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Highway ‘tycoon’ increased profits nearly 20 times

In 2021, the Vietnam Expressway Development Investment Corporation (VEC) has a profit after tax of more than VND 155 billion, an increase of nearly 20 times compared to the previous year.

According to the consolidated financial statements last year, VEC achieved net revenue of more than 3,260 billion dong, down 11% compared to 2020. Cost of goods sold also increased similarly to about 1,100 billion dong, making the company’s gross profit lower. 19% compared to the previous year, down to 2,153 billion.

However, last year’s profit after tax of VEC still reached VND 155.6 billion. This number increased nearly 20 times compared to 2020 thanks to the sudden increase in financial income of VEC (reaching VND 3,900 billion).

In which, revenue mainly comes from exchange rate difference arising in the period about 3,140 billion dong. More than 10,400 billion dong short-term deposit also brought VEC 564 billion dong profit.

As of December 31, VEC’s total assets reached VND92,384 billion, a slight increase compared to the beginning of the year. Reciprocal on the capital side is liabilities accounting for more than 87% with 80,859 billion dong, of which long-term debt is more than 61,700 billion dong. Currently, the three largest creditors of VEC are the Asian Development Bank with outstanding loans of about VND 30,000 billion by the end of last year, the Japan International Cooperation Agency over VND 27,300 billion, and the World Bank, VND 6,105 billion.

In 2021, the financial expenses of this highway tycoon will also increase nearly 2 times compared to 2020, to more than 5,770 billion VND, of which most is loan interest. In 2020, VEC’s interest expense is about VND 1,650 billion.

Most loan contracts are made to finance high-speed projects such as Noi Bai – Lao Cai, Long Thanh – Dau Giay, Da Nang – Quang Ngai… with payment terms ranging from 16 to 40 five.

According to the plan approved by the Committee for the Management of State Capital at Enterprises, in 2022, VEC will achieve the target of more than 4,000 billion VND in revenue and 418 billion VND in profit after tax. This enterprise has been approved with a total investment capital of about 2,187 billion VND this year.

In the first three months of the year, there were more than 12.5 million vehicle turns on 490 km of highways managed by VEC, a decrease of 0.9%. VEC’s revenue also decreased by 5.3% YoY.

Mr. Tu

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