accounting for the biggest portions.

Currently, HPG is operating in and contributing to the state budget of 28 provinces and cities across the country.

Last year, the steelmaker initiated the operation of a home appliance factory worth VND1 trillion ($42 million) in Ha Nam province, along with posting leading figures for poultry egg supplies, and investment in the 5.6 million-ton HRC Hoa Phat Dung Quat 2 Integrated Steel Complex in Quang Ngai province.

On the HoSE, HPG closed the last session of the lunar year on Thursday at VND21,150 (0.9) per share.