Vietnam’s steel major Pomina narrows Q2 loss by 65% as plants remain idle

Pomina, one of Vietnam’s leading steel producers, narrowed its second-quarter net loss by nearly 65% from a year earlier, as its idle plants left the company heavily reliant on processing services for revenue.

According to its Q2 earnings report, Pomina posted a net loss of VND170 billion ($6.47 million) in April-June, compared with VND279.9 billion ($10.65 million) in the same period last year.

During the quarter, gross profit reached VND48.6 billion ($1.85 million), while financial expenses rose 10.4% year-on-year to VND165.3 billion ($6.29 million).

In the first half of 2025, revenue increased 37.1% year-on-year to VND1.49 trillion ($56.7 million), but the net loss totaled VND329.53 billion ($12.54 million), narrowing from VND504.89 billion ($19.2 million) a year earlier.

The company said that its plant operations remain under suspension due to weak market demand, further straining cash flow and asset utilization.

As of June 30, Pomina reported accumulated losses of VND2.87 trillion ($109.17 million), equivalent to 103.6% of its charter capital. Cash stood at VND387.9 billion ($14.7 million) against total debt of VND6.42 trillion ($244.4 million), including VND5.7 trillion ($217 million) in short-term borrowings.

Pomina shares remain under trading restrictions on the Unlisted Public Company Market (UpCoM) due to delays in audited financial statements for 2023-2024.

In June, Pomina signed an MoU with Vietnam Steel Corporation (UpCoM: TVN) to establish Pomina Phu My JSC with a charter capital of VND2.7-2.8 trillion ($103 million), in which Pomina will hold a 35% stake.