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Vietnam Shipping Industry

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    VIETNAM SHIPPING INDUSTRY OVERVIEW Vietnam shipping industry has many potential to develop Vietnam has a coastline of more than 3,260 kilometers which offers huge potential for the country’s ocean shipping development and other sea-related services. Vietnam also has the highest density of vessel traffic globally with its proximity to the international seaway, as well as being a gateway to the sea for the landlocked neighboring countries such as Laos and the hinterlands, including northwestern Thailand and south-eastern China.

    Vietnam is more visible on the global map now as the government is more willing to respond to investors’ concerns. The rapid growth of the Vietnam economy and its increased integration into the global trading system has seen Vietnam’s external trade volumes accelerate during the past few years. The average total of export-import has been 14% per years since 2006 Unit: US$mn ’06-’12E Items GDP % yoy Export Import Export-Import turnover % yoy 2006 60,897 38,920 44,350 83,270 2007 71,129 16. % 48,200 57,700 105,900 27. 2% 2008 89,835 26. 3% 60,890 76,612 137,502 29. 8% 2009 93,138 3. 7% 56,709 69,152 125,861 -8. 5% 2010 103,496 11. 1% 71,679 83,780 155,459 23. 5% 2011 121,988 17. 9% 95,445 105,007 200,452 28. 9% 2012E 139,212 14. 1% 105,800 107,400 213,200 6. 4% CAGR 12. 5% 15. 4% 13. 5% 14. 4% Source: General Statistics Office of Vietnam In that common tendency, the operation of merchant shipping also got the significant growth. 06-’12E Items 2006 Quantity of cargo throughput via 102,566 ports (1,000 MT) % yoy 20% 2,777 TEUs (‘000) % yoy 20% Source: Vietnam Seaports Association 2007 133,799 30% 4,287 54% 2008 143,612 7% 4,964 16% 2009 172,125 20% 5,399 9% 2010 151,007 -12% 6,430 19% 2011 157,140 4% 6,875 7% 2012E 163,522 4% 7,350 7% CAGR 6. 9% 14. 9% Vietnam now has nearly 350 berths with a total length of 41,000 meters, including 35 access channels to national ports and 12 access channels to dedicated ports. According to the statistics, the weight of export- import good by sea occupies about 80% of the total quantity of export- import goods.

    Merchant shipping industry encompasses a lot of branches such as bulk carrier, tanker and container World fleet by principal vessel types during the past few years Unit: millions of DWT ’00-’11 Ship types Oil tanker Dry bulker General cargo Container Other Total 1980 339 186 116 11 31 683 1985 261 232 106 20 45 664 1990 246 235 103 26 49 659 1995 268 262 104 44 58 736 2000 282 276 101 64 75 798 2005 336 321 106 98 49 910 2010 450 457 108 169 92 1,276 2011 475 532 109 184 96 1,396 % 34% 38% 8% 13% 7% 100% CAGR 4. 9% 6. % 0. 7% 10. 1% 2. 3% ’05-’11 CAGR 5. 9% 8. 8% 0. 5% 11. 1% 11. 9% Source: Review of maritime transport 2011 – United Nation Conferrence on Trade and Development (UNCTAD) Bulk carriers (also called bulk freighter, or bulker) are merchant ships specially designed to transport unpackaged bulk cargo such as grains, coal, iron ore, bauxite/alumina, and cement in its cargo holds. The fleet of dry bulk transport sector contributed 38% of the world tonnage and comprise of 4 sizes in the internal dry bulk carriers sector:

    Ship Classification Capesize Panamax Supramax Handysize Dead Weight Tons 100,000+ 60,000-80,000 45,000-59,000 15,000-35,000 % of World Fleet 10% 19% 37% 34% % of Dry Bulk Traffic 62% 20% 18% w/ Handysize 18% w/ Supramax New price (US$ mn) 58 35 25 Used price (US$ mn) 54 25 20 Source: Review of maritime transport 2011 – UNCTAD Tankers for the transport of fluids such as crude oil, petroleum products, liquefied petroleum gas (LPG), liquefied natural gas (LNG) and chemicals, also vegetable oils, wine and other food. The tanker sector makes up nearly 4% of the world tonnage and includes the following classes: New price (US$ mn) 36 66 103 Used price (US$ mn) 26 62 86 Ship Classification Product tanker Panamax Aframax Suezm ax VLCC Ultra Large Crude Carrier Size in DWT 10,000–60,000 60,000–80,000 80,000–120,000 120,000–200,000 200,000–320,000 320,000–550,000 Source: Review of maritime transport 2011 – UNCTAD Containers are cargo ships that carry all of load in truck-size containers, in a technique called containerization. They form a common means of commercial intermodal freight transport.

    The fleet of this one occupied 13% of of the world tonnage and divided as follow: New price (US$ mn) 107 75 23 10 6 Used price (US$ mn) 28 Ship Classification Ultra Large Container Vessel New panamax Post panam ax Panamax Feedermax Feeder Small feeder Capacity (TEU) 14,501 and higher 10,000–14,500 5,101–10,000 3,001 – 5,100 2,001 – 3,000 1,001 – 2,000 Up to 1,000 Source: Review of maritime transport 2011 – UNCTAD Input factors Investment in shipping is the important factor that decides the operation of shipping firms.

    As above statistic figures, Vietnam shipping has the rapid increase in the quantity and weight total during the past few years. The growth of Vietnam shipping has been implemented through 2 main sources which are import used ships and newly domestic ships. As for buying used ships: Vietnam shipping owners often buy from such countries as Japan, Korea where the shipping industry has been developed and occupied most of share-market in the world (Korea occupies 37% of the share-market and Japan occupies nearly 34% of the share-market).

    The activities of the domestic newly-built ships: are mainly done in Vietnam Shipping Corporation (Vinashin) that has gone bankrupt in 2010. Therefore, buying used ships are still considered to be the important investment for domestic shipping enterprises. Ship value is very huge so in order to finance for ship purchase, repair and maintenance shipping companies usually have to borrow a large amount of working capital. Competitive capacity of Vietnam’s cargo fleet Currently, Vietnam’s cargo vessel fleet ranks fourth in Asia and stands 60th out of 152 nations in the world.

