In the third quarter, Việt Nam Sea Shipping Joint Stock Company (VOS) reported a slight increase in net revenue of nearly VNĐ8 billion compared to the same period last year, reaching VNĐ710 billion. Photo VOS

HÀ NỘI 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.

Việt Nam 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 VNĐ8 billion (nearly $322,000) compared to the same period last year, reaching VNĐ710 billion ($29.4 million). However, despite the revenue growth, the surge in the cost of goods, which rose by nearly 160 per cent to VNĐ715 billion, resulted in VOS incurring a loss of nearly VNĐ25 billion. This is in stark contrast to the profit of nearly VNĐ152 billion recorded during the same period last year. Consequently, 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 VNĐ48 billion, a significant decline of nearly 10 times compared to the same period last year.

Cái Lân Port Investment Joint Stock Company (CPI) faced a decline in net revenue, reaching only VNĐ8 billion, down by 46 per cent compared to the same period last year. The company's gross profit plummeted by 91 per cent during this period, amounting to slightly over VNĐ250 million. Additionally, financial revenue experienced a sharp decrease of 92 per cent to VNĐ3 billion, while business management costs rose by over VNĐ1.2 billion. Consequently, Cái Lân Port reported an after-tax loss of VNĐ770 million in the third quarter of 2023, compared to a profit of nearly VNĐ3 billion in the same period last year.

In the first nine months, Cái Lân Port's revenue amounted to VNĐ23 billion, down by 49 per cent compared to the same period last year. The company incurred an after-tax loss of nearly VNĐ1.7 billion during this period, while it had a profit of VNĐ5.5 billion in the corresponding period last year. As of the end of the third quarter, Cái Lân Port's accumulated loss exceeded VNĐ404 billion.

Similarly, Phước 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 VNĐ1.7 billion. In comparison, it incurred a loss of VNĐ4.6 billion during the same period last year.

In the first nine months of 2023, Phước An Port recorded a loss of nearly VNĐ5 billion, whereas it reported a loss of VNĐ6 billion 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.

Cần Thơ Port Joint Stock Company (CCT) experienced a net revenue decline of over 4 per cent in the same period, amounting to VNĐ34 billion. Simultaneously, the cost price rose by nearly 9 per cent to over VNĐ28 billion, resulting in a 31 per cent decrease in gross profit to VNĐ6 billion. Net profit from business activities also declined by more than half in the same period, reaching VNĐ675 million.

However, with the inclusion of income from the liquidation of fixed assets and after deducting expenses, the company reported a profit after tax of VNĐ3.3 billion, nearly 2.5 times higher than the same period last year.

In the accumulated nine months, Cần Thơ Port's revenue reached VNĐ108 billion, reflecting a 14 per cent increase compared to the same period last year, and the profit after tax surged by 20 times to VNĐ4.5 billion.

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 US$94.6 billion, displaying a 10.3 per cent increase compared to the second quarter of 2023. However, it still represents a 1.2 per cent decline compared to the same period last year. Import turnover is estimated at $86 billion, which is a 4.5 per cent decrease compared to the same period last year but an 11 per cent 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 per cent 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 Việt Nam and the US.

The US remains Việt Nam’s largest export market, with turnover to the US increasing by 13.6 per cent in 2022. In the first nine months of 2023, Việt Nam recorded a trade surplus of $60.7 billion with the US.

Mirae Asset Securities Joint Stock Company (Việt Nam) predicts that Việt Nam’s seaport and logistics industry will be among the sectors that benefit the most from the improved Việt Nam - US relations, considering the US as the largest consumer of Vietnamese goods. VNS