Vosco earns $5.1 million from sale of ship

Friday, Oct 10, 2014 16:49

One of the ship in Vosco's fleet. Photo coutersy of Vosco

HA NOI (Biz Hub) – Vietnam Ocean Shipping Joint Stock Company (Vosco) has sold a Silver Star ship with a total capacity of 21,967 DWT for about US$5.1 million, the company website announced.

The ship, built in 1995 in Japan, was handed over to the buyer at Quang Ninh harbor last September 30. Vosco's website reported that the Silver Star was fully depreciated, so the money earned from its sale would help improve the company's revenues.

The sale of the Silver Star is reportedly included in Vosco's plan to renovate its shipping fleet and cut down on spending over it. After the sale, Vosco still owns 20 ships with a total capacity of 499,212 DWT.

Vosco's website confirmed that the company's revenues and profits have reached levels that its shareholders' annual meeting in 2014 approved of. Business news site ndh.com reported that in the first six months of 2014, Vosco recorded an accumulated loss of VND85 billion ($4 million), a remarkable decrease compared with its accumulated loss of VND401 billion ($18.87 million) in 2013.

The news site also quoted BSC stock company as reporting that Vosco might have an accumulated loss of VND127 billion ($5.97 million) in the third quarter of 2014.

Based on BSC's calculation, if the exchange rate between the US dollar and VND remains unchanged from now till year-end, the company might gain VND10 billion ($470,588) by selling two ships and receiving insurance money. In a reverse situation, it will continue suffering losses and might be removed from the Hanoi Stock Exchange as a result. – VNS

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