"Cash is king" is a familiar saying that emphasizes the crucial role of cash in times of economic volatility - Photo: QUANG DINH
Most businesses deposit their cash in banks to earn interest, with the interest earned often equaling the net profit many other businesses strive for in an entire year. Some invest in bonds or keep the money in a safe.
The company with the most cash on the stock exchange.
According to the recently released consolidated financial report for the second quarter of 2024, Vietnam Gas Corporation - PV Gas (GAS) holds over 43,900 billion VND (over 1.72 billion USD) in cash, an increase of over 3,100 billion VND compared to the end of last year.
This is also the largest amount of cash the company has ever held, accounting for nearly half of PV Gas's total assets.
Primarily holding deposits in banks, PV Gas's interest income for the first half of the year was 830 billion VND, a decrease of nearly 20% compared to the same period last year, despite an increase in the amount of deposits. This development is in line with the downward trend in deposit interest rates across the banking system from 2023 to the present.
In terms of business results, PV Gas "pocketed" over 5,832 billion VND in after-tax profit in the first six months of this year, a 10% decrease compared to the same period last year. Gross profit during the period still increased, with the decrease partly due to a loss of interest income from deposits.
Along with other companies in the oil and gas sector, Binh Son Refinery and Petrochemical ( BSR ) is also among the top companies with the most cash on the stock exchange. At the end of June 2024, BSR's bank deposits reached nearly 40,000 billion VND (almost 1.6 billion USD), an increase of more than 1,800 billion VND compared to the beginning of the year.
Thanks to its substantial bank deposits, BSR's interest income for the first half of the year reached 640 billion VND, a 16% decrease compared to the same period last year.
Regarding BSR's deposit balance, it's worth noting that as of the end of Q2, the company's cash equivalents still include a 3-month time deposit at OceanBank of over VND 2,734.7 billion, which remains temporarily suspended from trading.
In the financial report's explanatory notes, the BSR board of directors repeatedly stated that this money would be traded again in the future when specific regulations from the State Bank of Vietnam were in place. However, in reality, year after year, the money remains "stuck" there.
Some oil and gas companies are still stuck with deposits at OceanBank.
Regarding business performance, BSR - the owner of Dung Quat Refinery - achieved revenue of over VND 55,117 billion in the first six months of 2024, a decrease of nearly 19%; while net profit reached VND 1,883 billion, a decrease of 36%.
Mr. Bui Ngoc Duong, General Director of BSR, said that in March and April this year, the plant temporarily suspended production to carry out its 5th comprehensive maintenance, resulting in a decrease in both production and consumption compared to the same period last year.
In addition, according to BSR, crude oil and product prices fluctuated significantly in the second quarter of this year. Specifically, crude oil prices decreased from an average of $90.15/barrel in April to $82.61/barrel in June…
Another company belonging to the Petroleum Group, the Petrochemical Fertilizer and Chemicals Corporation - PVFCo (DPM), also increased its deposits in banks to earn interest.
Specifically, as of the end of the second quarter, the company's total assets reached over 15,700 billion VND, of which cash and bank deposits accounted for 9,700 billion VND, an increase of more than 3,000 billion VND compared to the beginning of the year.
Similarly to BSR, Phu My Fertilizer's financial statement notes for many years have also mentioned hundreds of billions of dong in deposits "stuck" at OceanBank.
According to the recently released financial report, Phu My Fertilizer's net revenue in the first six months of this year reached VND 7,378 billion, an increase of nearly 5% compared to the same period last year.
Due to the slower increase in the cost of goods sold, Phu My Fertilizer's gross profit recovered significantly. As a result, after-tax profit reached VND 503 billion, an increase of 37%.
At Petrolimex , total cash, cash in transit, bank deposits, and bond investments reached nearly VND 20,000 billion at the end of June 2024, a decrease of nearly 19% compared to the beginning of the year.
Accordingly, Petrolimex's interest income from deposits and loans in the first six months reached 511 billion VND, a slight decrease compared to 528 billion VND in the same period last year.
Statistics based on Q2 2024 financial reports show that a number of other businesses also hold very large amounts of cash and cash equivalents deposited in banks, reaching trillions of VND, such as: ACV, Hoa Phat Group, FPT, VEAM, Duc Giang Chemicals, Vinamilk...
According to data from WiGroup, many banks have been raising deposit interest rates. Smaller banks have increased their rates from 4.5% to 5.15%. Meanwhile, state-owned commercial banks have maintained their rates at the lowest level of 4.68%.
From now until the end of the year, the wave of interest rate hikes will continue, including by major banks. Therefore, the financial revenue of businesses with large deposit volumes is also expected to improve.
Source: https://tuoitre.vn/vua-tien-mat-san-chung-khoan-dau-khi-ap-dao-mang-hang-chuc-ngan-ti-gui-ngan-hang-20240804154751962.htm