    The fleet consists of 1,700 ships with a total capacity of more than 7. 4 million DWT. ’06-’12E Items Number of ships Average ship age Weight total (‘000 DWT) Marine shipping output total (‘000 tons) + Domestic + Foreign output total Average transporting capacity (tons/DWT) Goods output through Vietnam ports (‘000 tons) + Export-Import + Domestic Market share of Vietnam companies + Domestic shipping + Export-import shipping 2006 1,107 17. 00 3,400 49,480 13,200 36,280 14. 55 154,500 112,800 41,700 2007 1,200 16. 0 4,000 NA NA NA 181,100 138,200 42,900 2008 1,445 16. 00 5,579 69,237 23,934 45,303 12. 41 196,600 153,800 42,800 2009 1,598 15. 50 6,200 81,000 28,000 53,000 13. 06 251,200 190,900 60,300 2010 1,636 15. 00 7,100 88,800 26,400 62,400 12. 51 259,200 183,700 75,500 2011 1,691 14. 50 7,400 96,300 30,000 66,300 13. 01 290,000 205,529 84,471 2012E 1,776 14. 00 7,770 101,115 31,500 69,615 13. 01 310,523 220,074 90,449 10. 5% CAGR 7. 0% 12. 5% 10. 7% 12% 0% 16% 15% 14% 15% 14%

    Source: Information synthetis from Vinamarine, Vietnam Seaports Association One of the features of Vietnam shipping is the less competitiveness, even to domestic shipping sharemarket. As the above analysis, the growth of Vietnam export-import turn-over during the past few years has reached the fairly high average rate of 14% each year and this rate is predicted to constantly be at 15% during the next five years. With the amount of shipping of more than 80% of the export-import goods, shipping is the potential field for developing.

    However, share-market of Vietnam shipping is always at the level of 15% and about the rest of 85% belongs to the foreign shipping. There are two key reasons that lead to the low share-market of export-import shipping of Vietnam shipping: + Firstly, Vietnam export-import enterprises mostly implement the purchasing and selling according to the method of buying CIF and selling FOB. Therefore, the right of choosing ships is always belongs to foreign partnerships.

    Vietnam shipping owners do not have the active opportunities to search sources of clients + Secondly, Vietnam shipping capacity is smaller than foreign ships, with average weight of about 4,000 tons (the foreign ships size are over 10,000 tons), most Vietnamese ships only ply part of the route, unloading their cargo in Hong Kong for foreign ships to pick up and deliver to final destination ports. + Thirdly, most of the vessels of the shipping industry are old and degraded. The average age of Vietnam ships is 14. years old while world is about 10 years old. So that many vessels in Vietnam’s existing cargo fleet also have problems meeting the international standards for security, safety and environment protection, they end up being detained at foreign ports for breaching the standards, which puts most cargo owners off. There are some domestic great enterprises that have internationally standard and highly competitive ships such as VOS, VST (bulk carrier players), which concentrate on exploiting the Far-east routes.

    Some other units also concentrate on exploiting sources of parent companies such as VIP, VTO (belonging to Vietnam Petroleum Corporation), PVT (Vietnam Oil and Gas Corporation) that are tanker players. The remaining other shipping units are old ships which do not get the international standards, its experience as well as competitive capability are not good, which lead to being unable of getting the market share from foreign ships.

    For 2012 and outlook for the coming years, there are many indicators show that maintaining negative on the Vietnam shipping sector. Supply – demand gap in the shipping market The buoyant growth of the previous twenty years ended abruptly in 2008, and the industry, which ordered new capacity before the crisis faces over-capacity in its market for some years to come. On the contrary, there were not many goods to carry due to the economic downturn and tight credit policy. So that oversupply of cargo carriers is inevitable.

    According to the lastest shipping market report, 2012 expected total weight of fleet has a minimum increase of 12% yoy while expectation of only 4%-5% increase in the dry bulk transport demand. Vietnam’s export – import turnover decrease rapidly, Q1’ 2012 exported rice volume stand at only 50% of the same period last year. At the same time, imported fertilizer, agricultural products and raw materials decline due to weak domestic consumption. As the result, despite of low freight rates it is difficult for shipping companies to find customers.

    Those would still put pressure on freight rate which has been being on the downside trend. Freight rates fluctuate wildly and on the downside trend BDI 2000-2500 points will help the bulk fleet to break even. However, BDI is currently seeing downward momentum from a peak of nearly 12,000 points in middle of 2008 and average index was fluctuating around 850 in Q3’ 2012. BDI – Baltic Dry Index 13000 12000 11000 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0

    High operating cost Fuel is one of the important input raw materials that accounts for about 30%-40% of COGS of shipping firms has fluctuating prices and on the upside trend. Besides, port charges and insurance fees tend to increase. It’s unprofitable to ship low volumes of cargo over long distances because the shipping fees won’t be high enough to offset the cost of fuel, insurance and labor. High financial leverage Many companies borrowed huge loans, mainly in foreign currencies, to purchase ships at the peak of industry development.

    Hence, whenever the exchange rate was raised and interest rates increase, they obviously suffered considerable loss from exchange rate difference. Most Vietnamese shipping companies incurred losses because of huge borrowing and depreciation costs. The downtrend of shipping industry is not over as lending interests burden shipping companies already facing lower income. Besides, the expanding presence of foreign shipping companies in domestic and international routes to and from Vietnam shows the weakening of local transport firms.

