The two largest airports in the country will help the Airports Corporation of Vietnam (ACV) potentially earn a net profit of over 1,700 billion VND this year, while other airports are all incurring losses.

The above information was shared by ACV leaders at a recent seminar introducing investment opportunities in Vietnam Airlines Corporation (ACV). According to ACV's General Director, Le Manh Hung stated that out of the 22 airports managed by ACV, only Noi Bai and Tan Son Nhat are profitable, while the rest are operating at a loss, based on the 2014 audit results.

Tan Son Nhat Airport. (Image source: Internet)

Smaller airports have poor financial results due to consistently low passenger numbers and sluggish operations. For example, Chu Lai Airport (Quang Nam province) has a designed capacity of 500,000 passengers per year but only achieved just over 8% of its capacity, resulting in a revenue of only 3.57 billion VND in 2014. Similarly, Can Tho International Airport only achieved over 15% of its designed capacity of 2 million passengers, bringing in revenue of 34 billion VND. Several other airports such as Ca Mau, Rach Gia, Tuy Hoa, Dien Bien, Dong Hoi, Lien Khuong, Phu Quoc... also only achieved operating capacity of 11-37%.

ACV manages, coordinates operations, and invests in the exploitation of a system of 22 civil airports nationwide, including 7 international airports with a total designed capacity of nearly 70 million passengers per year. In 2014, the company's total revenue reached VND 10,569 billion, and after-tax profit was VND 2,437 billion.

BSC Securities Company forecasts that in 2015, ACV's net revenue could reach VND 10,130 billion, and after-tax profit VND 1,719 billion. The projected revenue and profit growth rates for the 2015-2020 period are 7% and 9%, respectively. However, after six months, the parent company's profit decreased sharply compared to the same period last year. Chairman Nguyen Nguyen Hung attributed this to the allocation of VND 1,800 billion for the construction of Noi Bai T2 terminal. In reality, depreciation costs significantly impact a company's profits.

ACV is planning an IPO, auctioning 77.8 million shares (3.47% of charter capital) to the public at a par value of VND 11,800 per share. The company is also seeking a strategic investor to sell 20% of its shares. The corporation currently has a charter capital of approximately VND 22,430 billion, of which the State holds 75%.

According to Vn Express