A Vietnam Airlines plane takes off from Noi Bai International Airport in Hanoi. Photo courtesy of Vietnam Airlines
Vietnam Airlines’ HVN would be delisted if the flag carrier continues to report a loss or negative equity this year, the Ho Chi Minh Stock Exchange (HoSE) has warned.
The ticker is tight after Vietnam Airlines posted equity of VND2.16 trillion ($91.8 million) in the first quarter and losses for the past two years.
Under current regulations, a company will have its ticker delisted if it reports losses for three consecutive years, or if its cumulative losses exceed share capital, or if its equity is negative.
As of June 30, Vietnam Airlines’ shareholders’ equity was negative VND4.9 trillion ($209 million), with liabilities exceeding assets by VND36.435 trillion and delinquencies at over VND14.85 trillion.
The national carrier was targeting revenues of VND 45.2 trillion and pre-tax losses of VND 9.3 trillion for 2022.
In a statement sent to the HoSE, he said he would restructure his portfolio and issue shares to increase his capital.
Last year, Vietnam Airlines avoided delisting after issuing 800 million free shares worth VND 8 trillion.