Vietnam’s Hoa Phat increased revenues by 29pc to VND40trn ($1.7bn) in the six-month period ended in June 2020 compared to VND31trn in the same period in 2019.
Production and trading of steels for the three-month period ended in June 2020 rose 16pc to VND27tn from VND23.3tn in the previous quarter. Of the total Q2 revenue in this segment, VND17.3tn (64pc) was from external revenue and VND9.8tn (36pc) was from inter-segment revenue. In Q1, 67pc or VND15.6tn came from external revenue whereas 33pc or VND7.8tn was inter-segment revenue.
In Q2 2020 the company encountered an accounting elimination charge of VND9.8tn compared with VND7.8tn in the previous quarter thereby reducing the recognized consolidated revenue to only VND40tn as opposed to the higher VND50.3tn just from the steel segment. Steel revenues made up around 96pc of total revenues for Hoa Phat and absorbed the majority of the accounting elimination.
The steel segment’s net operating profits increased by 29pc to 4tn in Q2 2020 compared to 3.1trn in Q1 2020.
The company’s consolidated gross profit increased by 34pc to VND7.5tn in H1 2020 from VND5.6tn in the same period in 2019. Net operating profit increased by 24pc to VND5.7tn from VND4.6tn in the same period.
Major construction project investments in progress in H1 2020 were 22trn on Dung Quat Steel Production Complex and 606bn on Color Coating Steel Sheet Factory.
($1= VND 23,188)