Saigon Ground Services Company terminates contract with Vietjet Air, stock 'hits floor'

Vietjet Air - Ảnh 1. — SGN provides aviation services for airlines - Photo: HONG PHUC

In the morning trading session of April 22, the code SGN of Saigon Ground Services Joint Stock Company continued to have a floor price drop (-6.92%). After two consecutive sessions of full range drop, the market price of SGN returned to the area of 65,900 VND/share.

Also related to SGN, the company has just sent a document to the Securities Commission announcing information about an event that has a major impact on production and business activities.

Specifically, Saigon Ground Services Joint Stock Company said it will terminate the contract to provide full ground services to Vietjet Aviation Joint Stock Company (Vietjet) at Tan Son Nhat International Airport.

The reason given by SGN is that Vietjet will perform ground services at Tan Son Nhat International Airport.

"Based on the current actual production and business situation and forecasts for the end of 2025, the company will develop a production and business plan for 2025, seek new customers and develop new services to increase revenue," said SGN leaders.

Previously, on April 15, Saigon Ground Company approved the signing of a contract and transaction with Vietjet regarding equipment rental and some other services (if any).

The contract and transaction value is less than 35% of the total asset value recorded in the latest audited financial statement of Saigon Ground Services Joint Stock Company.

Regarding business performance, SGN's net revenue last year increased by 4%, reaching VND1,518 billion. Meanwhile, after-tax profit reached VND295.9 billion, up nearly 23%. Although business results have recovered significantly, SGN has not yet regained its "form" compared to the period before the COVID-19 pandemic. In 2019, the company's after-tax profit reached VND378 billion.

According to the annual report, the total number of flights SGN will serve in 2024 is 94,431. However, when mentioning the challenges, SGN also said that airlines are facing many difficulties in cash flow, especially domestic airlines, leading to delayed debt payments, affecting the company's business operations.

The company also said it signed contracts with several new international customers last year. However, the reduction of two major customers such as Vietjet Air and Bamboo Airways could also significantly affect SGN's upcoming revenue.

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BINH KHANH

Source: https://tuoitre.vn/cong-ty-phuc-vu-mat-dat-sai-gon-cham-dut-hop-dong-voi-vietjet-air-co-phieu-nam-san-20250422115852122.htm