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Vinalines releases 1H results

Released at: 14:20, 24/07/2015

Vinalines releases 1H results

Embattled shipping company records loss of $9.2 million but still targets profit for the year as a whole.

by Hoai An

Vietnam National Shipping Lines (Vinalines) has released a report summarizing its business performance in the first half of 2015.

In the first half it recorded a loss of VND197 billion ($9.2 million). Total revenue was estimated at VND9.3 trillion ($435.2 million), accounting for 51 per cent of the annual plan. It divested from eleven businesses, to the tune of nearly VND1.2 trillion ($55.8 million).

It continued to address liabilities worth VND1.4 trillion ($65.1 million), contributing to reducing its debt after restructuring to VND3.6 trillion ($169 million).

It also accelerated negotiations to resolve debts with VietinBank, ACB, and VP Bank, where progress was made.

Vinalines has also completed the equitization of fiv subsidiaries. As at June 30 it had basically completed the equitization of 12 members under the restructuring plan approved by the Prime Minister.

It has also asked that bankruptcy proceedings begin in three subsidiaries including Vinashin, Falcon, and the Ca Mau Shipbuilding Company.

Vinalines expects total revenue in 2015 of VND18.5 trillion ($860.5 million) with a profit of VND197 billion ($9.1 million).

With the Prime Minister having approved its equitization plan it will conduct an IPO in the third quarter and prepare to transform into a joint stock company.

Vinalines will also try to complete procedures to reduce its stake in certain ports, including Hai Phong, Da Nang, Can Tho and Saigon, to create financial sources for repaying its debts.

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