Steelmaker Tisco posts fourth consecutive quarter loss

The Thai Nguyen Iron and Steel JSC (Tisco) has reported its fourth consecutive quarter after-tax loss of VND99 billion ($4.2 million) in Q2/2023.

Tisco made an after-tax profit of over VND4 billion ($169,200) in the same period last year.

The steelmaker’s Q2/2023 revenue dropped 39% year-on-year to VND1.95 trillion ($82.3 million), according to its latest consolidated financial report.

In the first six months of this year, Tisco, listed on the unlisted public company market UPCoM as TIS, posted net revenues of VND4.39 trillion ($185.78 million), down 37% year-on-year and after-tax losses of VND118 billion ($4.99 million) against a profit of VND33 billion ($1.4 million) in the same period last year.

At the end of Q2/2023, Tisco's total assets value stood at VND10.62 trillion ($449.14 million), up 4.3% compared to the beginning of this year.

As of June 30, its inventory was over VND1.7 trillion ($71.9 million) and the company had made a devaluation provision of VND11.4 billion ($482,200).

Tisco, established in 1959, is the first steelmaker in Vietnam with a closed integrated production line from iron ore mining to iron smelting, steel smelting and steel rolling.

Currently, the company's production capacity of rolled steel is 1 million tons/year and it earns annual revenues of over VND1 trillion ($465.3 million). Its products are distributed across all provinces and cities in the country as well as several foreign markets including Canada, Singapore, Indonesia, Laos and Cambodia.

Tisco has set revenue and pre-tax profit targets of VND15.83 trillion ($669.44 million) and nearly VND39 billion ($1.65 million) for 2023, respectively.

The company said the targets have been set with the recognition that the world situation was still complicated with political tensions affecting raw material prices and supply in unpredictable ways.

In 2022, Tisco recorded revenues of VND11.7 trillion ($494.6 million), down 9%, and a loss of VND9.46 billion ($400,000), while it made after-tax profits of VND122.41 billion ($5.2 million) in the same period of 2021.

On the Unlisted Public Company Market (UPCoM ), TIS closed Monday’s session at VND5,300 ($0.22) per share.