Vietnam Ocean Shipping (VOS) did not announce a series of resolutions on buying and selling ships, reporting a loss of nearly 54 billion VND in the first quarter of 2025

Posted on: 26/05/2025

Vietnam Maritime Transport Joint Stock Company (HOSE: VOS) was reminded by the Ho Chi Minh City Stock Exchange (HOSE) for being slow to disclose information related to a series of Board of Directors resolutions on the purchase and sale of large-value ships, in the context that the enterprise reported a loss of nearly VND54 billion in the first quarter of 2025.

Delay in announcing major transactions, violating information disclosure regulations According to the announcement from HOSE, in 2024, VOS failed to announce on time the Board of Directors' resolutions related to 4 ship purchase and sale transactions with a value exceeding 10% of total assets. Specifically: Selling Dai Minh ship (VND 293 billion, 10.78%); Buying Elikon ship (VND 427 billion, 13.15%); Buying Mytras ship (VND 446 billion, 13.72%); Buying Lista ship (VND 428 billion, 13.18%).

HOSE requires VOS to make additional announcements and rectify compliance with regulations on the stock market.

At the 2025 Annual General Meeting of Shareholders, VOS's board of directors said the sale of Dai Minh ship would bring in a profit of VND393 billion. The company is implementing a plan to invest in 1-2 used container ships, with a capacity of about 1,000 Teus, less than 15 years old, with a price not exceeding USD20 million per ship. Net losses are due to a decline in the shipping market and increased depreciation costs.

In the first quarter of 2025, VOS recorded revenue of VND462 billion, down 58% year-on-year. Cost of goods sold was higher than revenue, causing the company to suffer a gross loss of nearly VND35 billion, leading to a loss after tax of nearly VND54 billion. The company's leaders said that the dry cargo market in the first quarter was negatively affected by oversupply, causing Supramax freight rates to drop to only USD2,500 - 3,000/day at times - the lowest level since the COVID-19 pandemic. The small ship segment also faced fierce competition due to a shortage of goods.

In addition, VOS proactively depreciated quickly to create cash flow for investment, significantly affecting short-term profits. If normal depreciation rates were applied, the company said it could have made a profit. Some large ships such as VOS Sky, VOS Unity and VOS Starlight had to temporarily stop operations for periodic maintenance, not recording revenue.