Vinalines' debts drop sharply on back of better performance

January 03, 2018 | 20:00

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State-owned shipping giant Vinalines targets to reduce its debt to around VND300 billion ($13.6 million) when it becomes a joint stock company within this year.

Vinalines overcame global difficulties to close a successful year (Photo: Vinalines' Danang Port)

A senior official of the country’s largest shipping company made this statement when contacted by VIR.

"Vinalines is preparing for the launch of the initial public offering (IPO), which is expected to happen before June 2018," he added.

Vinalines, which ports are in radar of foreign investors, submitted to the Ministry of Transport the equitisation plan for approval at the end of 2017.

In the plan, Vinalines proposes cutting the state holdings to 65 per cent and issuing more shares to increase its charter capital to over VN13.9 trillion ($631.8 million).

The giant also proposed MoT to allow it to sell 30 per cent of its charter capital to a strategic investor, while 4.84 per cent will be auctioned.

At the end of 2016, the debts of the country’s largest shipping company were reduced to $274.4 million thanks to its better performance.

In 2016, Vinalines broke even after suffering losses during 2011-2014. The giant gained a pre-tax profit of VND923 billion ($41.95 million) and VND1.14 trillion ($51.77 million) in port operation and maritime services in 2016, respectively,

Despite consolidated revenue falling by 10 per cent on-year to over VND16 trillion ($727.27 million), driven by a plunge in the global shipping market with the Baltic Dry Index (BDI) dropping to an annual low at 240 points, the volume of goods shipped via Vinalines' ports rose 17 per cent on-year. Container throughput was estimated to climb 22 per cent, compared to the country's growth of 7 per cent in goods shipped and 11 per cent in throughput.

In 2017, Vinalines fulfilled the annual targets for 2017 despite mounting challenges. The shipping business is estimated to report a total volume of 26.2 million tonnes, up 9 per cent on-year, while the volume of cargo shipped via ports reached 81.5 million tonnes, up 4.48 per cent on-year.

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