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Steel producers report heavy losses for second consecutive quarter

The 2022 fourth-quarter financial statements show heavy losses for Hoa Phat, Hoa Sen, Nam Kim, VNSteel, and Tisco. The five industry giants have now seen losses for the second consecutive quarter, with more than VND3.5 trillion ($152.2 million) lost in the last quarter of 2022.

Source: Internet

Hoa Phat Group (HSX: HPG) rerecorded a revenue of VND142 trillion ($6.05 billion) for 2022, down 5 percent on-year. After-tax profit for the year reached more than VND8.4 trillion ($365.2 million), equivalent to a quarter of that in 2021. However, this company reported the biggest individual net loss of more than VND2 trillion ($85.2 million), which continue to fall after a loss of nearly VND1.8 trillion ($76.6 million) in the third quarter. In the last quarter of the year, the group's revenue also decreased by 42 percent on-year to VND26 trillion ($1.1 billion).

Hoa Sen Group's (HSX: HSG) ($29 million) (VND680 billion) losses were an improvement compared to VND887 billion ($37.8 million) in the third quarter last year. Similarly, VNSteel (HSX: TVN) reduced its losses from VND567 billion ($24.15 million) in the previous quarter to VND410 billion ($17.47 million) in the fourth quarter.

Nam Kim (HSX: NKG) and Tisco (HSX: TIS) also improved on their previous quarter losses, at VND356 billion ($15.2 million) and VND17 billion ($724,000) in the last quarter of the year, respectively.

The drop in consumption combined with the continuous decline in prices has significantly affected the revenue of steel producers. According to the Vietnam Steel Association, total steel product consumption in 2022 was 27.3 million tonnes, down 7.2 percent compared to 2021, and total export turnover was 6.28 million tonnes, down nearly 20 percent.

Construction steel was the only item that recorded a slight increase in output by 3 percent on-year, while consumption of galvanized steel decreased by 22 percent, mainly due to the weakening of the export market by 38 percent. Sales of downstream products such as galvanized steel and steel pipes were gloomy, causing the output of hot-rolled coil to decrease by more than 13 percent.




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