Vietnam Airlines to offload stake in jet fuel subsidiary Skypec

It plans set to sell the shares through a public auction from now through 2027, it said in a statement.

Two years ago it had first mentioned plans to divest Skypec stakes, but again without revealing the proportion, as part of its comprehensive restructuring plan to recover from losses.

A Skypec refueler refilling a Vietnam Airlines aircraft. Photo courtesy of Skypect

Skypec is one of Vietnam Airlines’ best performing subsidiaries along with aircraft engineering company Vaeco. Skypec and Petrolimex Aviation are Vietnam’s two main aviation fuel suppliers.

With a total storage capacity of 200,000 cubic meters, Skypec operates at 18 airports across Vietnam and four international airports in South Korea.

The company supplies fuel to all domestic carriers and nearly 100 international airlines flying to Vietnam.

Last year it sold nearly 1.6 million tons of jet fuel generating revenues of VND35.27 trillion (US$1.33 billion) and after-tax profits in excess of VND268 billion.

Vietnam Airlines reversed its negative net worth this month thanks to a VND7.77 trillion infusion of capital by the government, which now owns a 47.09% stake in it.

In the first half of this year its revenues rose by 10% year-on-year to VND58.68 trillion, while profit before tax was up 19.3% to VND6.68 trillion.