Coteccons reports 8 percent decline in profits

By Phuong Dong   January 22, 2019 | 07:20 pm PT
Coteccons reports 8 percent decline in profits
Workers are seen at a construction site in Hanoi. Photo by Reuters/Kham
Construction giant Coteccons has reported an 8 percent fall in net profit last year, and blamed it on rising costs.

The 2018 financial results announced by the company recently shows a profit after tax of VND1.51 trillion ($65.08 million) while revenue was up 5 percent at VND28.56 trillion ($1.23 billion).

The company said it had faced many challenges last year such as higher material and labor costs.

Besides, many major construction works are under way but their revenues have yet to be recorded in its books, it said.

Construction accounted for almost all Coteccons’ revenues, with a modest amount coming from rental of construction equipment, offices and sales of materials.

Short-term receivables accounted for the largest proportion of the company’s assets at over VND9 trillion ($387.81 million).

Liabilities remained largely unchanged through the year at VND8.86 trillion ($381.78 million) or 52.73 percent of total assets. Coteccons is one of the few listed companies without any bank debt.

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