Vinalines’s debts drop by US$440 million after restructuring
In period 2014 – 2017, Vietnam National Shipping Lines (Vinalines) has successfully reduced its debts by VND10.6 trillion (US$440 million).
In 2017, the parent company’s revenue reached VND3.1 trillion (US$136 million), up 12% over the year’s plan, resulting in profit of VND345 billion (US$15 million), a 3.7 times increase compared to 2017’s plan.
Vinalines's debts have dropped sharply after restructuring.
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Besides, Vinalines has merged member companies to open domestic transport route under the brand name of Vinalines; providing waterway lighterage service for Hai Phong – Viet Tri route, as well as to central and southern region, Mekong delta.
For international markets, Vinalines set focus on Myanmar’s market through its cooperation with Dong A companies in providing transport and logistics services for equipment and materials, Russian market for coal transportation and Cambodian market for port development and goods distribution.
Vinalines currently manages and operates a fleet with diverse types including Container ship, bulk carrier, oil tanker and other types of cargo vessel. Vinalines fleet has large bulk carriers up to 73.000 DWT, 1.800 TEU Container ships and 50.000 DWT Oil tankers. Vinalines fleet currently accounts for 70% of the fleet capacity in the country and carries 60% of Vietnam’s import and export goods.
By the end of 2017, Vinalines has completed divesting from 39 companies for VND2.4 trillion (US$105 million) in return, resulting in net profit of VND360 billion (US$15.8 million).
Vinalines also successfully restructured debts for an amount of VND6.6 trillion (US$290 million). In overall, the group has reduced its debt by VND10.6 trillion (US$440 million) in period 2014 – 2017, according to Le Quang Trung, Vice General Director of Vinalines.
Moreover, its member companies also reduced debts by VND2.3 trillion (US$101 million). As of December 31, 2017, total debts the group owned to banks totaled VND14.7 trillion (US$646 million), including original value of VND11.3 trillion (US$497 million) and unpaid interest of VND3.3 trillion (US$145 million).
With regard to the equitization process for Vinalines, the Ministry of Transport has approved its valuation at December 31, 2016 of VND18 trillion (US$792 million), in which the state ownership at Vinalines is estimated at VND12 trillion (US$528 million).
Based on this valuation, the actual value of Vinalines has increased by VND1.3 trillion (US$57.2 million) and state ownership increased by VND1.8 trillion (US$79.2 million) comparing to the valuation in June 2016, where the valuation of Vinalines was estimated at VND16.7 trillion (US$734 million) and state ownership of VND10.1 trillion (US$444 million).
Previously, the Prime Minister has approved Vinalines’ equitization plan, in which the government will claim 65% of Vinalines’ chartered capital, while the group will hold from 65% chartered capital upwards at Hai Phong Port, Sai Gon Port and Danang Port.
In the meantime, Vinalines will maintain its shareholdings at member companies operating in logistics services, while divesting all shares from maritime transport companies.
After completing equitization process, Vinalines is expected to have chartered capital of VND13.9 trillion (US$611 million), equivalent to 1.3 billion shares for price of VND10,000 (US$0.44) per share. As such, the government will hold 904.5 million shares, equaling 65% of Vinalines’s chartered capital.
In addition to preferred shares sold to employees (0.13% of chartered capital), Vinalines will sell an amount of shares equivalent to 30% of chartered capital to strategic investors. The remaining shares of 67.3 million (4.84% of chartered capital) will be auctioned through Initial Public Offering (IPO) in Hanoi Stock Exchange with initial price of VND10,000 (US$0.44) per share.
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