Vosco lost 53.85 billion VND in the first quarter of 2025 when doing business below cost price

In the first quarter of 2025, Vosco recorded revenue of VND 462.11 billion, down 57.9% over the same period, after-tax profit recorded a loss of VND 53.85 billion compared to the same period of profit of VND 74.52 billion, a decrease of VND 128.37 billion.

Notably, in the first quarter of 2025, Vosco operated below cost price, resulting in a gross profit of negative VND 34.76 billion compared to the same period of positive VND 103.97 billion, a decrease of VND 128.73 billion.

In addition, also during the period, financial revenue decreased slightly by 8.6%, equivalent to a decrease of VND 1.36 billion, to VND 14.4 billion; financial expenses increased by 386.8%, equivalent to an increase of VND 4.99 billion, to VND 6.28 billion; sales and business management expenses decreased by 26.8%, equivalent to a decrease of VND 9.84 billion, to VND 26.91 billion, and other activities fluctuated insignificantly.

Thus, in the first quarter of 2025, with business operations below cost price and pressure from financial, sales and business management costs, Vosco recorded a loss of up to VND 53.85 billion.

Explaining the business losses in the first quarter of 2025, Vosco said that in the first quarter of 2025, the dry cargo market was very gloomy, starting from a very low base at the end of 2024 and plummeting to the bottom around the Lunar New Year, which was recorded as worse than the early stages of Covid. The serious imbalance between excess ship supply and scarce cargo demand pushed the charter rate of Supramax vessels down to about 4,000-5,000 USD/day, even some trips were only 2,500-3,000 USD/day, while the Small Handy segment also faced fierce competition with very little cargo.

In addition, the product tanker market in the first quarter of 2025 has many complicated and unstable developments, with some quite gloomy times such as during the holidays or the end of March. Therefore, the revenue of the dry tanker fleet and oil tankers is affected.

In addition, the profit after tax in the first quarter of 2025 was lower than the same period due to the decline in the dry cargo market and many unusual developments in the oil tanker market. In particular, the Company continues to depreciate the fleet quickly to have more cash flow to serve the investment in fleet development. If the normal depreciation rate is deducted, the Company's business results in the quarter will be profitable; Vosco has many large tonnage ships going on drydock/periodic repairs, without revenue and the Company still has to bear the cost of ship days such as Vosco Sky, Vosco Unity and Vosco Starlight.

In 2025, Vosco plans to have revenue of 6,000 billion VND, a slight decrease of 0.8% over the same period, and pre-tax profit of 376 billion VND, a decrease of 10% over the same period.

Thus, ending the first quarter of 2025 with a pre-tax profit of VND 53.96 billion, Vosco is still far from its plan to make a profit in 2025.

In terms of asset size, as of March 31, 2025, Vosco's total assets increased by 6.3% compared to the beginning of the year, equivalent to an increase of VND 181.7 billion, to VND 3,072.9 billion. Of which, the main assets recorded VND 1,186.3 billion in cash and short-term financial investments, accounting for 38.6% of total assets; fixed assets recorded VND 803.4 billion, accounting for 26.1% of total assets; short-term receivables recorded VND 503.9 billion, accounting for 16.4% of total assets and other items.

In addition, in terms of capital, while at the beginning of the year no debt was used, by the end of the first quarter a total of VND 241 billion in debt had been used, equal to 12.5% ​​of total equity. Of which, short-term debt was VND 26.7 billion and long-term debt was VND 214.3 billion.

As of December 31, 2024, Vosco manages and operates a fleet of 13 vessels with a total tonnage of 421,699 DWT, including 7 dry cargo and bulk cargo ships; 4 product oil and chemical ships and 2 container ships. Of these, 2 product oil ships Dai An, Dai Phu and 2 oil/chemical ships Dai Thanh, Dai Hung are leased by the Company for management and operation under a bareboat charter for a period of 3 years. In 2024, Vosco sold the product oil ship Dai Minh and delivered the ship to the buyer at the end of May 2024.

Regarding stock performance, recently when the market decreased, VOS shares also adjusted down. From April 2 to May 6, VOS shares decreased by 8.1% from VND 14,900 to VND 13,700/share.

Duy Bac