Taseco Aviation Services Company (Taseco Airs – HoSE: AST) recorded second quarter consolidated revenue plummeting 84% and net loss of over 13 billion dong. The basic loss on the stock is 295 dong / share, this is the first time the company has recorded a loss since publishing the financial statements.
Source: CBTT SSC
The cause is explained by the impact of Covid-19 epidemic affecting the whole economy in general and tourism industry, aviation services in particular. In the second quarter, the implementation of social spacing under Directive 15 and Directive 16 affected the company’s business activities. Specifically, all business locations closed from 1/4 to April 27.
In May and June, business locations at the international terminal will continue to close in accordance with the regulations on suspension of flight routes, only taking flights to welcome foreign citizens returning from Vietnam to avoid epidemics.
Domestic terminal has been reopened since April 28. However, the number of visitors through the port is not much. Passengers continue to perform the spacing on the plane, so the business points are reopened gradually according to the number of passengers from time to time. In addition, the operation of the À La Carte hotel is also closed under Government directives.
Some other items in the period were financial revenue, down 54% to nearly 5 billion dong because there was no interest from investment cooperation contract and dividends were divided. Factors that helped Taseco Airs reduce losses such as all types of expenses decreased (about VND 59 billion) while profit in joint ventures, associates and other income helped the company get nearly VND 8 billion.
In the first 6 months, aviation service company gained 242 billion dong, down by 55.5%. Profit before tax was 4.6 billion, down 97% and profit after tax was only 1.5 billion, down 99%.
In 2020, Taseco Airs has set a prudent business plan with revenue of VND 575 billion, down 50% compared to the level implemented in 2019. Profit before tax is VND 12.3 billion, down 95%. After 6 months, the company fulfilled 42% of revenue target and 37% of profit plan.
Total assets as of June 30 were VND 720 billion, down 18% compared to the beginning of the period with about VND 300 billion in cash, deposits and cash equivalents. At the Annual General Meeting of Shareholders 2020, Chairman Pham Ngoc Thanh assessed the amount of money the company had higher than other businesses in the same industry. After paying the remaining dividends in 2019, the company has about VND 250 billion. This amount is expected to be used for M & A plan, acquiring units in the industry to increase market share.
Inventories dropped sharply by 40% to 63 billion dong. According to Vice Chairman Nguyen Minh Hai, in the first 6 months, the company focused on handling inventories and returning suppliers. Regarding capital, short-term debt is 37 billion dong, 10.5 times higher than the beginning of the period.