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Vinalines suffers $66m loss in H1

Update: July, 23/2012 - 10:33

HA NOI — Vinalines suffered a loss of VND1.4 trillion (US$66.6 million) in the first half of this year, three times higher than that of whole of last year, due to prolonged decreasing sea transport market.

Vinalines or Viet Nam National Shipping Lines announced the loss in a conference held in Ha Noi last week to review its first-half business.

The total output of freight transportation in the period reached 15.3 million tonnes, down 15 per cent on the same period last year.

Its total revenue was VND11.6 trillion ($552.3 million), representing a 3 per cent year-on-year fall.

Vinalines said half the loss, amounting to VND700 billion ($33.3 million), was caused by two former Viet Nam Shipbuilding Industry Group (Vinashin) subsidiaries, including Vinashinlines and BISCO companies.

In addition, the losses at two leading Vinalines companies – Falcon Shipping Co (Falcon) and Viet Nam Ocean Shipping Joint Stock Company (VOSCO) – were VND267 billion ($12.7 million) and VND103 billion ($4.9 million) respectively.

It added that the losses were also because of falling demand and freight charges which had been in a downtrend for a long time. It had had to deal with internal difficulties in the same time, affecting to its business operation.

Vinalines said it targeted to retain operation in the second half of the year, gradually reducing losses.

It had restructured vessels, sold ineffective ones and focused on completing those that were unfinished.

It expected that the total output of freight transportation this year would be 38 million tonnes with a revenue of VND26.2 trillion ($1.24 billion).

Vinalines invested VND672 billion ($32 million), or 10.37 per cent of its charter capital, into non-core areas in 2010, according to a State budget audit for last year.

As of the end of last year Vinalines had total assets valued at VND55.8 trillion ($2.6 billion) and equity valued at VND9.4 trillion ($447 million).

National Assembly Economic Committee vice chairman Nguyen Duc Kien said Vinalines' losses should be put in the context of global economic conditions as several big ship firms, such as Maersk, Hanjin and NYK, had also suffered losses since 2009. — VNS

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