The Ocean Freight Industry: A Slow Start to Q1

17 May, 2025

According to data from VietstockFinance, the combined revenue of 23 marine transport enterprises (listed on the HOSE, HNX, and UPCoM stock exchanges) in Q1/2025 reached nearly VND 12.1 trillion, up 6.6% year-on-year. The industry’s net profit exceeded VND 1 trillion, a 10% increase, mainly driven by the outstanding growth of a few companies.

HAH and TOS led the growth

Hai An Transport and Stevedoring (HOSE: HAH) achieved the most impressive growth this quarter with a revenue of VND 1,169 billion, up 66%, and a net profit of VND 233 billion, nearly four times higher than the previous year. The difference from Q1 last year was that HAH added four more vessels to its operations. Additionally, increased cargo volume and freight rates contributed to the positive results this quarter.

Tan Cang Sea Services (UPCoM: TOS) also had a brilliant start to the year, with a revenue of VND 881 billion, a 73% increase, and a net profit of VND 206 billion, up by 474%. TOS attributed this success to increased charter rates compared to the previous year and the efficient utilization of offshore vessels. The disposal of fixed assets also significantly contributed to the final profit.

Not many marine transport businesses experienced profit growth in the first quarter of 2025 (in trillion VND)

Source: Author’s compilation

Weak demand challenges dry bulk carriers

Despite the overall industry growth, several companies faced significant challenges. Notably, Vietnam Maritime Transport (Vosco, HOSE: VOS) experienced a 58% decline in revenue and swung from a profit of over VND 74 billion in the previous year to a loss of more than VND 53 billion. According to VOS, the market for dry bulk and tanker vessels was very weak, with freight rates hitting rock bottom around the Lunar New Year; meanwhile, several large vessels underwent periodic repairs, resulting in a lack of revenue generation.

Similarly, Vinaship Marine Transport (UPCoM: VNA) reported that the international dry bulk market was subdued in the first quarter due to weak demand and disruptions caused by extended holidays. Additionally, the Vinaship Unity vessel underwent repairs in January, leading to a 70% drop in profits.

In the bitumen transport segment, VP Petroleum Transport (UPCoM: VPA) saw a 32% increase in revenue but still incurred a loss of over VND 6 billion due to higher financial expenses caused by exchange rate fluctuations.

Profit decline due to vessel repairs

In Q1, several companies experienced profit declines due to vessel repairs and maintenance. In addition to VOS and VNA, Vietnam Oriental Shipping and Stevedoring (UPCoM: PDV) witnessed a 47% drop in profit, despite a more than 10% increase in revenue, as one of its vessels had to be withdrawn from operation for 10 days for maintenance.

Both revenue and profit of Petrolimex Waterborne Oil Transport (HOSE: PJT) decreased by 12% and 44%, respectively, due to the impact of vessel repairs and a decrease in market demand.

Meanwhile, Pacific Petroleum Transport (HOSE: PVP), despite the addition of the vessel Pacific Pride to its fleet, reported a nearly 13% drop in profit due to increased capital costs and declining freight rates.

Large enterprises such as VOS, MVN, and PVT reported lower profits compared to the previous year (in trillion VND)

Source: Author’s compilation

Turning the tide

A few enterprises made positive strides by turning losses into profits. Notably, Vinafco (UPCoM: VFC) recorded a net profit of VND 8.6 billion, reversing a loss of nearly VND 4 billion in the previous year, thanks to the growth of its transport and warehousing services segment.

Logistics Vicem (HOSE: HTV) also returned to profitability with a net profit of VND 3.6 billion, compared to a loss in the first quarter of last year, attributed to increased revenue and extraordinary income from the disposal of fully depreciated assets.

Tu Kinh

– 08:02 16/05/2025