    Income decline, cost increase and financial burdens caused by interest expenses and exchange rate losses ate away earnings of shipping operations. Their profits, if any, primarily came from liquidating old ships. As depreciation expenses of sold old ships ran out or almost ran out, the book profit was very high. Those are the reasons why most shipping firms have reported loss in 1H 2012. Despite gaining negative profits, many shipping enterprises have managed to avoid losses by putting their vessels on sale. Vietnam’s Comparable Marine Transportation data in US$, otherwise noted) Tanker VIP Unit: DWT Number of ships Capacity of fleet Average total weight per ship Average shipping age Valuation metrics TEV (US$’mm) TEV/2010A EBITDA TEV/2011A EBITDA 2010A PE 2011A PE 2010A PB 2011A PB Earnings 2010A EBITDA (US$’mm ) 2011A EBITDA (US$’mm ) 2010A EBITDA margin 2011A EBITDA margin 2010A Net margin 2011A Net margin Leverage D/E Total debt/2011A EBITDA 2011A EBITDA/interest expenses Free-Float Available foreign room 14 341,747 24,411 NA 4 137,707 34,427 11. 50 11 171,994 15,636 20. 9 25 560,422 36,967 15. 16 13 264,986 20,384 13. 46 Bulker VNA Unit: DWT 14 196,380 14,027 19. 00 8 88,822 11,103 12. 75 3 27,990 9,330 35. 33 Container GMD VSG Unit: TEUs 6 4,097 683 20. 00 3 22,186 7,395 15. 33 PVT VTO VOS VST DDM SSG 217. 98 6. 8x 6. 9x 13. 0x 38. 6x 0. 3x 0. 3x 65. 03 3. 9x 3. 3x 4. 7x 6. 7x 0. 4x 0. 4x 78. 32 2. 6x 2. 5x 4. 2x 5. 3x 0. 3x 0. 3x 167. 71 5. 3x 7. 0x 2. 8x 79. 1x 0. 2x 0. 2x 106. 34 4. 1x 8. 0x 1. 6x 141. 0x 0. 2x 0. 2x 42. 96 4. 4x 4. 4x 1. 3x 1. 9x 0. 2x 0. 2x 50. 70 7. 7x 6. 8x NM 86. x -0. 2x 0. 5x 8. 13 4. 5x 4. 4x 4. 0x 0. 5x 0. 5x 91. 46 4. 8x 5. 5x 8. 1x 270. 1x 0. 4x 0. 4x 20. 33 16. 2x 11. 1x NM NM 0. 1x 0. 4x 32. 23 31. 76 19. 0% 15. 9% 2. 1% 0. 6% 16. 83 19. 93 24. 8% 24. 3% 5. 4% 3. 1% 30. 62 31. 38 47. 3% 39. 3% 6. 1% 4. 0% 31. 45 24. 11 24. 1% 16. 8% 4. 4% 0. 1% 25. 99 13. 27 28. 0% 14. 9% 4. 8% 0. 1% 9. 79 9. 73 21. 8% 19. 8% 4. 8% 3. 2% 6. 62 7. 44 46. 4% 43. 7% -22. 3% 0. 1% 1. 80 1. 83 25. 2% 30. 4% 3. 0% 0. 0% 18. 98 16. 50 18. 4% 14. 5% 9. 6% 0. 3% 1. 25 1. 84 26. 7% 34. 3% -41. 5% -33. % 1. 9x 6. 5x 4. 0x 41. 6% 92. 7% 1. 3x 2. 6x 6. 0x 48. 5% 93. 5% 1. 6x 2. 6x 4. 8x 47. 4% 95. 5% 2. 2x 5. 5x 3. 2x 40. 0% 99. 8% 3. 5x 8. 1x 1. 6x 40. 0% 99. 1% 2. 5x 4. 2x 2. 9x 49. 0% 98. 0% 34. 9x 6. 9x 2. 0x 44. 0% 99. 4% 4. 1x 4. 2x 3. 8x 73. 5% 100. 0% 0. 3x 3. 8x 2. 2x 99. 9% 61. 2% 15. 2x 10. 9x 1. 6x 70. 0% 95. 8% Vietnam Shipping Company Limited (HOSE: VOS) Being the most capable shipping enterprise in Vietnam, VOS expertise is in dry bulk and oil product transport, while is still a newcomer in container shipping.

    Its strategy is to maintain a balance in those 3 segments, which allows stability in business. + For dry bulk segment, it accounts for about 65% of revenue. VOS is the largest dry bulk carrier in Vietnam, dry bulk fleet includes 21 vessels with weight total of 448,720 DWT and the fairly high average age of 16 (due to the lower requirement of technical complex as well as safety requirements so groceries carrying ships can operate longer than oil-carrying ships.

    Normally, groceries-carrying ships can work within 25-30 years), and major transport products cover rice, clinker, fertilizer, agricultural products, mostly for international route. VOS should maintain the leading position, and the inclusion of two Supramax vessels (about 50,000 DWT, where normally Vietnam dry bulk carrier operate the Handy-size vessels that less than 35,000 DWT) show its ambition for further expansion. For the tanker segment, mainly transporting oil product which contributes about 25% of revenue, the fleet of the Company included 2 ships with the weight total of 94,250 DWT. Oil-carrying capacity of VOS is fairly strong in terms of weight total which is equal to some oil-carrying enterprises such as VIP, VTO. The average age of oil-carrying ships is 10. This is the fleet with the low average age compared with the average age of Vietnam oil-carrying ships. In fact, oil- carrying ships can operate within 20 years according to the International regulations.

    Depending on the better recovery of freight rates of oil product transport market, VOS plan to invest 45,000– 55,000 DWT oil product vessels to maintain the target of balancing in 3 segments. + For container segment, VOS is a newcomer in this segment and the operation of 2 small-size vessels with total capacity of 1,121 TEUs is not profitable, and the recent route opening to Thailand is to make an attempt at improving the performance, which the best VOS can do is to break even in this segment. Capacity of fleets

    Capacity (DWT) 6,205 6,500 6,500 6,500 7,060 7,371 12,300 13,316 18,366 21,353 21,967 22,035 22,777 22,704 23,790 24,835 25,398 27,000 46,671 52,520 53,552 47,102 47,148 8,515 8,937 560,422 Capacity Capacity (CBM – M3) (TEUs) No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Name Song Ngan Vinh Thuan Vinh An Vinh Hung Tien Yen Vinh Hoa Vinh Phuoc Lan Ha Ocean Star Morning Star Silver Star Vega Star Lucky Star Blue Star Golden Star Polar Star Nepture Star Diamond Star Vosco Star Vosco Sky Vosco Unity Dai Nam Dai Minh Fortune Navigation Fortune Freighter Total

