A Vietnam Airlines' aircraft taking off. The carrier is the worst performer in business operations in Q1 due to COVID-19. Photo baogiaothong.vn

HÀ NỘI — Despite Vietnamese companies’ total net profit growing 81 per cent year-on-year in the first quarter, many still posted big losses.

The national flag carrier Vietnam Airlines (HVN) reported the biggest loss of nearly VNĐ5 trillion in the first three months of 2021. This amount increased over 90 per cent against the same period last year. 

The COVID-19 pandemic was the main reason severely affecting the carrier’s business operations.

As of March 31, Vietnam Airlines recorded accumulated losses of over VNĐ14.2 trillion, exceeding its charter capital and pulling the company's equity from more than VNĐ6 trillion to over VNĐ1 trillion. 

Under the Law on Securities, if the enterprise has accumulated losses surpassing the charter capital in the latest audited financial report before the review time, it will be forced to delist. Therefore Vietnam Airlines shares listed on the Hồ Chí Minh Stock Exchange (HoSE) may be cancelled if it doesn’t increase its charter capital by VNĐ8 trillion as planned.

The carrier also has to pay debts of nearly VNĐ60 trillion. Of which, VNĐ12.69 trillion is short-term liabilities and VNĐ21.64 trillion is long-term liabilities, leading to the debt-to-equity ratio of 57.7, which is an extremely high risk level. However, the company's cash in its current account is VNĐ2.077 trillion.

Viettel Global is another company posting big losses in the first quarter. Even though its net revenue rose 8 per cent year-on-year to over VNĐ4.6 trillion, the company still lost VNĐ422 billion. 

The main driving force in the last quarter came from African markets with revenue jumping by nearly 18.5 per cent to VNĐ1.75 trillion while profit reached nearly VNĐ300 billion, which is the highest among its three main markets. At the moment, its main source of revenue in the African market come from Tanzania, Mozambique and Burundi.

However, Viettel faced a force majeure event related to political uncertainties in Myanmar. The crisis has had a great impact on foreign investors’ business results in the market, including Viettel's affiliate Mytel.

Masan High-Tech Materials (MSR), Habac Nitrogenous Fertilizer & Chemicals (DHB) and PetroVietnam Drilling & Well Services Corporation (PVD) also reported losses of hundreds of billions of đồng.

Of which, Masan High-Tech Materials lost nearly VNĐ280.8 billion in profit after tax despite a gain of 173 per cent year-on-year in net revenue to nearly VNĐ3 trillion, mostly from selling tungsten. 

The losses were due to higher cost of goods sold and other expenses. 

In the first quarter of 2021, Habac Nitrogenous Fertilizer & Chemicals saw a loss of over VNĐ249 billion, resulting in an accumulated loss of more than VNĐ5 trillion. 

In 2020, the company lost over VNĐ1.46 trillion, marking sixth straight annual loss. 

PetroVietnam Drilling & Well Services Corporation witnessed a loss of VNĐ109.9 billion in profit after tax during the period due to the business of selling below cost. Last year, the firm posted outstanding performance with profit after tax of VNĐ186 billion. 

The gas and oil industry still faces risks as the recovery of energy demand is slower due to COVID-19.

Most of these companies' shares declined on Thursday. Of which HVN, MSR, PVD all dropped more than 1 per cent, while VGI and DHB ended flat. VNS