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Cement producer Ha Tien’s profits fall by half

By Tat Dat   July 22, 2022 | 09:00 pm PT
Cement producer Ha Tien’s profits fall by half
A production line in the Vicem Ha Tien Cement Joint Stock Company. Photo courtesy of the company
The Vicem Ha Tien Cement Joint Stock Company saw net profit halve year-on-year in the first half to VND160 billion (US$6.8 million) due to higher costs.

It reported revenues of VND4.34 trillion ($184.8 million), up 8.5 percent.

The company said prices of key inputs like coal, oil and gypsum increased sharply, pulling down profits. The military conflict between Russia and Ukraine and the embargo by the west have caused global coal, oil and gas crises.

In March, Vicem Ha Tien increased cement prices by VND100,000 ($4.27) per ton. According to the Vietnam Cement Association, coal accounts for 35-50 percent of cement production costs.

Nearly two thirds of coal have to be imported, and so global prices heavily impact Vietnamese cement production costs.

According to Mirae Assets Securities Vietnam Company, this year Vicem Ha Tien faces threats like soaring input costs and competition from cement and clinker exporters in the north like Thanh Thang Group Cement Joint Stock Company, Nghi Son Cement Corporation and Thang Long Cement Joint Stock Company.

It predicted full-year revenues of some VND9.14 trillion for the company and profits of VND495 billion, both representing a 30 percent increase from last year.

However, BIDV Securities Company forecast revenues of VND9.24 trillion but profits of only VND380 billion.

 
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