    Shipping Type Year of built Place of built Bulk carrier Bulk carrier Bulk carrier Bulk carrier Bulk carrier Bulk carrier Bulk carrier Bulk carrier Bulk carrier Bulk carrier Bulk carrier Bulk carrier Bulk carrier Bulk carrier Bulk carrier Bulk carrier Bulk carrier Bulk carrier Bulk carrier Bulk carrier Bulk carrier Tanker Tanker Container Container 1999 2000 2001 2002 1989 1989 1988 2006 2000 1983 1995 1994 2009 2010 1983 1984 1996 1990 1999 2001 2004 2000 2004 1998 1997 Japan Vietnam Vietnam Vietnam Japan Japan Japan Vietnam Korea Japan Japan Japan Vietnam Vietnam Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan

    Shipping age 13. 00 12. 00 11. 00 10. 00 23. 00 23. 00 24. 00 6. 00 12. 00 29. 00 17. 00 18. 00 3. 00 2. 00 29. 00 28. 00 16. 00 22. 00 13. 00 11. 00 8. 00 12. 00 8. 00 14. 00 15. 00 15. 16 53,617. 5 52,536. 7 560 561 1,121 106,154 Ownership structure Capital Structure Vietnam National Shipping Lines (Vinalines) Tr? n Tr? ng Phuc Bao Viet Group Vinafood II Nguy? n Quang Minh Bui Vi? t Hoai Nguy? n Duy Nhi Chau Quang Kh? i No. of shares holding 84,000,000 4,000,000 4,000,000 2,900,000 100,000 49,050 15,000 10,000 % Holding 60. 82 2. 90 2. 0 2. 10 0. 07 0. 04 0. 01 0. 01 As of date 31/12/2011 31/12/2011 31/12/2011 31/12/2011 18/09/2012 31/12/2011 31/12/2010 31/12/2010 Financial review VOSCO (VOS. VN) Capitalization TSO mm Mkt price Total group market cap + Debt + Minority interest – Cash Total Group TEV VNDbn 138. 1 2,600 359 3,194 10 (33) 3,530 Key Financial & Operating Metrics VND’mm Norm. YTD Q2-12 2012 Target 560,422 NA 560,422 1,237,339 3,200,000 61,384 NA 5. 0% 69,034 NA 5. 6% 78,227 NA 107,412 8. 7% (102,345) 9,000 (8. 3%) 0. 3% 115,062 5,185,034 3,193,531 1,337,238 -3. x 0. 3x 16. 4x (3. 9%) (15. 3%) 2. 4x 14. 9x 1. 4x Spot and forecast 20,845 (1) Date US$’000 $0. 12 $17,226 $153,204 496 (1,564) $169,362 (1) 9/27/2012 Total capacity (DWT) Revenue Gross profit % margin SG&A % margin Interest expenses EBITDA % margin Net profit % margin Derpreciation Total Assets Total Debts Shareholders’ equity P/E P/B TEV/EBITDA ROA ROE Leverage ratio D/E Total debt/EBITDA EBITDA/interest expenses Notes (1) USD/AUD: 2010A 610,835 2,905,000 374,522 12. 9% 140,612 4. 8% 126,204 683,122 23. 5% 119,481 4. % 449,212 4,892,003 2,815,501 1,567,721 3. 0x 0. 2x 5. 2x 2. 4% 7. 6% 1. 8x 4. 1x 5. 4x 2010 19,500 2011A 560,422 3,511,000 278,300 7. 9% 155,531 4. 4% 181,970 588,319 16. 8% 6,715 0. 2% 465,551 5,267,994 3,217,762 1,440,834 53. 5x 0. 2x 6. 0x 0. 1% 0. 5% 2. 2x 5. 5x 3. 2x 2011 20,600 2010A 610,835 148,974 19,206 12. 9% 7,211 4. 8% 6,472 35,032 23. 5% 6,127 4. 1% 23,037 250,872 144,385 80,396 US$’000 2011A YTD Q2-12 2012 Target 560,422 560,422 170,437 59,359 153,514 13,510 2,945 7. 9% 5. 0% 7,550 3,312 4. 4% 5. 6% 8,833 3,753 28,559 5,153 16. % 8. 7% 326 (4,910) 432 0. 2% (8. 3%) 0. 3% 22,600 5,520 255,728 248,742 156,202 153,204 69,943 64,151 Norm. 560,422 Vietnam Sea Transport and Chartering Joint- stock Company (HOSE: VST) VST provides marine transportation services for customers shipping bulk dry products: rice, sugar, fertilizer, steel…. The main customers VST serves are Vietnamese rice exporters (representing 45% of total revenues) who sell their products to other SEA countries: Indonesia, Philippines, to West Africa and Central America (Cuba).

    VST also has global exposure as its operation coverage extends to international routes like: South America – West Africa/ Central Asia or West Asia (shipping sugar, 26% of total revenues), Africa – North America (shipping fertilizer, 5% of total revenues), North America SEA region (shipping steel) or transporting agricultural products inbound Asia Pacific area (14% of revenues),… The turnover of shipping services of the Company in 2011 was VND1,544bn occupying 80% of total turnover, decreasing 9% compared with 2010.

    The shipping activity of the company is cosmopolitan, highly competitive and the enterprise has the large scale so turnover and profits from shipping are more likely to be stable and unchangeable during the next years. Capacity of fleets The company currently has a fleet of 13 handy size vessels with total tonnage transportation of nearly 265,000 DWT, being in second largest bulk dry shippers in Vietnam behind VOS and also youngest fleet (13. 5 years on average). Given its utilization rate being over 90%, it shows that VST has strong network with brokerage houses across the globe.

