Vinalines to continue downsizing shipping fleet in 2018

Six vessels are under the radar this year, with nearly 222.4DWT (deadweight tonnes). They include Vinalines Fortuna, Vinalines Ocean, Vinalines Sky, Vinalines Glory, Vinalines Galaxy and Vinalines Ruby. — Photo vinalinescontainer.com

Viet Nam National Shipping Lines (Vinalines) will continue to downsize its shipping fleet with additional sales of vessels in 2018.

Last year, the shipping company sold eight ships.

The reduction in the shipping fleet negatively affected Vinalines’ business performance last year. The company’s revenue reached over VND3.1 trillion (US$136.2 million) in 2017, half of 2016’s number. Its pre-tax profit was just VND306 billion, equivalent to 12.2 per cent of 2016’s result.

However, with more than 30 subsidiary and affiliate companies, Vinalines’ total consolidated revenue was better at VND15.8 trillion by end-2017, down by 12.3 per cent year-on-year, while its pre-tax profit surged 189 per cent over 2016 to reach VND682 billion.

In 2018, the company’s leaders have set lower business targets due to continued fleet streamlining and decreasing of financial income.

Vinalines is projected to earn a consolidated revenue of VND13.64 trillion in 2018, down by 13.7 per cent from 2017, and a pre-tax profit of VND668 billion, down by 3 per cent.

It expects to complete the equitisation of the parent company this year, in which the State will reduce its holding to 65 per cent. It has established a steering committee for the equitisation process and has determined the corporate value.

It will also continue divesting capital from Vinalines Nha Trang Joint Stock Company, Cai Cui Port, Vinalines Shipping Company and Vinalines Container Shipping Company.

Last year, Vinalines completed the dissolution of seven subsidiaries, divesting capital from five companies and making four companies go for bankruptcy. — VNS