Vietnam Airlines warned of delisting

The Ho Chi Minh City Stock Exchange (HoSE) on Thursday continued to warn of the risks of delisting Vietnam Airlines shares if its 2022 audited consolidated financial statement continues to record negative profits or equity.

The carrier recorded its 2022 after-tax profit of negative VND10,453 billion ($445.76 million).

In September, HoSE said that Vietnam Airlines (HVN) shares might be delisted if its 2022 audited consolidated financial statement continues to record negative profits or equity.

At the beginning of June, the HoSE decided to put Vietnam Airlines shares (HVN) under control due to negative equity of VND2,160 billion ($91.74 million).

Besides, the corporation's profit after tax in audited consolidated financial statements in the past two years, 2020-2021, also reported a negative number.

According to Vietnam's Securities Law, shares in a public company should be delisted if it incurs a loss for three consecutive years, or the accumulated losses exceed the charter capital or equity according to the audited financial statement for the year.

In Vietnam Airlines's mid-2022 reviewed financial statement, Deloitte Vietnam had warned the carrier would find it difficult to sustain its operations with its short-term debt exceeding short-term assets by VND36,425 billion ($1.55 billion) and negative equity hitting VND4,900 billion ($209 million).

The ability of Vietnam Airlines to continue operating will depend on financial support from the government, extension of payment deadlines for bank loans, as well as payables to suppliers and lessors, the auditing firm had said.

In 2022, the national airline also sought other sources of income including liquidation of aircraft, aircraft engines, and financial investments. It has sold one aircraft and, the right to buy and lease back one aircraft engine; liquidated its investment in Cambodia Air, and collected more than VND860 billion ($36.65 million).

On the HoSE, the carrier’s HVN shares were priced at VND13,100 ($0.56) at Thursday's close.