Vietnam airport logistics companies report profits

Noi Bai Cargo Terminal Services (NCT) reported revenue in the fourth quarter of 2020 of 205.6 billion dong (US$8.9mil), an increase of 11% over the same period last year.

HANOI: Although the aviation industry was ravaged by the Covid-19 pandemic, logistics companies at airports still maintained operations.

Noi Bai Cargo Terminal Services (NCT) reported revenue in the fourth quarter of 2020 of 205.6 billion dong (US$8.9mil), an increase of 11% over the same period last year.

It announced post-tax profit of 52.5 billion dong, an increase of 5.6%.

The company attributed the profit increase to the receipt of a dividend of 7.1 billion dong from the out-of-business investment.

In the whole of 2020, the company achieved total revenue of nearly 697 billion dong, down 21.6% compared to 2019, and post-tax profit of 206.75 billion dong, down 14.6%, up 8% compared with the yearly plan.

Earnings per share reached 7,495 dong.

According to NCT, the Covid-19 pandemic has had a great impact on the aviation industry and air cargo services.

The output of goods to and from Noi Bai international airport decreased compared to 2019.The company always followed market developments and worked closely with other airlines to maintain operational plans, especially exploiting freight flights.

Saigon Cargo Service Joint Stock Company (SCS) announced Q4 revenue of about 197 billion dong, a negligible decrease compared to the same period last year, after-tax profit reached 128.5 billion dong, down by nearly 5%.

For the whole of 2020, SCS’ revenue reached nearly 693 billion dong, down 7.4%, while post-tax profit touched 464 billion dong, down 7.5% compared with 2019. SCS’ gross profit margin decreased compared to the previous year but was still at a very high level of 78%.

According to a report by Transport Intelligence (Ti), twice in the past decade, the air transport market has been propelled by inventory re-stocking cycles.

These were boosted by a rapid increase in new export orders growth, which takes place at a time when the global economy and trade are rapidly developing.

However, given capacity constraints, it is unlikely that air transport will increase so strongly next year.

After the global economy plunged to its lowest levels in April and May of this year, some cargo stockpiling took place, but the shipping industry witnessed the strongest increase in volume.

Ti expects both sea and air freight forwarding to see a strong boost from the industrial and automotive sectors next year, as well as from the healthcare and medicine sectors.

Meanwhile, the volume of cross-border e-commerce, driven by blockade measures, has accelerated this year, and will set a strong growth path in the future.

Ti forecasts that the air freight forwarding market will grow at a compound annual growth rate (GAGR) of 5.6% in the 2020-2024 period and the sea freight forwarding market will reach a CAGR of 5.2%.

The air transport market has lower growth.

Its recovery would depend on the recovery of the number of passengers, Ti says. — Viet Nam News/ANN

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