Second quarter Fecon fell by nearly 81% due to no longer profit from divestments
VietReader 6-08-2020, 13:21

Fecon (HoSE: FCN) announced second quarter financial statements with revenue of nearly 762 billion dong, up 26.5% over the same period. Gross profit margin improved, increasing from 10.2% to 14% thanks to lower cost of goods sold.

However, financial income dropped by over 99% to 1.8 billion dong. Financial expenses decreased from VND 119.6 billion to VND 29.6 billion. In contrast, administrative expenses and selling expenses increased by 1.4% and 27.5% over the same period, respectively.

After deducting all expenses, Fecon recorded after-tax profit of the parent company’s shareholders decreased nearly 81%, to 15.6 billion. According to the explanation, this quarter, the company did not record any extraordinary profits from the partial divestment of Vinh Hao 6 Solar Power Project and transferred a 36% stake in Fecon – FCU Underground Construction JSC for Japanese partner Raito Kogyo as the same period last year.

Second quarter Fecon fell by nearly 81% due to no longer profit from divestments

Source: Fecon Financial Statements.

In the first 6 months, revenue and net profit of enterprises are 1,191.4 billion and 28 billion dong respectively, up by 9% and down by 74.3% YoY. With this result, the company has completed 29.8% of the revenue plan and 14.4% of the profit plan.

As of June 30, the total assets of the company reached VND 5,914.7 billion, up 4.7% compared to the beginning of the year. In particular, short-term receivables accounted for 3,633.6 billion, up slightly from the beginning of the period. Inventories increased by 23% to VND 831 billion. Cash and cash equivalents increased from VND 236.5 billion to VND 243.8 billion.

In terms of loans and finance lease liabilities, the company has more than VND 1,000 billion short-term loans, an increase of 32.7% compared to the beginning of the year. Long-term borrowings decreased from VND 379.6 billion to VND 341.3 billion. Total debt increased in the period increased by more than VND 208 billion.

In the second quarter, Fecon won many bidding packages with a total value of about VND 1,762 billion. Including CP03 package undertaking the construction of the Voi Phuc – Tran Hung Dao tunnel section of Nhon – Hanoi Railway Station Project (Metro Line 3) more than 850 billion VND and some design, construction packages (D&B) onshore wind power projects such as B&T Quang Binh wind power project, Thai Hoa wind power plant, Tra Vinh 3 wind power plant.

Currently, Fecon is also investing in a number of wind power projects of 120 MW in Soc Trang province, and at the same time researching and investing in 2 solar power projects and 2 wind power projects. The total capacity of the projects after completion is about 700 MW. In addition, the company is preparing to invest with many other partners and execute the coal and liquefied LNG power projects in Vietnam will start in late 2020 and the first half of 2021.

It is expected that in the fourth quarter of this year, the company will issue 32 million shares with a total expected minimum issuance value of VND 480 billion (equivalent to VND 15,000 / share) for China Harbors Engineering (CHEC) – an enterprise. China has industries similar to Fecon, including infrastructure, energy, ports and real estate. With the expected amount of money, Fecon will use 278 billion dong to invest capital in 4 subsidiaries including, Fecon Energy (FCP), Drilling Piles and Underground Structure Fecon (FDB), Piling Construction and Fecon Construction (FPL), Construction of Fecon pile 1 (FCPL1). The remaining VND 202 billion is added to the working capital of the parent company.

Source: ndh.vn

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