    No. 1 2 3 4 5 6 7 8 9 10 11 12 13 Ship Name Orient 2 Far East 3 Far East 5 VTC Light VTC Globe VTC Sky VTC Dragon VTC Sun VTC Planet VTC Ocean VTC Phoenix VTC ACE VTC Tiger Total Type cargo) Singledeck (Bulk cargo) Singledeck (Bulk cargo) Singledeck (Bulk cargo) Singledeck (Bulk cargo) Singledeck (Bulk cargo) Singledeck (Bulk cargo) Singledeck (Bulk cargo) Singledeck (Bulk cargo) Singledeck (Bulk cargo) Singledeck (Bulk cargo) Singledeck (Bulk cargo) Singledeck (Bulk cargo) Year of built 1986 2004 2006 1995 1995 1997 2007 1996 1993 1999 2008 1996 1999

    Place of built Britain Vietnam Vietnam Japan Japan Japan Japan Japan Japan Philippines Vietnam Japan Japan Shipping age Capacity (DWT) 26. 00 8. 00 6. 00 17. 00 17. 00 15. 00 5. 00 16. 00 19. 00 13. 00 4. 00 16. 00 13. 00 13. 46 15,120 6,523 6,058 21,964 23,726 24,260 22,500 23,581 22,176 23,492 22,763 24,157 28,666 264,986 Ownership structure Similarly as VOS, VST is the member unit that has been controlled and held by Vinalines. It mainly exploits international shipping routes, so the international capacity of competitiveness is fairly good compared with Shipping Companies in Vietnam.

    However, this connection creates unexpected outcomes to the company, for example VST is forced to buy a 56,000 DWT vessel from Vinashin at a price of US$36. 3mln (almost 15% higher than market price). It is also worth noticed that capital raising plans by equities for new CAPEX have been rejected by Vinalines (dilution issue), the firm’s financial leverage will be higher when new loans come into stream. Capital Structure Vietnam National Shipping Lines (Vinalines) Truong Dinh Son SSI Fund Hu? nh Nam Anh Ph? m Th? C? m Ha Hu? nh H? ng Vu Le Th? Lan Duong Dinh Ninh To T? n Dung Nguy? n Th? Bang Tam To Th? Thu Van Thai Van Can Vu Minh Phu? g No. of shares holding 35,400,000 2,975,078 2,762,127 96,962 77,248 45,475 28,320 20,207 17,847 10,620 7,375 3,835 3,245 % Holding 60. 00 5. 04 4. 68 0. 16 0. 13 0. 08 0. 05 0. 03 0. 03 0. 02 0. 01 0. 01 0. 01 As of date 19/03/2012 25/07/2012 7/3/2012 19/03/2012 19/03/2012 19/03/2012 31/12/2010 19/03/2012 31/12/2010 19/03/2012 19/03/2012 19/03/2012 31/12/2010 Financial review VINATRANS Capitalization VNDbn TSO mm Mkt price Total group market cap + Debt + Minority interest – Cash Total Group TEV 59. 0 2,600 153 2,103 8 (43) 2,221 Key Financial & Operating Metrics 2010A 326,015 1,983,003 420,152 21. 2% 121,797 6. % 153,505 624,730 31. 5% 95,538 4. 8% 326,375 3,324,776 2,304,657 707,996 1. 6x 0. 2x 3. 6x 2. 9% 13. 5% 3. 3x 3. 7x 4. 1x VND’mm 2011A YTD Q2-12 2012 Target 264,986 264,986 264,986 1,908,082 794,860 1,643,740 240,284 88,146 NA 12. 6% 11. 1% 128,173 49,144 NA 6. 7% 6. 2% 170,976 77,167 276,808 72,886 14. 5% 9. 2% 51,721 (37,336) 3,945 2. 7% (4. 7%) 0. 2% 164,697 33,885 3,255,538 3,111,493 2,255,603 2,102,631 636,653 617,087 3. 0x -2. 1x 0. 2x 0. 2x 8. 0x 15. 2x 1. 6% (2. 4%) 8. 1% (12. 1%) 3. 5x 8. 1x 1. 6x 3. 4x 14. 4x 0. 9x (1) (1) (VST. VN) Date US$’000 $0. 12 $7,359 $100,868 407 (2,084) $106,551 9/27/2012

    Total capacity (DWT) Revenue Gross profit % m argin SG&A % m argin Interest expenses EBITDA % m argin Net profit % m argin Derpreciation Total Assets Total Debts Shareholders’ equity P/E P/B TEV/EBITDA ROA ROE Leverage ratio D/E Total debt/EBITDA EBITDA/interest expenses 2010A 326,015 101,692 21,546 21. 2% 6,246 6. 1% 7,872 32,037 31. 5% 4,899 4. 8% 16,737 170,501 118,188 36,307 US$’000 2011A YTD Q2-12 2012 Target 264,986 264,986 264,986 92,625 38,132 78,855 11,664 4,229 12. 6% 11. 1% 6,222 2,358 6. 7% 6. 2% 8,300 3,702 13,437 3,497 14. 5% 9. 2% 2,511 (1,791) 189 2. 7% (4. 7%) 0. 2% 7,995 1,626 158,036 149,268 109,495 100,870 30,905 29,604

    Petrovietnam Transportation Corporation (HOSE: PVT) PVT is the leading company in the liquid products transport segment with about 33% market share in terms of tonnage capacity. Its current tankers include 14 vessels under operating with a total 342,000 DWT which serve for transporting of crude oil, oil & gas products, urea and other chemical products oversea and locally. Transportation services segment makes up over 60% of total revenue in 2011. + Crude oil transportation PVT is the only company of PVN operating in the crude oil transportation and oil & gas products transportation sector.

    Having the advantage of being a subsidiary of Petrovietnam Oil & Gas Group (PVN), PVT has been able to maintain stable market. At present, PVT is delivering 100% crude oil of Dung Quat oil refinery plant and transporting 50% of this plant’s outputs including gasoline and other oil-refined products. + Oil products and LPG gas transportation This segment relies on the development of the Dung Quat plant, which is expected to have production of over 5 million tons of oil annual, along with the launch of the Nghi Son plant in 2014 and Long Son plant in 2015.

    PVT currently has a 5-year contract, starting in 2008, with PV Oil and PV Gas, two subsidiaries of PVN, to transport 100% of production from the Dung Quat plant. PV Oil produces roughly 45% of its oil products and PV Gas produces 100% of its liquefied petroleum gas (LPG) at the Dung Quat plant. Through these main customers, PVT enjoys stable stream of revenues. PVT currently has a fleet of 7 ships used to transport oil products and 4 ships used for carrying LPG products from Dung Quat.

