Nam Song Hau Oil and Gas has negative cash flow from operations, debt is 5.8 times higher than capital

Inventory accounts for half of total assets, cash falls sharply

According to the consolidated financial report for the fourth quarter of 2023, the company's short-term assets increased sharply from VND 5,503 billion to more than VND 7,000 billion in 2023 alone.

Part of the reason is that short-term receivables increased three times, from VND 455 billion at the beginning of the year to VND 1,441 billion as of December 31, 2023.

Short-term receivables from customers increased 14 times, from 75 billion VND to 1,069 billion VND. Provision for short-term doubtful receivables nearly doubled, from 13 billion VND to nearly 25 billion VND.

The biggest "debtors" of PSH include Long An Lubricant Production Joint Stock Company (VND 382 billion), An Kien Private Enterprise (VND 365 billion), and NSH Go Cong Petroleum Trading and Bonded Port Warehouse Joint Stock Company (VND 178 billion).

In addition, inventory also increased, from VND 4,798 billion at the beginning of the year to VND 5,585 billion at the end of the year - accounting for nearly half of total assets.

It is worth noting that the company's cash decreased nearly 10 times, from VND 235 billion to only VND 24 billion in 2023 alone. In addition, PSH's debt/equity ratio was recorded at 5.8 times.

On the other side of the balance sheet, the company's liabilities increased by VND847 billion, reaching VND9,386 billion. Of which, short-term debt increased sharply, from VND5,359 billion to VND6,690 billion in just one year.

This stems from the increase in long-term financial leasing debt in 2023. As of December 31, 2023, the recorded amount was VND 4,671 billion - 1.8 times higher than at the beginning of the year (VND 2,505 billion).

Q4/2023 business is gloomy

Through the business results, it can be seen that Nam Song Hau Oil and Gas had a rather gloomy fourth quarter. Net revenue from sales and service provision in the quarter decreased to 733 billion VND, only 1/3 compared to the same period in 2022 (2,211 billion VND).

As a result, gross profit in the fourth quarter of 2023 was only 35 billion VND, equal to 1/5 compared to the fourth quarter of 2022 (181.7 billion VND). Cost of goods sold decreased 2.9 times compared to the same period, from 2,029 billion VND to 698 billion VND.

PSH's sales revenue is gloomy, and its financial revenue is also not showing signs of optimism, recording a loss of VND 5.3 billion in the previous quarter, despite financial expenses being 2.3 times higher than the same period in 2022.

In the fourth quarter of 2023, the company's net operating profit recorded a loss of VND 225.2 billion. While in the same period of 2022, it recorded VND 39.8 billion.

By the end of 2023, the company's net revenue recorded 6,094 billion VND - a decrease of 1,261 billion VND compared to the previous year. However, PSH's profit in 2023 recorded 57 billion VND, much better than the loss of 236 billion VND in 2022.

The company's net cash flow from operating activities in 2023 recorded a negative VND1,929 billion, in contrast to VND377 billion in 2022.

As Lao Dong reported, the Hau Giang Provincial Tax Department recently announced a list of taxpayers owing taxes and other revenues to the state budget. Nam Song Hau Petroleum Investment and Trading Joint Stock Company is on this list with a tax debt of more than VND1,185 billion.

Not only involved in scandals about tax debts and misuse of the Petroleum Price Stabilization Fund, Nam Song Hau Petroleum Investment and Trading Joint Stock Company is also continuously late in paying interest on many bond lots worth hundreds of billions of VND.

Source