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CII leads as top earning building firm

Update: November, 28/2015 - 10:07
HCM City Infrastructure Development Co defeated Refrigeration Electrical Engineering Corp to become the biggest earning construction company this year, for which REE has claimed for the past four years. — Photo bizlive.vn
HA NOI  (VNS) — The nine-month business results of construction companies saw substantial improvement over the same period of last year with more than 83 per cent of these firms posting profits.

As of November 26, 106 of the total 107 listed construction companies have reported the third-quarter earnings, of which only 17 businesses incurred losses, according to the data available on the financial website vietstock.vn.

Total revenues of the reported companies touched nearly VND62.45 trillion (US$2.8 billion) in the first nine months of this year, up 17 per cent year-on-year. Meanwhile, their combined profits also increased 63 per cent during the same period to reach VND3 trillion ($134 million).

Fifty-one companies witnessed higher profits while 29 firms saw lower earnings.

Top 10 earning businesses continued to be the largest companies by market capitalisation including HCM City Infrastructure Development Co (CII), Refrigeration Electrical Engineering Corp (REE), Cotec Construction Co (CTD), Vietnam Construction and Import Export Co (VCG), Petroleum Equipment Assembly & Metal Structure Co (PXS) and Vietnam Electricity Construction Co (VNE).

HCM City Infrastructure Development Co defeated Refrigeration Electrical Engineering Corp to become the biggest earning construction company this year, for which REE has claimed for the past four years.

HCM City Infrastructure Development reported a total profit of over VND691 billion ($30.8 million) in the first nine months, a rise of 280 per cent over the same period of last year and surpassing its yearly target of 50 per cent for the whole year.

Meanwhile, Refrigeration Electrical Engineering saw its earnings down 13.2 per cent during the period, touching nearly VND591 billion ($26.4 million). The company attributed such a decline to higher interest expenses which increased 83 per cent year-on-year and reduced profits that it earned from affiliated companies like Pha Lai Thermal Power Co and Ba Ha River Hydropower Co.

However, REE will likely reclaim its biggest earning business by the end of this year since CII on November 16 said that it could incur a loss in the last quarter after having to set aside a financial provision of about VND110 billion ($4.9 million) due to changes in the construction schedule and toll policy of some government's infrastructure projects it is building and delays of bond conversion worth $25 million held by Goldman Sachs.

Cotec Construction Co claimed the third position with a profit of nearly VND414 billion ($18.5 million), up 77 per cent year-on-year.

Another business that also had nine-month earnings of over VND100 billion was Vietnam Construction and Import Export Co (VCG) with a profit of over VND264 billion ($11.8 million), a yearly increase of 10.4 per cent.

On the dark side, six companies posted losses of over VND10 billion ($446,400), of which Construction Co No 5 (VC5) is leading with a loss of over VND50 billion ($2.2 million). — VNS

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