Vietnam-based steel producer Hoa Phat Group has announced its financial results for the second quarter and the first half of the current year.
For the second quarter, the company has reported a net profit of VND 3.32 trillion ($131.89 million), compared to a net profit of VND 1.45 trillion in the same period of last year, while its sales revenue totaled VND 39.94 trillion ($1.59 billion), up by 34.0 percent year on year.
In the first half this year, the company recorded VND 71.03 trillion ($2.82 billion) in revenue and VND 6.19 trillion ($245.55 million) in net profit.
Hoa Phat’s total construction steel output in the given quarter amounted to 1.27 million mt, up by 33.0 percent quarter on quarter, while hot rolled coil consumption went down by 10.0 percent quarter on quarter from 805,000 mt to 724,000 mt. Meanwhile, HRC prices in the Vietnamese market decreased continuously from March to the end of the second quarter. Hot rolled coil output also decreased by 10.0 percent in the given quarter, compared to the first quarter this year, due to difficulties in consumption in both the domestic and export markets. These factors made construction steel consumption the driving force for Hoa Phat's revenue growth in the quarter, offsetting the decline in revenue from HRC products.