Vosco's (VOS) profits projected to plummet in 2025

Vosco's (VOS) profits projected to plummet in 2025

Vosco's projected net revenue for 2025 is nearly VNĐ2.9 trillion (US$109.2 million), marking a staggering 48 per cent decrease compared to 2024.

A Vosco vessel. The decline in profit is predominantly driven by a notable drop in the service trading sector. — Photo vosco.vn

Vietnam Ocean Shipping Joint Stock Company (Vosco) is facing a significant downturn in profitability for 2025, primarily attributed to a sharp decline in coal trading revenue, weakened freight rates and increasing depreciation costs.

According to a recent analysis report by Vietcap Securities, Vosco's projected net revenue for 2025 is nearly VNĐ2.9 trillion (US$109.2 million), marking a staggering 48 per cent decrease compared to 2024. 

This decline is predominantly driven by a notable drop in the service trading sector, particularly in coal import transactions, a once vital revenue stream for Vosco during the challenging maritime transport period of 2023-2024.

In the first nine months of 2025, Vosco's trading revenue plunged by 75 per cent year-on-year, as the company has been unable to secure large-scale coal contracts that had previously bolstered its financial performance. 

This has severely impacted overall company revenue, despite early signs of improvement in its core transport business starting in the second quarter of 2025.

Vosco's profitability will be further affected by increasing depreciation costs associated with newly acquired vessels and declining shipping rates. 

Vietcap forecasts that the company’s profit before tax for 2025 will only reach around VNĐ128 billion, reflecting a 69 per cent drop from the previous year. 

Consequently, the profit before tax margin is projected to decrease by approximately 3 percentage points, indicative of the necessary tough adjustment phase during the fleet restructuring process.

However, the mid-term outlook for Vosco appears to brighten. It is anticipated that in 2026, net revenue will rebound to nearly VNĐ4.1 trillion, a 42 per cent increase over 2025. 

This growth is expected to stem from the effective deployment of new vessels and a rejuvenated fleet, enhancing both transportation capacity and rental rates.

The service trading segment is also expected to regain its growth trajectory as Vosco participates in additional bidding packages for transport and coal supply. 

The company estimates that the total value of bids in which it will engage could reach approximately VNĐ5 trillion in the fourth quarter of 2025, laying the groundwork for subsequent revenue recovery. 

Another notable factor is Vosco's plan to divest its 'Vosco Unity' vessel. Vietcap cautiously anticipates that this divestment will occur in 2026 at an estimated price of VNĐ250 billion, equivalent to the starting price in the auction. 

If executed as planned, profits from this asset liquidation could contribute significantly to earnings, pushing profit before tax for 2026 to about VNĐ273 billion, a 113 per cent increase compared to 2025. 

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