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PVX prepares to delist from HNX due to weak performance
Tremendous prolonged losses forced PetroVietnam Construction JSC (HNX: PVX) to delist from the Hanoi Stock Exchange.
PVX has reported losses in three consecutive years 2017, 2018, and 2019
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PVX has just announced its financial report for the first quarter of 2020. Accordingly, its net revenue reached VND265 billion ($11.5 million), down 57 per cent on-year. However, due to the plunge in cost price, PVX recorded a gross profit of nearly VND2 billion (86,970).
The company’s turnover included VND2 billion ($86,970) from financial activities, equaling one-third of the same period last year. Additionally, its financial costs in the period were VND14.4 billion ($626,090). In the same period last year, PVX's financial costs amounted to VND31 billion ($1.35 million), resulting in net losses of VND40 billion ($1.74 million) and negative after-tax profit of VND28.5 billion ($1.24 million).
Currently, PVX has reported losses for three consecutive years (2017, 2018, and 2019), resulting in the firm being delisted from HNX. In a document sent to HNX to explain the weak performance, PVX said that many projects have been interrupted and difficulties in the real estate market are the main reasons behind its tremendous losses for years. Furthermore, difficulties in mobilising cash has also brought about a shortage in floating capital to liquidate due debts.
In 2020, the company set the revenue target of VND1.7 trillion ($73.9 million) but refused to reveal the specific profit targets. It only emphasised covering the losses as much as possible.
Regarding the plans to restructure the company, PVX will keep divesting from real estate projects to focus on construction projects.
VIR
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