    In order to meet rising production volumes from incoming plants, the firm plans on investing in additional twelve oil ships and four LPG ships by 2015. PVT also transports LPG for international players such as Petronas from Malaysia and Daelim from Korea. + Bulk dry transportation: PVT had authorization to transport urea products for DPM and chemical products for DMC. Management noted that the company might invest in an additional 13 vessels by 2015 with a focus on coal. Similar to the oil product segment, the company is also a sole transporter of materials for power plants owned by PVN. FSO/FPSO: PVT put the FSO Kamari ship (134,340 DWT) into stream in 2009. The ship is currently used for exploration activities at Dai Hung oil field and provides floating production, storage and offloading (FPSO) services. Capacity of fleets Year of built NA NA NA NA NA NA NA NA NA NA NA NA NA NA Place of built NA NA NA NA NA NA NA NA NA NA NA NA NA NA Shipping age NA NA NA NA NA NA NA NA NA NA NA NA NA NA Capacity Capacity (DWT) (CBM – M3) 96,174 105,177 NA 8,700 45,888 33,425 16,178 9,045 8,758 9,202 2,999 1,601 1,601 2,999 341,747

    No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Name Hercules M PVT Athena PVT Mecury PVT Dragon PVT Dolphin PVT Eagle PVT Sea Lion Phuong Dong Star PV oil Jupiter PV oil Venus Cuu Long Gas Hong Ha Gas Viet Gas Sai Gon Gas Total Shipping Type Crude oil tanker Crude oil tanker Crude oil tanker Oil product tanker Oil product tanker Oil product tanker Oil product tanker Oil product tanker Oil product tanker Oil product tanker Gas, LPG and chemical carriers Gas, LPG and chemical carriers Gas, LPG and chemical carriers Gas, LPG and chemical carriers ,500 1,800 1,800 3,500 10,600 Ownership structure Capital Structure Petrovietnam Oil & Gas Group (PVN) Petrovietnam Finance J. S. C Asia Commercial Bank VNDIRECT Securities Corp. Ph? m Vi? t Anh Nguy? n Phung Hung D? Van Lien No. of shares holding 135,849,946 19,349,393 9,056,850 3,626,764 130,000 71,680 49,100 % Holding 58. 4 8. 32 3. 89 1. 56 0. 06 0. 03 0. 02 As of date 31/12/2010 31/12/2010 31/12/2010 31/12/2010 9/8/2011 31/12/2010 31/12/2010 PV TRANS (PVT. VN)

    Capitalization V NDbn TS O mm Mkt price Total group market cap + Debt + Minority interest – Cash Total Group TEV 232. 6 4,000 930 4,200 706 (771) 5,065 Key Financi al & Operating Metrics V ND’mm 2010A Total capacity (DWT) Revenue Gross profit % m argin SG& A % m argin Interest ex penses EBITDA % m argin Net profit % m argin Derpreciation Total Assets Total Debts Shareholders’ equity P/E P/B TEV/E BITDA ROA ROE Leverage ratio D/E Total debt/EB ITD A EBITDA /interest expenses 341,747 3,536,102 366,112 10. % 117,406 3. 3% 135,020 672,392 19. 0% 38,848 1. 1% 423,686 7,760,932 4,102,955 2,342,173 23. 9x 0. 4x 7. 5x 0. 5% 1. 7% 1. 8x 6. 1x 5. 0x 2011A 341,747 4, 157,452 393,694 9. 5% 137,887 3. 3% 166,998 662,728 15. 9% 43,272 1. 0% 406,921 8, 028,896 4, 302,875 2, 274,448 21. 5x 0. 4x 7. 6x 0. 5% 1. 9% 1. 9x 6. 5x 4. 0x Y TD Q2-12 2012 Target 341,747 989,116 46,871 4. 7% 38,085 3. 9% 41,569 201,316 20. 4% 9,829 1. 0% 192,530 8,113,207 4,199,810 2,479,215 47. 3x 0. 4x 12. 6x 0. 2% 0. 8% 1. 7x 10. 4x 4. x 341,747 4,115,000 NA NA NA (1) (1) Date US $’000 $0. 19 $44,634 $201,478 33,869 (36,987) $242,994 9/27/2012 U S$’000 2010A 341,747 181,339 18,775 10. 4% 6,021 3. 3% 6,924 34,482 19. 0% 1,992 1. 1% 21,727 397,997 210,408 120,111 2011A 341,747 201,818 19,111 9. 5% 6,694 3. 3% 8,107 32,171 15. 9% 2,101 1. 0% 19,753 389,752 208,877 110,410 YTD Q2-12 2012 Target 341,747 47,451 2,249 4. 7% 1,827 3. 9% 1,994 9,658 20. 4% 472 1. 0% 9,236 389,216 201,478 118,936 341,747 197,409 84,000 2. 0% 4,030 2. 0%

    Vietnam Petroleum Joint-Stock Company (HOSE: VIP) Being one of the leading petroleum transportation of Vietnam and established in 1980, the company has been the member units which have been controlled and held by Vietnam Petroleum Corporation (Petrolimex) The main business activities of the Company include the two activities including petroleum shipping business and petroleum business: + Petroleum business activities: With the advantage of being the member of Petrolimex, the Company has the relatively great in transporting and dealing with petroleum of the Corporation at the market of Hai Phong and Quang Ninh The turnover of petroleum business activities increased from VND670bn in 2010 to VND960bn in 2011, occupying 56% of the total of the turnover. Despite the fact that it is the business with the largest turnover in the total of turnover, petroleum business of the Company just to serve the activities of Vietnam Petroleum Corporation so the profit from this business is small, profits through 2010 and 2011 were in turn VND2bn and VND1bn. + Petroleum shipping activities: As for the importing petroleum shipping market: some of great units take part in the importing shipping market such as VTO, VIP, VOS, Cuu Long, Au Lac.

