Enterprises in the shipping industry reported disappointing third-quarter business results with several companies facing losses.
The lacklustre corporate profits can be attributed, in part, to the recovery of exports and imports in the third quarter of this year, which although improved, still declined in comparison to the same period last year.
Vietnam Sea Shipping Joint Stock Company (VOS) recently disclosed its business results with a substantial loss, reflecting the challenging conditions prevailing in the shipping market.
In the third quarter, VOS’s net revenue experienced a slight increase of nearly 8 billion VND (nearly 322,000 USD) compared to the same period last year, reaching 710 billion VND (29.4 million USD).
However, despite the revenue growth, the surge in the cost of goods, which rose by nearly 160% to VNÐ715 billion, resulted in VOS incurring a loss of nearly 25 billion VND. This is in stark contrast to the profit of nearly 152 billion VND recorded during the same period last year. Conse
quently, this marks the first quarter where the company reported a loss since the second quarter of 2021.
In the first nine months of 2023, VOS’s accumulated profit stood at approximately 48 billion VND, a significant decline of nearly 10 times compared to the same period last year.
Cai Lan Port Investment Joint Stock Company (CPI) faced a decline in net revenue, reaching only 8 billion VND, down by 46% compared to the same period last year. The company’s gross profit plummeted by 91% during this period, amounting to slightly over 250 million VND. Additionally, financial revenue experienced a sharp decrease of 92% to 3 billion VND, while business management costs rose by over 1.2 billion VND. Consequently, Cai Lan Port reported an after-tax loss of 770 million VND in the third quarter of 2023, compared to a profit of nearly 3 billion VND in the same period last year.
In the first nine months, Cai Lan Port’s revenue amounted to 23 billion VND, down by 49% compared to the same period last year. The company i
ncurred an after-tax loss of nearly 1.7 billion VND during this period, while it had a profit of 5.5 billion VND in the corresponding period last year. As of the end of the third quarter, Cai Lan Port’s accumulated loss exceeded 404 billion VND.
Similarly, Phuoc An Port Investment and Exploitation Petroleum Joint Stock Company (PAP) also reported a loss in the third quarter. With no recorded revenue during this period, the company solely incurred business management costs, resulting in an after-tax loss of nearly 1.7 billion VND. In comparison, it incurred a loss of 4.6 billion VND during the same period last year.
In the first nine months of 2023, Phu?c An Port recorded a loss of nearly 5 billion VND, whereas it reported a loss of 6 billion VND in the corresponding period last year.
Despite a decrease in net revenue, certain businesses have managed to achieve profit growth by capitalising on revenue from other sources.
Can Tho Port Joint Stock Company (CCT) experienced a net revenue decline of over 4% in
the same period, amounting to 34 billion VND. Simultaneously, the cost price rose by nearly 9% to over 28 billion VND, resulting in a 31% decrease in gross profit to 6 billion VND. Net profit from business activities also declined by more than half in the same period, reaching 675 million VND.
However, with the inclusion of income from the liquidation of fixed assets and after deducting expenses, the company reported a profit after tax of 3.3 billion VND, nearly 2.5 times higher than the same period last year.
In the accumulated nine months, Can Tho Port’s revenue reached 108 billion VND, reflecting a 14% increase compared to the same period last year, and the profit after tax surged by 20 times to 4.5 billion VND.
Among the various reasons hindering positive profits in the shipping industry, a significant factor is the decline in import and export activities compared to the same period last year, despite a recovery taking place.
According to the General Department of Customs, export turnover in the third
quarter of 2023 is estimated to reach 94.6 billion USD, displaying a 10.3% increase compared to the second quarter of 2023. However, it still represents a 1.2% decline compared to the same period last year. Import turnover is estimated at 86 billion USD, which is a 4.5% decrease compared to the same period last year but an 11% increase compared to the second quarter of 2023.
Significantly, after four consecutive months of growth, exports exhibited signs of decline in September, dropping by 4.1% compared to August.
Freight prices are currently rebounding, according to Yuanta Vietnam Securities Limited Company (YSVN).
Analysts also assert that the shipping, seaports and logistics sectors are poised to benefit from the recently upgraded comprehensive strategic partnership between Vietnam and the US.
The US remains Vietnam’s largest export market, with turnover to the US increasing by 13.6% in 2022. In the first nine months of 2023, Vietnam recorded a trade surplus of 60.7 billion USD with the US.
Mirae Asse
t Securities Joint Stock Company (Vietnam) predicts that Vietnam’s seaport and logistics industry will be among the sectors that benefit the most from the improved Vietnam – US relations, considering the US as the largest consumer of Vietnamese goods./.
Source: Vietnam News Agency