Companies

Oil and gas companies recover strongly in Q1 from last year’s losses

June 19, 2021 by en.qdnd.vn

In the first quarter financial result, Vietnam National Petroleum Group (Petrolimex, PLX) posted a slight fall of 0.6 percent in net revenue to nearly 38.2 trillion VND (1.6 million USD). However, it was still profitable thanks to a cut in expenses in financial activities and others, and gains in other incomes.

Of which, the company’s profit after tax was nearly 736.2 billion VND in the first quarter after reporting a loss of 2.3 trillion VND in the same period last year.

During the period, Petrolimex’s domestic output rose 4.7 percent year-on-year to 2.27 million m3. Retail sales accounted for 55 – 60 percent of its total sales but contributed around 80 percent of its profit.

SSI Securities Corporation (SSI) said that the company’s production growth will continue until the first half of the second quarter, boosted by the Government’s restriction on illicit petrol, especially in the south.

Similarly, Binh Son Refining and Petrochemical Company Limited (BSR) witnessed its revenue reach 21 trillion VND in the first quarter with a profit of over 1.8 trillion VND, while it reported a loss of 2.33 trillion VND in the same period last year.

The main driving force for the recovery in profit was higher crude prices in the international market and crack spread of gasoline products.

Crack spread is the spread created in commodity markets by purchasing oil futures and offsetting the position by selling petrol and heating oil futures.

PetroVietnam Oil Corporation (PVOIL)’s profit after tax was 190.6 billion VND, after losing 537.7 billion VND in the same period last year.

Notably, Thu Duc Trading & Import Export JSC (TMC) even reported net profit of more than 4 billion VND, nine times higher than that of last year.

Another company witnessing profit rise sharply was Nam Song Hau Trading Investing Petroleum JSC (PSH). The company’s revenue was up 10 percent over last year to more than 1.7 trillion VND, resulting in a profit of 44 billion VND, 2.1 times higher than that of the same period in 2020.

Even though there were still some companies recording declines in profit or even losses during the first quarter, in general, oil and gas companies’ results were quite positive.

With positive oil demand outlook, the oil price is expected to continue to rally. Therefore, there is still more room for oil and gas firms to recover.

SSI forecasted that Brent crude price will trade at an average of 68 USD per barrel in 2021, up 62.6 percent year-on-year, and can even go up to 70 USD in 2022.

According to SSI, developed economies are gradually opening again as they have pushed the vaccination rollout. Businesses activities will also recover quickly when countries continue to ease measures to contain COVID-19.

Brent crude was traded at 74.23 USD per barrel on June 17, and on track to head toward 75 USD.

Source: VNA

More than half of listed companies comply with information disclosure norms

June 18, 2021 by bizhub.vn

The number of listed firms meeting information disclosure requirements in 2011-21. — Source IR Awards organisers

Over 53 per cent of companies listed on the Ha Noi and Ho Chi Minh stock exchanges meet all information disclosure requirements, according to a survey conducted for the 2021 IR Awards.

It surveyed 724 of the 749 companies listed on the bourses.

Of the 389 listed companies that fully complied with the obligations, 30 firms are in the large-cap segment (accounting for 68 per cent of all enterprises in the segment), 111 in the medium-cap segment (63 per cent) and 248 in the small and micro cap segment (49 per cent).

Information disclosure is a mandatory obligation for all listed companies on the country’s two stock exchanges not to speak of their responsibility to shareholders, and investors in general.

The survey was based on regulations prescribed in Circulars 155 and 96 on information disclosure issued by the Ministry of Finance in 2015 and 2020 and other regulations from regulatory agencies.

The annual survey indicates that the percentage of companies meeting disclosure requirements is growing steadily.

This is the first year that the number of companies complying with requirements is over 50 per cent.

This growth is also key to developing the stock markets in a sustainable and transparent.

The IR Award programme is organised by Vietstock and Finance and Life online newspaper FiLi.vn published by the Viet Nam Association of Financial Executives.

The annual awards seek to raise awareness among listed companies of the need to comply with disclosure requirements and to have good relations with investors and shareholders. — VNS

Construction companies report lower profits due to COVID-19

May 12, 2021 by en.vietnamplus.vn

A real estate project constructed by Hoa Binh Construction Group. (Photo: VNA)

Hanoi (VNS/VNA) – Several construction firms have reported a drop in profits in the first quarter of this year due to the COVID-19 pandemic and rising material prices .

Since the beginning of this year, the prices of construction materials on the market have increased sharply amid worries over shortages of materials and rising demand for economic recovery after COVID-19 .

