BOT companies post mixed results in Q3 due to COVID-19

Friday, Nov 12, 2021 08:46

An electric toll collection station of Tasco. — Photo

The development of the COVID-19 pandemic in the past two years has caused many BOT companies to witness decreases in revenue, and the third quarter of this year is no exception.

According to the latest report on third quarter business results, many BOT companies’ results were quite gloomy, like Tasco JSC (HUT) posting a loss of VND72.8 billion (US$3.2 million) during the period. This marked the sixth quarterly loss for the company.

Tasco is considered a BOT tycoon, with projects nationwide. However, the company recently faced many challenges, mainly due to the impact of the BOT investment form, including policy inadequacies and the pandemic.

Similarly, Ho Chi Minh City Technical Infrastructure Investment JSC (CII) recorded poor performance in the third quarter with consolidated net revenue of VND258.7 billion, down 85.8 per cent year-on-year. Its profit after tax fell 87 per cent to VND10.6 billion.

CII operates mainly in southern Viet Nam. The suspension of toll collection for traffic projects and the halting of infrastructure construction and real estate projects at the request of State agencies greatly affected the company’s business results in the third quarter.

IDICO Infrastructure Development Investment JSC (HTI) also recorded a loss during the period as the COVID-19 pandemic resulted in the temporary suspension of toll collection. Accordingly, its net revenue dropped sharply by 80 per cent to VND18.8 billion.

Although IDICO actively cut costs, its revenue decreased, causing the business to report losses of more than VND13.1 billion. In the same period last year, the company posted a net profit of VND14.9 billion.

Experts said that the negative business results were due to the suspension of toll collection for traffic projects and the suspension of infrastructure construction and real estate projects due to COVID-19.

Bright spots

However, there are still some firms that performed well. Deo Ca Traffic Infrastructure Investment SJC (HHV) is one of them.

In its third quarter business results, the company said that its net revenue rose by 52.6 per cent to VND452.1 billion. The growth was mainly driven by revenue from construction and installation activities and the operation of toll stations in the north and central region, which were not heavily affected by the pandemic.

Sharp rises in financial revenue and cost savings helped HHV report profit after tax of more than VND81.4 billion, more than double that of the same period last year.

HHV said that the construction progress at project sites is stable and without interruption. Therefore, the construction and installation work is carried out on schedule as committed, which helps business activities despite the outbreak of COVID-19.

On the stock market, HHV shares were trading at VND22,700 per share on Tuesday morning, up 16.4 per cent for the year. Although shares have not made a breakthrough in market price, they have been noticed by many investors thanks to the sudden increase in liquidity recently.

Of which, the average trading volume of HHV in ten sessions is up to 8.7 million units, while in the first half of this year, the stock had few transactions.

Meanwhile, in the third quarter of 2021, Dat Phuong JSC (DPG) recorded consolidated net revenue of more than VND548.6 billion, up 37 per cent. Of which, revenue from construction contracts accounted for the largest proportion with nearly VND301 billion, up 29 per cent.

The company’s consolidated profit after tax was 26.6 times higher than that of last year to VND71.2 billion.

The Directorate for Roads of Viet Nam, under the Ministry of Transport, proposed suspending toll collection at toll stations to support disease prevention. — VNS

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