Firms report big losses due to Covid-19 lockdown

Many firms in the aviation, oil and agriculture sectors have reported big losses in the first three months of 2020.

Many firms in the aviation, oil and agriculture sectors have reported big losses in the first three months of 2020.

  

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The aviation industry was the hardest-hit. Vietnam Airlines first-quarter financial report showed that the net revenue in the first three months dropped by 26% compared to the same period last year, to VND18.8trn (USD798m).

Cost of goods sold which includes the cost of labour, materials, and manufacturing overhead alone was already over VND19.4trn (USD824m). Post-tax losses were over VND2.5trn. The mother company incurred a VND2.6trn of net losses. The post-tax profit in the first quarter dropped sharply because of big losses by the mother company and sub-companies that provide air services like Skypec and Viags.

FLC Group, the owner of Bamboo Airways, said they also had huge losses as the pandemic badly affected the tourism industry and the resorts and real estate market. The group suffered a pre-tax loss of VND1.8trn (USD76m) in the first quarter. The mother company suffered a net loss of VND1.2trn. This is the first quarterly loss that the group has suffered in eight years.

Report from Danang Airports Services Joint Stock Company shows that the company's net revenue dropped by 19% to VND44bn (USD1.8m). The losses were not as huge but this is the first time the company has reported losses since it was listed.

Vietnam oil company and the operator of Dung Quat Refinery, Binh Son Refining and Petrochemical Joint Stock Company the first quarter last year they earned nearly VND3trn (USD127m) in profit while this year suffered a post-tax loss of VND2.3trn.

PV Oil reported a VND537trn (USD22.8bn) in net losses and an accumulated loss of VND1.2 by the end of the first quarter. Petrolimex hasn't reported yet but according to the Committee for the Management of State Capital at Enterprises, it has suffered VND572bn in losses.

Major agriculture company the Loc Troi Group reported a nearly VND37bn (USD1.6m) in losses in the first quarter. This is the first quarter they have reported losses since 2007. The revenue also dropped by 53% to VND733bn.

Viet Tien Textile Company said they were also affected when Covid-19 reached China, South Korea and the US and EU which are their major export markets. Many contracts were cancelled and demand in the domestic market also dropped. The net revenue in the first quarter was VND1.5trn. Their post-tax losses were nearly VND21bn (USD892,000).