Coal miners see improved results in Q3

October, 25/2021 - 08:05

Many coal enterprises, which are subsidiaries of Vinacomin, have announced positive business results compared to the results of the third quarter of 2021.

Trucks carrying coal at a mining site of Cọc Sáu Coal. — Photo

HÀ NỘI — The COVID-19 pandemic has hit the country coal industry hard as production activities were disrupted due to short of labour source, interruption in the supply of imported materials, and difficulties in product consumption. However it still witnessed strong growth.

In 2021, Vinacomin’s revenue is estimated at VNĐ128.6 trillion (US$5.6 billion), reaching 104 per cent of its whole year plan. The company’s coal output is expected to reach 39 million tonnes, equivalent to 101 per cent of the production plan, with more than 40 million tonnes of finished coal. The consumption volume is estimated at more than 44 million tonnes, reaching 105 per cent of the plan.

The company said that the success was attributed to the effective, timely, flexible, and practical policies of the local Government to prevent and control the spread of COVID-19.

In the third quarter of this year, many coal enterprises, which are subsidiaries of Vinacomin (TKV), have announced positive business results compared to that of the same period last year.

Vàng Danh Coal JSC (TVD) has just released its financial report for the third quarter of 2021 with net revenue of more than VNĐ1.31 trillion, up 45.1 per cent year-on-year. During the period, its profit from financial activities rose 16.6 per cent, while financial expenses fell more than 22.1 per cent over last year. 

Sales expenses and general and administrative expenses posted gains of 33.2 per cent and 6.4 per cent, respectively. Therefore, Vinacomin recorded profit after tax of VNĐ15.4 billion, up 19.4 per cent compared to the same period last year. 

As of September 30, its revenue rose 11.42 per cent over last year to nearly VNĐ3.9 trillion. However, profit after tax dropped 16.5 per cent to VNĐ36.7 billion due to higher cost of goods sold and general and administrative expenses.

Another subsidiary of Vinacomin, Hà Lâm Coal JSC (HLC) also posted revenue of VNĐ900.78 billion, with profit after tax reaching VNĐ10.03 billion, more than 10 times higher than that of the third quarter of 2020, which was just over VNĐ971 million.

The company said that the strong growth was thanks to the successful completion of the coal consumption plan assigned by Vinacomin. 

In the first nine months of 2021, its revenue was VNĐ2.4 trillion, while the profit after tax reached VNĐ32.25 billion.

Similarly, Đèo Nai Coal JSC (TDN) said in its third-quarter financial result that its net revenue was mostly unchanged compared to last year at VNĐ766.2 billion. But the company recorded net profit of VNĐ17.3 billion, while losing VNĐ6.3 billion last year.  

In the first nine months, Đèo Nai’s profit after tax jumped over 101.1 per cent year-on-year to VNĐ38.47 billion.

It explained that falls in expenses were the main driver for the strong gain in profits during the period. 

In the financial statement, Mông Dương Coal JSC (MDC) said that its net revenue reached VNĐ584 billion in the third quarter, up 4.32 per cent over the year, while the profit after tax inched 9.62 per cent higher to VNĐ5.7 billion. 

According to Mông Dương, the positive business results were due to increases in revenue from sales and services. 

Hà Tu Coal JSC of Vinacomin (THT) also reported outstanding business results in the third quarter of 2021. Of which its net revenue climbed nearly 120 per cent over last year to VNĐ1.03 trillion, with profit after tax hitting VNĐ2.1 billion, 3.5 times higher than that of the same period last year.  

The company explained the strong growth was contributed by a cut in operating costs and higher output. 

Meanwhile, Cọc Sáu Coal JSC (TC6) saw a sharp drop in net revenue in the third quarter, down 55.24 per cent year-on-year to VNĐ292.4 billion. However the company posted net profit of VNĐ409.8 million in the third quarter after witnessing losses of VNĐ16.3 billion. 

Bullish coal stocks

On the stock market, these stocks are traded on the Hà Nội Stock Exchange (HoSE). And recently, they have seen strong rallies, helping many investors gain twice. 

It is believed that coal stocks benefit from surging energy prices in the international market, including coal and natural gas prices, and crude prices, boosted by a supply crunch and demand recovery.

Since June, the global coal price has skyrocketed from $90 a tonne to approximately $240 a tonne, about 2.6 times higher in just three months. The strong gain was driven by the tension between China and Australia, leading to coal import restrictions. Production disruption afftected by COVID-19 in many countries, higher freight rates, shortage of labour and stricter control in polluntion in China also boosted the coal price.

After the uptrend period lasting from the end of August to the beginning of October, these stocks simultaneously corrected. However, in the last trading session, these stocks became “hot” once again, with all of them hitting the maximum daily gain of 10 per cent. 

For the year, these stocks had risen at least 100 per cent. — VNS