|
Listed firms list reasons for last year’s slump
Falling market prices, inventory devaluation and foreign exchange fluctuations are among the main reasons cited by many listed firms for their poor showing in the last quarter in 2008.
Tay Ninh Rubber Joint Stock Co. (TRC) announced its after-tax profit in the fourth quarter last year was VND55 billion (US$3.14 million), a decline of 31.5 percent from the previous quarter.
A fall in international rubber prices at the end of last year, caused by the global economic recession, forced Tay Ninh to cut its average market price from VND50 million ($2,850) per ton in the third quarter to VND30 million in the fourth quarter.
Other listed rubber producers like Dong Phu Rubber Joint Stock Co. (DPR), Hoa Binh Rubber Joint Stock Co. (HRC) and Thong Nhat Rubber Joint Stock Co. (TNC) also blamed their fourth quarter losses on falling international prices.
Meanwhile, steelmaker Hoa Phat Group (HPG) announced a heavy fourth-quarter loss of VND232 billion ($13.3 million) last year. It blamed this on the fact that imported prices were even lower than production costs.
Fertilizer stocks also blamed a sharp decline in ammonia, urea and NPK fertilizers on international markets at the end of last year for their losses. PetroVietnam Fertilizer and Chemical Joint Stock Co. (DPM), Vietnam’s largest fertilizer firm, posted a loss of VND87 billion in the fourth quarter.
Other companies had to provide for inventory devaluations, also caused by falling international prices. Rang Dong Light Source and Vacuum Flask Joint Stock Co. (RAL) said it lost VND8 billion in the last fourth quarter since it used VND16 billion to set up a provisional fund of inventory devaluation.
A similar move cost Ho Chi Minh City Metal Corp. (HMC) VND25 billion as it used more than VND86 billion to provide for inventory devaluation.
The market’s 66 percent nosedive last year saw earnings of listed companies, who invested previous earnings in other shares last year, plunge sharply.
PetroVietnam Finance Joint Stock Corp. (PVF) announced a loss of VND405 billion in the fourth quarter as it set up a provision fund for securities devaluation.
Refrigeration Electrical Engineering Corp. (REE) reported it earned net profits of VND12.5 billion from revenues of VND330 billion in the last quarter of 2008.
But the firm lost VND139 billion overall last year as it had set up provisional funds worth VND72.05 billion for securities devaluation and other investment on the OTC (over the counter) market. The total of such provisions made from the beginning of the year to the fourth quarter was VND467.13 billion, and was the main reason for the loss incurred, REE said on the exchange’s website.
The air-conditioner maker will be placed under scrutiny by the Ho Chi Minh Stock Exchange.
Many listed firms said their earnings took a huge hit because of foreign currency fluctuations last year. Pha Lai Thermal Power (PPC) took a hit as its loan of 36.2 billion Japanese yen soared after the exchange rate rose by 30 percent to VND185 per yen on December 31, 2008.
Dollar fluctuations last year forced Vietnam Petroleum Transport Joint Stock Co. (VIP) to set up a VND30 billion provisional fund to cope with them, given its long-term dollar loans used for building two oil tanks – Petrolimex 06 and Petrolimex 10.
Dau Tu Chung Khoan
|
