Steel producers report strong growth in profits despite COVID-19

Steel producers report strong growth in profits despite COVID-19.

Despite disruptions caused by the fourth wave of the COVID-19 pandemic, steel producers still reported extraordinary profits.

In its third-quarter financial report, Hoà Phát Group (HPG) posted a rise of 56 per cent year-on-year in revenue to VNĐ38.9 trillion (US$1.7 billion), resulting in record profit after tax of VNĐ10.35 trillion, 2.7 times higher compared to last year.

As of September 30, the leading steel producer recorded revenue of over VNĐ105.8 trillion, up more than 60 per cent. Its profit after tax jumped 200 per cent over last year to VNĐ27.1 trillion, which exceeded 45 per cent of the year’s plan.

In the past nine months, Hoà Phát produced 6.1 million tonnes of crude steel, up 50 per cent over the same period last year. Sales of steel products reached 6.3 million tonnes during the period, up 43 per cent. Of which, construction steel sales rose 12 per cent to 2.8 million tonnes, while hot rolled coil (HRC) sales reached nearly 2 million tonnes.

Tiến Lên Steel Group (TLH) also reported outstanding performance last quarter.

Even though the company’s consolidated net revenue increased 1.5 per cent year-on-year to nearly VNĐ909.4 billion, its profit after tax surged more than 8.3 times to VNĐ105.5 billion.

Tiến Lên Steel Group said that the rise in revenue was driven by higher steel prices, while low inventories resulted in a sharp drop in the cost of goods sold. During the period, the company also minimised a number of expenses, leading to a sharp gain in net profit.