    In fact, domestic Companies can get about 35% of the importing petroleum quantity, among which VIP occupied about 10% of the share market, VTO occupied about 15% of the share market, and other shipping units such as VOSCO, Au Lac and Cuu Long occupied the remaining of 10% of share market. 65% remaining share market is from foreign ships. VIP has the advantage of transporting for the Corporation so the goods sources of transporting are relatively stable. As for domestic petroleum shipping market: At the time being, the fleet of the company belonging to Petrolimex occupied over 50% of the demands for domestic coastal transporting. The turnover of petroleum shipping of the Company got VND685bn in 2011, occupying about 40% of the total of turnover.

    This activity in 2011 brought about the profits of VND235bn for the company, occupying 90% of the total of the profit and increasing 75% compared with 2010. As for petroleum business activity: this is the activity to serve the activities of Vietnam Petroleum Corporation so the capability of making profit is not considerable and in the next time, there will be no sudden change As for petroleum shipping activity: the fleets of the company only exploits domestic shipping route and serves the needs for import of Vietnam Petroleum Corporation, not exploiting international routes so there is not high capacity of international competitiveness. Therefore, the extension of share market of the Company mainly focuses on domestic routes and imported petroleum shipping.

    Capacity of fleets The company currently has a fleet of 4 tankers with total tonnage transportation of nearly 138,000 DWT, being in second largest oil & gas products in Vietnam behind VTO and also youngest fleet (11. 5 years on average). The utilization rate of fleet is over 90% in 2011. Capacity (DWT) 35,758 37,256 17,961 46,732 137,707 Capacity (CBM – M3) 43,455 44,422 25,072 52,700 165,650 No. 1 2 3 4 Name Petrolimex 06 Petrolimex 10 Petrolimex 15 Petrolimex 16 Total Shipping Type Oil product tanker Oil product tanker Oil product tanker Oil product tanker Year of built 1996 2003 1999 2004 Place of built England Korea NA NA Shipping age 16. 00 9. 00 13. 00 8. 00 11. 50 Ownership structure

    Capital Structure Vietnam National Petroleum Group (Petrolimex) Petrolimex Insurance Corp. Ph? m Van Vinh Nguy? n D? o Th? nh Vu Ng? c Khau Nguy? n Dinh Thanh Ngo Quang Trung Mai Th? Cung Le Thanh H? i Nguy? n Th? Ng? c Lan Le D? c Binh Vu Quang Khanh Nguy? n Van Tam D? ng Minh Thao No. of shares holding 30,503,304 3,461,349 72,420 70,550 56,743 53,713 47,286 35,102 24,120 23,900 23,000 18,286 17,198 5,000 % Holding 51. 42 5. 83 0. 12 0. 12 0. 1 0. 09 0. 08 0. 06 0. 04 0. 04 0. 04 0. 03 0. 03 0. 01 As of date 14/03/2012 14/03/2012 14/03/2012 14/03/2012 14/03/2012 14/03/2012 14/03/2012 14/03/2012 5/11/2007 14/03/2012 14/03/2012 14/03/2012 14/03/2012 6/3/2012 Financial review VIPCO (VIP. VN)

    Capitalization TS O mm Mkt price Total group market cap + Debt + Minority interest – Cash Total Group TEV V NDbn 59. 3 5,900 350 1,021 9 (252) 1,128 Key Financial & Operating Metrics VND’mm 2010A 137,707 1,416,259 246,377 17. 4% 57,852 4. 1% 65,932 351,118 24. 8% 77,125 5. 4% 162,593 2,164,337 1,194,628 852,104 4. 5x 3. 2x 3. 6% 9. 1% 1. 4x 3. 4x 5. 3x 2011A Y TD Q2-12 2012 Target 137,707 137,707 137,707 1, 712,137 270,988 1,397,950 NA 320,720 60,088 18. 7% 22. 2% 58,404 15,336 NA 3. 4% 5. 7% 69,694 12,470 NA 418,604 123,101 24. 4% 45. 4% 54,074 28,937 148,800 3. 2% 10. 7% 156,288 78,349 2, 140,873 2,006,492 1, 101,879 1,021,053 854,957 854,318 6. 5x 6. 0x 2. 7x 2. 5% 6. 3% 1. 3x 2. 6x 6. 0x 4. 6x 2. 9% 6. 8% 1. 2x 4. 1x 9. 9x (1) ( 1) Date US $’000 $0. 8 $16,791 $48,983 432 (12,089) $54,117 9/27/2012 US$’000 2010A 137,707 72,629 12,635 17. 4% 2,967 4. 1% 3,381 18,006 24. 8% 3,955 5. 4% 8,338 110,992 61,263 43,698 2011A YTD Q2-12 2012 Target 137,707 137,707 137,707 83,113 13,000 67,064 15,569 2,883 18. 7% 22. 2% 2,835 736 3. 4% 5. 7% 3,383 598 20,321 5,906 24. 4% 45. 4% 2,625 1,388 7,138 3. 2% 10. 7% 7,587 3,759 103,926 96,258 53,489 48,983 41,503 40,984 Total capacity (DWT) Revenue Gross profit % m argin SG&A % m argin Interest ex penses EBITDA % m argin Net profit % m argin Derpreciation Total A ssets Total Debts Shareholders’ equity P/E P/B TEV/E BITDA ROA ROE Leverage ratio D/E Total debt/EBITD A EBITDA/interest expenses

    Vietnam Tanker Joint-stock Company (HOSE: VTO) Being the greatest petroleum enterprise in Vietnam, at the time being the Company has been the member unit that has been controlled and held by Vietnam Petroleum Corporation (Petrolimex) The main business activity of the Company is marine petroleum shipping business in International and domestic routes. Other commercial activities and other services has only been supportably and occupied the considerable rate in the turnover and profits of the Company. The shipping business activities of the Company have been divided into 2 main groups including fareast shipping and Coastal shipping: + Far-east petroleum hipping activity: With the advantage of the member of Petrolimex, the Far-east shipping sections of the Company mainly transports imported goods for Petrolimex into great ports of Vietnam and transports the exported goods for Petrolimex into Cambodia and takes part in transporting Van Phong bay into Nha Be, Da Nang and B12 (Hon Gai). The turnover of the far-east shipping was VND988bn in 2011, occupying the rate of 60% of the total of the turnover. + Coastal petroleum shipping activity Coastal ships of the Company mainly transport the imported goods from Thailand, Singapore and China into small ports in the country such as Can Tho, Quy Nhon, Nghi Huong (Nghe Tinh). They also included domestic shipping and transporting Van Phong Bay into small ports such as Nha Trang, Quy Nhon. The coastal shipping turnover decreased from VND 169bn in 2010 to VND163bn in 2011 and occupied the rate of about 10% of the total of the turnover.

