"Cash is king" is a familiar saying that emphasizes the important role of cash in times of economic volatility - Photo: QUANG DINH
Most of the cash is deposited by businesses in banks to earn interest, the interest received is equal to the amount that many other businesses strive for in net profit for the whole year. Some places invest in bonds or keep them in "safes".
The company with the most cash on the stock exchange
The recently released consolidated financial report for the second quarter of 2024 shows that PetroVietnam Gas Corporation (GAS) holds more than VND43,900 billion (more than USD1.72 billion) in cash, an increase of more than VND3,100 billion compared to the end of last year.
This is also the largest amount of cash that this enterprise has ever held and accounts for nearly half of PV Gas' total assets.
Mainly from bank deposits, PV Gas's interest received in the first half of this year was VND830 billion, down nearly 20% over the same period, although the amount of deposits increased. This development is in line with the trend of decreasing interest rates mobilized throughout the banking system from 2023 to present.
Regarding business results, in the first 6 months of this year, PV Gas "pocketed" more than 5,832 billion VND in after-tax profit, down 10% compared to the same period last year. Gross profit in the period still increased, the decrease partly came from the loss of deposit interest.
In the same "family" of oil and gas, Binh Son Refining and Petrochemical (BSR) is also among the top enterprises with the most cash on the stock exchange. At the end of June 2024, BSR's bank deposits reached nearly VND40,000 billion (nearly USD1.6 billion), an increase of more than VND1,800 billion compared to the beginning of the year.
Thanks to a "mountain" of bank deposits, BSR's interest received in the first half of this year reached 640 billion VND, down 16% compared to the same period.
Regarding BSR's deposit balance, it should be noted that by the end of the second quarter, the company's cash equivalents still included 3-month term deposits at OceanBank of more than VND 2,734.7 billion, which are still temporarily suspended from trading.
In the financial statements, BSR's board of directors repeatedly assessed that this amount of money would be transacted again in the future when there are specific regulations from the State Bank. But in reality, year after year, the amount of money is still "hanging" there.
Some oil and gas businesses are still stuck with deposits at OceanBank
Regarding business performance, revenue in the first 6 months of 2024 of BSR - owner of Dung Quat Oil Refinery - reached more than VND 55,117 billion, down nearly 19%; while net profit reached VND 1,883 billion, down 36%.
Mr. Bui Ngoc Duong - General Director of BSR - said that in March and April this year, the factory temporarily stopped production to conduct the 5th general maintenance, so production and consumption output both decreased compared to the same period last year.
In addition, according to BSR, in the second quarter of this year, crude oil and product prices fluctuated complicatedly. Accordingly, crude oil prices decreased from an average of 90.15 USD/barrel in April to 82.61 USD/barrel in June...
Another company belonging to the Oil and Gas Group, PetroVietnam Fertilizer and Chemicals Corporation - PVFCo (DPM), also increased a large amount of interest-earning bank deposits.
Specifically, by the end of the second quarter, the company's total assets reached more than VND 15,700 billion, of which cash and bank deposits accounted for VND 9,700 billion, an increase of more than VND 3,000 billion compared to the beginning of the year.
Similar to BSR, the financial statement explanation for many years of Phu My Fertilizer also mentioned the deposit of hundreds of billions of dong "stuck" at OceanBank.
According to the recently released financial report, Phu My Fertilizer's net revenue in the first 6 months of this year reached 7,378 billion VND, an increase of nearly 5% over the same period last year.
Due to the slower increase in cost of goods sold, Phu My Fertilizer's gross profit recovered significantly. As a result, after-tax profit reached VND503 billion, up 37%.
At Petrolimex, total cash, cash in transit, bank deposits and bond investments reached nearly VND 20,000 billion at the end of June 2024, down nearly 19% compared to the beginning of the year.
Accordingly, interest on deposits and loans received by Petrolimex in the first 6 months reached 511 billion VND, a slight decrease compared to 528 billion VND in the same period.
Statistics based on the financial report of the second quarter of 2024, a series of other enterprises also hold a huge amount of cash, cash equivalents, deposited in banks up to tens of thousands of billions of VND, such as: ACV, Hoa Phat Group, FPT, VEAM, Duc Giang Chemicals, Vinamilk...
According to data from WiGroup, many banks have been raising their deposit interest rates. Small banks have increased their deposit interest rates from 4.5% to 5.15%. State-owned commercial banks have kept their rates at the bottom of 4.68%.
From now until the end of the year, the wave of interest rate hikes will continue, including at large banks. Therefore, financial revenue of enterprises with large deposits is also expected to improve.
Source: https://tuoitre.vn/vua-tien-mat-san-chung-khoan-dau-khi-ap-dao-mang-hang-chuc-ngan-ti-gui-ngan-hang-20240804154751962.htm
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