Train operators' Q1 profits 3 times full-year target

By Tat Dat   May 3, 2024 | 06:09 pm PT
Train operators Hanoi Railway Transportation and Saigon Railway Transportation made nearly three times the profit they had targeted for the full year in just the first quarter.

Hanoi Railway Transportation (HRT)’s revenues were VND710 billion (US$27.9 million), its highest in nine years and a 13% increase from a year ago.

Its profits jumped 87% to VND34 billion, three times its annual target of around VND11.3 billion.

Saigon Railway Transportation’s first-quarter revenues were also 13% up to a five-year high of VND556 billion.

Its profits rose by 25% to VND33 billion, 2.8 times its target for 2024.

The two companies have set their full-year targets low after having good profits in the first three quarters of last year and incurring major losses in the last quarter to end up with VND10.7 billion in the case of HRT and VND14 billion in the case of SGT.

They also expect travel demand to be slow and fuel prices to increase this year, potentially hitting profits.

SRT said its profits were higher during the quarter because it had better train schedules, ticket sales plans and reasonable fares.

HRT said it took various measures to control costs.

Passengers boarding a train at the Saigon Railway Station on April 30, 2024. Photo by Gia Minh

Passengers boarding a train at the Saigon Railway Station on April 30, 2024. Photo by Gia Minh

HRT and SRT are the two largest subsidiaries of the Vietnam Railways Corporation, with the former operating services from Hanoi, including international transportation.

It employs 5,000 workers.

SRT manages routes starting from HCMC, provides tours to popular destinations and owns retail spots at major railway stations across the country.

In recent years both have suffered huge losses or made small profits due to the impact of the Covid-19 pandemic and their own poor services, high prices and outdated facilities.

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