Data from the General Statistics Office showed that in the first nine months of the year, sea freight transport reached more than 77.8 million tons, up about 27.5% over the same period last year. Besides, the sea freight price index in the third quarter increased by nearly 5% over the same period, in 9 months overall, it increased by more than 11%. This is a great motivation for the recovery of shipping demand and helps shipping companies and seaports listed on the stock exchange, most of which report strong increases in profits.
Prominent is Vietnam Shipping Joint Stock Company (VOS), last quarter, this company recorded revenue of VND 711.86 billion, an increase of 85.1% over the same period and profit after tax of VND 154.12 billion. VND, down 17% over the same period last year. Accumulated in the first 9 months of 2022, VOS recorded revenue of VND 1,804.25 billion, up 87.1% and pre-tax profit of VND 566.2 billion, up 38% over the same period last year, thereby completing into 144.8% of annual profit plan.
VOS said that in the past 9 months, although the shipping market has been complicated, the freight rates have been maintained at a good level, besides the company also has more revenue from 2 ships Dai An and Dai Phu. ; 125 billion from selling MSB shares, 93 billion from selling Dai Nam ship.
Similarly, the "big brother" of Vietnam National Shipping Lines (Vinalines - MVN) although recorded a decrease in third-quarter profit, but accumulated in 9 months reached more than VND 2,770 billion, up more than 30% compared to the same period in 2021 and exceeding 10%. plan for the whole year.
Another "big man" in the shipping industry, Gemadept Joint Stock Company (GMD), also had favorable business results. Q3 profit increased by more than 76% to nearly 290 billion dong. After 9 months, GMD is about 6% away from the target profit after tax, an increase of nearly 84% compared to the same period last year.
Similarly, Hai An Transport and Unloading Joint Stock Company (HAH) also saw profit after tax increased by more than 2.7 times compared to the same period last year, reaching 270 billion dong. After 9 months, the profit is 1.5 times higher than the whole year plan.
For its part, PetroVietnam Transportation Corporation (PVTrans – PVT) recorded a profit after tax of nearly 390 billion VND, an increase of more than 2.5 times compared to the same period in 2021. After 9 months, this business has more profit before tax. VND 1,035 billion, exceeding 72% of the whole year plan.
The throughput of goods throughput increased by 3.36% over the same period also helped Da Nang Port Joint Stock Company (CDN) report revenue in the first 9 months of 2022 reaching VND 863 billion, up 5.5% over the same period. Profit before tax reached 245 billion VND and fulfilled 71% of the profit target assigned for the whole year.
With Dinh Vu Port Development and Investment JSC (DVP), in 9 months, Dinh Vu Port recorded a net revenue of 445.5 billion dong, a slight increase over the same period, after-tax profit reached nearly 230 billion dong, 5% increase over the same period. In 2022, this business plans to achieve revenue of VND 725 billion, profit before tax of VND 345 billion; the same increase of 19% compared to the previous year. Thus, after 9 months, DVP achieved 62% of revenue target and 80% of pre-tax profit target.
Meanwhile, Ho Chi Minh City's implementation of collecting fees for the use of marine infrastructure works from April 2022 has created great advantages for Dong Nai Port Joint Stock Company (PDN) to well exploit the transshipment service segment. through Dong Nai Port to Cai Mep area ports. As a result, PDN's net revenue and profit after tax in the third quarter were VND 275.5 billion and VND 67.4 billion, up 31% and 77% respectively over the same period last year.
In 9 months, the company has 805 billion dong of net revenue and 193 billion dong of net profit, up 49% over the same period, completing 85.6% of revenue target and 114% of profit target.
For its part, Hai Phong Port continues to maintain its growth momentum in the first 9 months of 2022 thanks to stable domestic container and import and export containers through the Port. As a result, consolidated revenue reached VND 1,737 billion and pre-tax profit was at VND 702 billion, reaching 86% of the 2022 plan.
Challenge
SSI Research assesses that the boom in shipping demand in the past period is mainly due to the impact of the COVID epidemic, so it will be less sustainable than the period before the 2008 crisis, when the global process globalization took place and trade increased around the world.
Besides, carriers are now also more cautious when investing in new shipbuilding, the rate of new construction orders to the total fleet is only 28%, significantly lower than 70% during the 2008 crisis.
On the other hand, the challenge for the shipping industry also comes from the new regulation of the International Maritime Organization (IMO), applied from 2023. This regulation requires shipping lines to reduce emissions by reducing emissions. train speed, upgrade train or buy carbon credits. According to SSI Research, the new regulation could reduce the fleet's operating capacity by 5-10%.
Facing the risk of oversupply in the near future, SSI believes that carriers may limit supply to control freight rates. Not to mention, the cracks in the supply chain have not been completely resolved when China is still implementing the Zero Covid policy and the Russia-Ukraine war is still hot. As such, spot rates will likely find a higher equilibrium than pre-COVID-19 levels and offer hope for a soft landing for the shipping industry.