NVL - Another quarterly loss in Q2; continued bond restructuring

- NVL reported a Q2 2023 net loss of VND153bn (USD6.5mn) vs Q1 2023’s net loss of VND377bn (USD16.0mn) and Q2 2022’s NPAT-MI of VND749bn (USD31.7mn) due to high SG&A and financial expenses.

- In H1 2023, NVL’s revenue from property handovers was VND1.4tn (USD58.5mn; -63% YoY) and accounted for 84% of total revenue. This revenue was mainly from deliveries at Novaworld Phan Thiet, Novaworld Ho Tram and Aqua City. In H1 2023, NVL’s net loss was VND530bn (USD22.5mn) vs H1 2022’s NPAT-MI of VND1.8tn (USD77.5mn).

- Bond restructuring: At end-Q2 2023, NVL’s total debts maturing within 12 months amounted to VND24.3tn (USD1.0bn) with VND13.9tn (USD588mn) of corporate bonds. In H1 2023, NVL reached agreements to (1) delay the principal and interest payments for VND10.9tn of bonds (USD461.4mn) until 2024-2026 and (2) pay the principal and interest of approximately VND600bn of retail bonds (USD25.4mn) with properties developed by NVL.