Vinalines still deep in loss

January 16, 2015 | 16:55

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The state-run Vietnam National Shipping Lines’ (Vinalines) loss in 2014 was expected at VND1.625 trillion ($76.3 million) in 2014 on the revenue of VND19.8 trillion ($930 million), according to newswire VnEconomy.

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The loss is equal to 23 per cent the consolidated amount of 2013, said the group’s general director Le Anh Son at the conference to review Vinalines’s 2014 operations, adding that Vinalines did not meet its own target in the annual revenue because the revenue of subsidiaries from which the firm divested was not counted, and the revenue from Vinalines Logistics’ temporary import for re-export saw a sharp drop.

Except those of subsidiaries Falcon and Vinashinlines which are completing procedures to dissolve, Vinalines currently has 109 ships with the total capacity of 2.28 million DWT, equal to 31 per cent that of the whole country’s fleet.

In 2014, Vinalines carried out IPOs at seven subsidiaries. One subsidiary is going public in January 2015. Two more have announced their valuations to prepare for their IPOs.

According to a government’s report released in November last year on the operations of state-owned entreprises, Vinalines topped in cumulated loss with VND6.96 trillion ($326.7 million). The parent company Vinalines, which owed VND11.1 trillion ($521 million) as of June 2014, VND2.3 trillion ($108 million) of which to foreign creditors, reportedly received approval from several creditors to convert its debts into capital holdings in the company.

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