Vietnam Airlines: Cash flow from operating activities is negative VND 5,400 billion
admin 31-07-2020, 22:45

According to the second quarter consolidated financial statements of Vietnam Airlines (HoSE: HVN), the cash flow from operating activities was negative VND 5,371 billion, an additional negative of VND 1,550 billion compared to the end of the first quarter is VND 356 billion. In the same period last year, business cash flow was positive 5,327 billion dong.

Previously, Head of Finance and Accounting cum Chief Accountant Tran Thanh Hien once said that the reduction of cash flow due to customer refund status. In a mid-July talk, General Director Duong Tri Thanh said the current cash flow deficit was VND 16,000 billion. Vietnam Airlines will fall into a state of liquidity loss from August.

As of June 30, cash, deposits and cash equivalents were VND 4,250 billion, down 65%. Regarding capital, short-term financial debt is 11,104 billion VND, only increasing 3% compared to 31/3 but 1.7 times higher than the beginning of the period. Long-term borrowings decreased compared to the first quarter and the beginning of the year to VND 23,880 billion.

Regarding business results, the national airline also reported a sharp drop in Q2 revenue and a record loss of 4,031 billion dong, 1.5 times higher than Q1.

In the first quarter, the company recorded a loss of over 2,600 billion dong. By the second quarter, the peak tourist season of the year, the company’s business was adversely affected by the Covid-19 epidemic when the international flight stopped from the end of March while this segment accounted for more than 65% of revenue. Domestic revenue has just recovered from the end of April.

Vietnam Airlines: Cash flow from operating activities is negative VND 5,400 billion

Source: CBTT SSC

Net revenue reached VND 5,995 billion, down 75%. In particular, air transport revenue, accounting for the largest proportion and plummeting 75%, equivalent to a loss of VND 14,816 billion compared to the second quarter of 2019. Gross loss is 3,874 billion VND, while the same period is 2,370 billion VND.

The bright spot is financial profit of 453 billion dong thanks to exchange rate difference interest, boosting sales 2.3 times as much as Q2 / 2019. Meanwhile, expenses decreased by 41% to VND 450 billion. Both selling and administrative expenses decreased by more than 50%, respectively recorded at 588 billion and 258 billion.

Thanks to other income, mainly from liquidation and transfer of fixed assets worth 397 billion dong, Vietnam Airlines reduced after-tax loss to 4,031 billion dong. The basic loss on the stock is 2,781 dong / share.

At the end of 6 months, the national airline had VND 24,808 billion in revenue, a 50% decrease and a net loss of VND 6,642 billion. The airline has not yet officially submitted the proposal to the General Meeting of Shareholders but according to the latest plan, Vietnam Airlines expects a loss of VND 15,000 billion this year.

Recently, the airline announced the opening of 22 new domestic routes to cover variable costs (flight fuel, crew salaries ), reduce fixed costs and, more importantly, bring cash flow for businesses. Karma. However, the complicated situation of the Covid-19 epidemic caused the company to petition the Government for emergency assistance of VND 12,000 billion to avoid running out of money by the end of August.