Local brands have increased steel prices by 30-40 percent compared to the fourth quarter of 2020, putting great pressure on the construction industry, as steel currently accounts for 20 percent of inputs for construction work .

Not only steel, the price of cement has also skyrocketed. Since mid-April, many cement manufacturers have adjusted the price of products sold with an increase of 40,000 VND per tonne.

The prices of some other key materials such as sand and gravel are also increasing dramatically.

Facing the double pressure from the COVID-19 pandemic and rises in material prices, a series of contractors have decided to suspend construction progress to wait for market stabilisation.

Coteccons Construction Corporation (CTD)’s revenue fell from 3.5 trillion VND (151.5 million USD) in Q1 last year to 2.56 trillion VND in Q1 this year, down by nearly 28 percent.

Gross profit was 120 billion VND, down by more than 38 percent compared to 2020. The gross profit margin was 4.67 percent, significantly lower than 5.46 percent of the same period last year.

Its pre-tax profit dropped 55 percent to touch 69 billion VND. On the stock market, CTD prices have dropped and are currently being traded at 58,600 VND per share, down more than 27 percent since the beginning of the year.

The pre-tax profit of Hoa Binh Construction and Real Estate Corporation (HBC) in Q1 decreased by 12 billion VND, down 37 percent. In contrast, the gross profit margin improved from 7.7 percent in Q1, 2020 to 8.7 percent in Q1 this year.

This year, in addition to civil real estate construction, HBC has stepped up contracting for energy, industrial and infrastructure projects to increase market share.

Ricons Construction Investment JSC reported its Q1 profit decreased 28 percent to VNĐ31 billion.

Hung Thinh Incons Joint Stock Company (HTN) saw revenue in Q1 increased to 1.16 trillion VND but gross profit fell sharply to 103 billion VND.

In a new report, the Vietnam Steel Association (VSA) indicated that steel prices may continue to rise until the end of the third quarter.

On its side, the Vietnam Association of Construction Contractors (VACC) has issued a petition to the Government to soon direct ministries and branches to examine the cause of the sudden increase in steel prices./.

VNA

VN-Index hits new peak on strong cash flow

June 18, 2021 by english.thesaigontimes.vn

VN-Index hits new peak on strong cash flow

The Saigon Times

An investor watches stock information on the computer. Strong cash flow into bank and steel stocks pushed the VN-Index of the Hochiminh Stock Exchange up today, June 18, to its record of 1,377.77 points – PHOTO: VNA

HCMC – Strong cash flow into bank and steel stocks pushed the VN-Index of the Hochiminh Stock Exchange up today, June 18, to a new record of 1,377.77 points.

At the close, the main index jumped by 17.85 points, or 1.31%, against the day earlier, with 249 winners and 138 losers. Trade volume totaled over 809 million shares worth VND23.7 trillion, up over 5% in both volume and value from the previous session.

Over 58 million shares valued at VND2.8 trillion were traded in block deals.

In the group of bank stocks, HDB, EIB, BID, MBB and TCB were in positive territory, while lender VCB made a strong rise and reported a matching volume of over 3.2 million shares.

Housing developer VHM was among key drivers of the southern bourse, improving 3.2% at the close.

Among the steel stocks, TLH and SMC shot up to their ceiling prices, while NKG, POM and HSG soared by 2.9%-5.2%.

Many small and medium stocks also became cash magnets and moved up at the end, with property group FLC maintaining its growth momentum and closing up 3.1%. FLC became the most actively traded stock on the southern market with 53 million shares traded.

Financial firm FIT was also one of biggest gainers, rising by 2% and reporting a matching volume of 30 million shares.

With 109 gainers and 84 decliners, the HNX-Index of the Hanoi Stock Exchange stood at 318.73 points at the close, inching up a slight 0.52% from the session earlier.

Among the bank stocks, NVB ended at the reference price, while SHB and BAB made a mild rise. Lender SHB also took the lead on the northern bourse by liquidity, with 16.7 million shares changing hands.

Other largecaps such as securities companies SHS and MBS and service company THD finished the day up and contributed to the growth of the index, while many steel stocks were among the best performers.

GE Aviation and Safran launch advanced technology demonstration program for sustainable engines

June 18, 2021 by ven.vn

The companies today also signed an agreement extending the CFM International 50/50 partnership to the year 2050, declaring their intent to lead the way for more sustainable aviation in line with the industry’s commitment to halve CO2 emissions by 2050.