    The commercial activities are mainly petroleum business that contributes 20% of total turnover. However, gross profit margin of this segment is only around 1% – 2% so that gross profits come from the shipping segment mainly and occupies about 90% normally. In order to expand the shipping activities, at the time being the Company has been researching fareast ships to exploit sources of goods in South-East Asia as well as in the world. With the high stability and rate of growth in petroleum consumption of Vietnam of about 5% per year, the source of goods in the branch of VTO will create the conditions for the Company to keep the share market and actively widen the activities outside the branch and in the region.

    In general, with the advantage of the source of transporting from the Parent Company Vietnam Petroleum Corporation (the greatest petroleum importing and business in Vietnam with the share market of 55%-60% of the demands of importing petroleum nationwide), all ships of VTO focuses on Petrolimex. The sources of transported goods for other ships such Petech and Saigon Petro occupy the small rate because ships only transports for other units in the time of lacking local sources of Petrolimex. However, Dung Quat refinery plant, kicked off from 2009, has been able to satisfy 30% demand of petroleum locally. Therefore, Petrolimex, the greatest petroleum import company, have to decline their import volumes. Capacity of fleets The company currently has a fleet of 11 tankers with total tonnage transportation of nearly 172,000 DWT, being the largest oil products carrier in Vietnam. No. 2 3 4 5 6 7 8 9 10 11 Name Petrolimex Petrolimex Petrolimex Petrolimex Petrolimex Petrolimex Nha Be 01 Nha Be 02 Nha Be 03 Ap Bac 02 Ap Bac 03 Total 04 08 09 11 12 14 Shipping Type Crude oil tanker Oil product tanker Oil/Chemical tanker Oil/Chemical tanker Oil/Chemical tanker Oil product tanker Oil product tanker Oil product tanker Oil product tanker Oil product tanker Gas, LPG and chemical carriers Year of built 1988 2003 2007 2008 2008 2008 1976 1977 1978 1986 1972 Place of built Japan Korea Korea Korea Korea Korea Japan Japan Japan Vietnam Vietnam Shipping age Capacity (DWT) 24. 00 9. 00 5. 00 4. 00 4. 00 4. 00 36. 00 35. 00 34. 00 26. 00 40. 00 20. 9 29,998 37,463 25,400 40,112 13,144 13,144 3,226 2,364 4,793 1,200 1,150 171,994 Ownership structure Capital Structure Vietnam National Petroleum Group (Petrolimex) Sacombank Dam Xuan Tr? ng Luu Van Thang La Van Ut Nguy? n Van H? c Nguy? n Cong D? nh Ph? m Van Truong Nguy? n Ti? n Dung Truong Van Minh No. of shares holding 41,465,217 3,920,000 241,640 211,455 206,647 62,983 47,970 24,930 6,666 5,622 % Holding 52. 58 4. 97 0. 31 0. 27 0. 26 0. 08 0. 06 0. 03 0. 01 0. 01 As of date 3/4/2012 17/11/2009 3/4/2012 3/4/2012 3/4/2012 3/4/2012 3/4/2012 3/4/2012 3/4/2012 3/4/2012 Financial review VITACO (VTO. VN) Capitalization TSO mm Mkt price Total group market cap + Debt + Minority interest – Cash Total Group TEV VNDbn 78. 4,500 355 1,508 (218) 1,645 Key Financial & Operating Metrics VND’mm Total capacity (DWT) Revenue Gross profit % m argin SG&A % m argin Interest expenses EBITDA % m argin Net profit % m argin Derpreciation Total Assets Total Debts Shareholders’ equity P/E P/B TEV/EBITDA ROA ROE Leverage ratio D/E Total debt/EBITDA EBITDA/interest expenses 2010A 171,994 1,352,092 402,153 29. 7% 31,892 2. 4% 121,969 638,884 47. 3% 83,097 6. 1% 268,623 3,066,635 1,875,943 1,031,065 4. 3x 0. 3x 2. 6x 2. 7% 8. 1% 1. 8x 2. 9x 5. 2x 2011A 171,994 1,665,599 438,468 26. 3% 40,019 2. 4% 135,025 654,800 39. 3% 65,998 4. 0% 256,351 2,874,498 1,677,064 1,042,226 5. 4x 0. 3x 2. 5x 2. 3% 6. 3% 1. 6x 2. 6x 4. x YTD Q2-12 2012 Target 171,994 171,994 391,095 1,378,000 65,861 NA 16. 8% 9,144 NA 2. 3% 27,021 NA 185,026 47. 3% 19,615 30,668 5. 0% 128,309 2,706,558 1,507,888 1,020,770 9. 0x 0. 3x 4. 4x 1. 4% 3. 8% 1. 5x 4. 1x 6. 8x (1) (1) Date US$’000 $0. 22 $17,026 $72,338 0 (10,458) $78,905 9/27/2012 US$’000 2010A 171,994 69,338 20,623 29. 7% 1,635 2. 4% 6,255 32,763 47. 3% 4,261 6. 1% 13,776 157,263 96,202 52,875 2011A YTD Q2-12 2012 Target 171,994 171,994 171,994 80,854 18,762 66,107 21,285 3,160 26. 3% 16. 8% 1,943 439 2. 4% 2. 3% 6,555 1,296 31,786 8,876 39. 3% 47. 3% 3,204 941 1,471 4. 0% 5. 0% 12,444 6,155 139,539 129,842 81,411 72,338 50,593 48,970

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