SBIC reports encouraging results, despite losses: Minister

Wednesday, Jan 21, 2015 11:18

Vinashin Orient ship. The SBIC sets a target of more than VND7.2 trillion ($338 million) in 2015, an increase of 25.9 per cent, compared with last year.— Photo

HA NOI (Biz Hub) — The state-run Shipbuilding Industry Corporation (SBIC) successfully restructured US$135 million of its foreign debt and VND16.61 trillion ($790.95 million) of its domestic debt in 2014, CEO Vu Anh Tuan revealed.

Tuan made the announcement at a press conference on January 16, where he also outlined the company's annual goals.

SBIC is still working on to restructure its existing debt worth VND4.68 trillion ($219.7 million), which is expected to be resolved through a bond issuance project, he added.

The CEO said 2014 was a challenging year for the corporation. Although the international and domestic transportation market showed signs of recovery, the corporation is yet to receive big international, as well as domestic ship building contracts.

Its total revenue from both core and non-core activities was VND7.64 trillion ($363.8 million) last year, representing 128.96 per cent of the set target. Of this, nearly VND5.72 trillion ($272.38 million) stemmed from production value, including about VND3.78 trillion ($225.71 million) from shipbuilding and repair services.

However, the corporation reported a loss of VND2,188 billion ($102.7 million) in 2014.

About 14,800 of the total 16,500 employees currently have jobs. The company is also estimated to be VND147 billion ($6.9 million) in debt for the salary of its employees and VND130 billion ($6.1 million) in debt for health, social and unemployment insurances.

Speaking at the conference, the Minister of Transport Dinh La Thang said it had been a difficult year for the corporation, but it had made the best efforts to achieve encouraging results during its restructuring process.

"If we separate the previous debts, it is obvious that the corporation's operations were effective this year," said Thang.

The minister said it is important that SBIC focus on the outcome and not run after output and revenue, and concentrate on the domestic market, but regularly expand into the foreign market as well.

Thang said last year's results were very basic, and that in order for the corporation to achieve better results in 2015 and going forward, it should implement its restructuring itinerary at right time, so that it is able to begin paying its debts as of 2024.

The corporation set a target of more than VND7.2 trillion ($338 million) in 2015, an increase of 25.9 per cent, compared with last year. Of this, ship building is predicted to earn over VND5.61 trillion ($263.38 million), 29.6 per cent higher than last year. — VNS

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