“The relationship between GE and Safran today is the strongest it has ever been,” said John Slattery, President and CEO of GE Aviation. “Together, through the RISE technology demonstration program, we are reinventing the future of flight, bringing an advanced suite of revolutionary technologies to market that will take the next generation of single-aisle aircraft to a new level of fuel efficiency and reduced emissions. We fully embrace the sustainability imperative. As we have always done in the past, we will deliver for the future.”

“Our industry is in the midst of the most challenging times we have ever faced,” said Olivier Andriès, CEO of Safran. “We have to act now to accelerate our efforts to reduce our impact on the environment. Since the early 1970s, breakthrough engine efficiency and reliability have been the hallmark of our historic partnership and our LEAP engine already reduces emissions by 15 percent compared to previous generation engines. Through the extension of our CFM partnership to 2050, we are today reaffirming our commitment to work together as technology leaders to help our industry meet the urgent climate challenges.”2

Technologies matured as part of the RISE Program will serve as the foundation for the next generation CFM engine that could be available by the mid-2030s. The program goals include reducing fuel consumption and CO2 emissions by more than 20 percent compared to today’s most efficient engines, as well as ensuring 100 percent compatibility with alternative energy sources such as Sustainable Aviation Fuels and hydrogen.

Central to the program is state-of-the-art propulsive efficiency for the engine, including developing an open fan architecture. This is a key enabler to achieving significantly improved fuel efficiency while delivering the same speed and cabin experience as current single-aisle aircraft.

The program will also use hybrid electric capability to optimize engine efficiency while enabling electrification of many aircraft systems.

The program is being led by a joint GE/Safran engineering team that has laid out a comprehensive technology roadmap including composite fan blades, heat resistant metal alloys, ceramic matrix composites (CMCs), hybrid electric capability and additive manufacturing. The RISE program includes more than 300 separate component, module and full engine builds. A demonstrator engine is scheduled to begin testing at GE and Safran facilities around the middle of this decade and flight test soon thereafter.

The original 1974 framework agreement creating CFM International as a 50/50 joint venture between the two aircraft engine manufacturers redefined international cooperation and helped change the course of commercial aviation. The partnership was renewed in 2008 for the launch of the LEAP engine program. Today, CFM is the world’s leading supplier of commercial aircraft engines with a product line that serves as the industry benchmark for efficiency, reliability and low overall cost of ownership. More than 35,000 CFM engines have been delivered to more than 600 operators around the globe, accumulating more than one billion flight hours.

Safran is an international high-technology group, operating in the aviation (propulsion, equipment and interiors), defense and space markets. Its core purpose is to contribute to a safer, more sustainable world, where air transport is more environmentally friendly, comfortable and accessible. Safran has a global presence, with 79,000 employees and sales of 16.5 billion euros in 2020, and holds, alone or in partnership, world or regional leadership positions in its core markets. Safran undertakes research and development programs to maintain the environmental priorities of its R&T and Innovation roadmap.

GE Aviation , an operating unit of GE (NYSE: GE), is a world-leading provider of jet engines, components and systems for commercial and military aircraft. GE Aviation has a global service network to support these offerings.

VN-Index shoots to new peak

June 18, 2021 by e.vnexpress.net

The index gradually climbed throughout the day to close with a near 18-point gain, the highest of the past five sessions. It has risen nearly 25 percent this year.

Trading value on the Ho Chi Minh Stock Exchange (HoSE), on which the index is based, rose 5.4 percent to VND23.7 trillion ($1.03 billion). The bourse saw 249 tickers gain and 138 lose.

Foreign investors turned net buyers on the main bourse to the tune of VND646 billion, the highest since April 9. Strongest buying pressure was seen in PDR of Phat Dat Real Estate Development and HSG of steelmaker Hoa Sen Group.

The VN30 basket, comprising the 30 largest capped stocks, saw 22 tickers in the green, led by TCH of real estate company Hoang Huy Investment Financial Services with 5.9 percent.

It was followed by VCB of state-owned lender Vietcombank, up 4.1 percent to a new peak. The ticker contributed most to VN-Index’s gain this session, pushing it up by 4.4 points.

MSN of conglomerate Masan Group rose 3.4 percent. It is still struggling to return to its previous peak on May 26.

Other strong gainers include VHM of real estate giant Vinhomes, up 3.2 percent, and PNJ of Phu Nhuan Jewelry, up 2.6 percent.

On the losing side BVH of insurance company Bao Viet Holdings led with a 1.6 percent drop, followed by GAS of state-owned Petrovietnam Gas, down 1.3 percent.

The HNX-Index for stocks on the Hanoi Stock Exchange, home to mid and small caps, rose 0.52 percent while the UPCoM-Index for the Unlisted Public Companies Market added 0.75 percent.