Vietnam Airlines’ stock put on warning list
The Hochiminh Stock Exchange (HoSE) has decided to put the HVN stock of Vietnam Airlines on the warning list from April 15 as its 2020 after-tax profit was reported at negative VND10.9 trillion.
On the stock exchange, HVN stood at VND33,150 per share at the final session last week, with a matching volume of 710,000 shares. The price remained almost unchanged compared with that before the coronavirus pandemic.
In 2020, the national flag carrier reported revenue of VND40.6 trillion, plunging by 69% year-on-year, due to the impact of the health crisis. The airline incurred a loss of over VND11 trillion.
Last year, the total assets of Vietnam Airlines dipped from VND76.5 trillion to VND63 trillion, while its capital dropped at VND6.1 trillion due to the coronavirus pandemic.
As for its business operations in 2020, Vietnam Airlines was allocated VND4 trillion at no interest for three years through credit institutions in line with the Government’s Resolution 194 on supporting Vietnam Airlines to ride out the difficulties caused by the Covid-19 pandemic.
Besides, the national flag carrier will have to issue shares worth VND8 trillion to its existing stakeholders to raise its charter capital and recover growth.
A representative of Vietnam Airlines said that the airline would restart earning profits from 2023 and would not incur losses in 2025 if the virus was brought under control and local and international tourism segments recover.
The Board of Directors of Vietnam Airlines has unexpectedly approved a plan to resume direct flights from Vietnam to the US.