Pomina steel continues to lose nearly trillion

According to the fourth quarter/2024 financial statements, Pomina Steel Joint Stock Company (POM) has a consolidated revenue of nearly 2,328 billion VND, down 29% compared to the previous year. Mostly, the revenue of domestic consumption steel with a proportion of 78%, up 63% over the same period. In contrast, the export segment decreased by 54% and accounted for only 19% of total revenue.

The price of sales exceeded the revenue caused Pomina to make a gross loss of nearly 80 billion dong, about 20 billion higher than the same period. In addition, the revenue of financial activities also decreases.

The company burdens more than 733 billion dong of fixed cost, of which more than 90% are interest. In addition, POM also recorded more than 201 billion other expenses, most of which are not explained in detail.

In total, this enterprise has a profit after tax of nearly 992 billion dong, inching slightly compared to the previous year. This is the 3rd consecutive year, Pomina business is greasy. Accumulated losses recorded more than VND 2,601 billion, nearly 10 times more than equity.

The Board of Directors said that factories still stop working but suffer costs, of which interest expenses account for the most proportion, causing the company to lose. They are looking for investors to restructure, helping factories to produce again.

The company is seeking to minimize costs by reducing labor, maximizing electricity, water, office appliances. Thanks to that in the last quarter of 2024, POM’s loss decreased by more than 16% over the same period.

By the end of the previous year, Pomina was more than 6,205 billion dong and financial debt, accounting for nearly two -thirds of total liabilities. They mainly borrowed short -term loans in Vietinbank, BIDV, Vietcombank … In addition, this business is also borrowing Dai Quang Minh VND 300 billion.

In long -term, 680 billion dong loans to build the blast furnace project is the largest. This loan in VietinBank from March 2019 to invest in a blast furnace project of 1 million tons of steel billet with a capacity of 1 million tons per year in Ba Ria – Vung Tau. The total amount of disbursed money is VND 1,035 billion.

This blast furnace project is also the main cause of POM’s business situation. This enterprise must bring experts from China to implementation but get entangled at the peak of the disease, causing the project to be prolonged. The company suffered a great loss of machinery and labor.

Last year, Pomina signed a strategic cooperation agreement with Nansei Steel Group (Japan) on the commitment to providing enough raw materials for Pomina 2 factory.

POM shares have been listed on HOSE from May 2024 after 14 years on the floor. Currently this stock code trades on UPCoM for 2,100 dong per unit.