Loss-making Vietnam Airlines (VN, Hanoi Noi Bai International) has put out a tender to find a consultancy firm to help it divest the entirety of its shareholding in profitable wholly-owned jet-fuel distributor Skypec as it grapples with the prospect of a delisting from the stock market. Ho Chi Minh City Stock Exchange nevertheless repeated its threat that the stock was still at risk of delisting.
Skypec is one of the two biggest jet-fuel distributors in Viet Nam, along with Petrolimex Aviation. Vietnam Airlines said in a statement that interested consultancies could make their offers until February 8.
Skypec has total storage capacity of over 220,000 cubic metres (220 million litres), including facilities at major seaports and 18 airports, enabling it to fuel 214,000 aircraft per year. Pre-Covid, it was one of the state-owned flag carrier’s biggest money-spinners, but the bourse has repeatedly warned the airline that it could be delisted for posting consecutive losses.
According to the Ho Chi Minh City Stock Exchange, Vietnam Airlines’ consolidated report for the fourth quarter of 2022 put losses after tax for the year at VND10.47 trillion (USD441 million), giving it an accumulated loss of VND34.2 trillion (USD1.44 billion). Last year, it was forced to sell its 35% stake in Cambodia Angkor Air (K6, Siem Reap) for USD35 million in an effort to boost its equity. It is also in the process of downsizing its fleet.
However, the stock exchange pointed to “the possibility of the shares being delisted if the audited consolidated financial statements for 2022 have a negative after-tax profit at the parent company shareholders and/or equity.”
