VIC announced Q3 2022 NPAT-MI of VND947bn (USD39mn) vs Q3 2021’s net loss of VND377bn (USD15mn) mainly thanks to (1) the on-track delivery and recognition at Vinhomes Ocean Park 2 – The Empire, (2) improvement of the leasing and hospitality segments, and (3) recognition of bulk sales transactions at The Empire and Vinhomes Ocean Park 3 – The Crown resulting in financial income with a total pre-tax gain of VND8.9tn (USD364mn), which more than offset a YoY surge in EBIT losses for the industrial segment.

For 9M 2022, VIC’s underlying EBIT (including property BCC and bulk sales recognized as financial income) was a loss of VND2.5tn (USD100mn; vs 9M 2021’s underlying EBIT of VND8.5tn/USD345mn), which was mainly due to (1) the revenue recognition from the property sales segment only starting to accelerate in September with The Empire’s scheduled handovers, and (2) the recognition of the accelerated depreciation of assets related to the ending of internal combustion engine (ICE) vehicle production amounting VND4.2tn (USD171mn) in 9M 2022, which were partly offset by (3) the improved operational performance of the leasing and hospitality segments and (4) YoY higher divestment gains in 9M 2022.  

As of end-Q3 2022, VIC’s total debt was VND182.5tn (USD7.4bn) — 36.9% of which was USD-denominated debt. The foreign exchange (FX) loss in 9M 2022 was VND3.2tn (USD130mn), accounting for 36.5% of 9M 2022 PBT. According to management, there is a limited amount of USD-denominated debt maturing in the next 12 months. 

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