Steel producer Pomina reports loss

By Anh Tu   January 31, 2023 | 06:52 pm PT
Steel producer Pomina reports loss
A steel coil is loaded at a factory of Pomina Steel. Photo by Pomina Steel
Pomina Steel has reported a loss of VND1.127 trillion (US$48 million) for 2022, adding another name to the list of steel giants in the red.

In the fourth quarter its revenues plummeted to VND1.8 trillion, or less than half the 2021 figure and the lowest since 2010, as it made a loss of VND460 million.

In the corresponding period for 2021 it had made a profit of VND238 billion.

Its debt remains at more than VND8.5 trillion while owner's equity has decreased by nearly VND1.2 trillion to VND2.5 trillion.

The steel market was generally gloomy last year.

The Vietnam Steel Association reported that production fell by 12% for the year to 29.3 million tons, and demand by 7% to 27.3 million tons.

"For Vietnam’s steel industry, 2022 was a challenging year with falling consumption and complicated developments in material costs. Many businesses encountered difficulties and suffered losses."

Before Pomina, other major steel companies too had reported huge losses.

Hoa Phat suffered a VND2 trillion loss last Q4, dragging the company’s 2022 profits around 75% compared to the first half of the year to more than VND8.4 trillion.

Vietnam Steel Corporation (VNSteel) reported a VND822.4 billion loss while Nam Kim Steel lost VND67 billion.

Steel prices have been falling since August 2022, hitting a two-year low of VND14 million a ton in the fourth quarter.

The industry depends largely on public investment and the housing market, and the latter has been in a slump for months.

VNDirect Securities Corp. expects the steel industry’s woes to continue this year amid low demand for construction and high manufacturing costs.

There could be an upturn in the export market though with China reopening and its real estate market recovering, it said.

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