Saigon Railway achieves record profits.

Saigon Railway Company reported a net profit of VND 43 billion in the third quarter, an increase of nearly 130% compared to the same period last year, and a record quarterly profit to date.

According to the third-quarter financial report of Saigon Railway Transport Company (SRT), net revenue reached over 440 billion VND, a 13% decrease compared to the same period in 2022. However, the company's after-tax profit increased by 129% to 43 billion VND. This is also the highest quarterly profit in the company's history.

For the first nine months of the year, SRT recorded nearly VND 1,400 billion in net revenue and VND 81 billion in after-tax profit, representing increases of 11% and 110% respectively compared to the same period last year. This result means the company has achieved 77% of its revenue target and significantly exceeded its annual profit target (VND 600 million).

Railway staff check passenger information before boarding a train departing from Saigon station on October 13. Photo: Quynh Tran — Railway staff check passenger information before boarding a train departing from Saigon station on October 13. Photo: *Quynh Tran*

According to the company, in the first nine months of the year, the demand for travel from domestic and foreign tourists increased significantly, especially during the Lunar New Year of the Rabbit and the summer of 2023. Therefore, the company's revenue from passenger and cargo transportation in the first nine months of the year saw strong growth compared to the same period last year.

Despite recording record profits in the third quarter, the overall financial picture of Saigon Railways (SRT) remains bleak. As of September 30th, SRT still had accumulated losses of nearly 312 billion VND, the result of nine consecutive quarters of losses during the pandemic period (2020-2022).

As of the end of September, SRT's total assets were over VND 1,080 billion, a decrease of 12% compared to the beginning of the year, while its liabilities were nearly VND 900 billion, a decrease of 20% compared to the beginning of the year.

At the close of trading on October 27, the stock was priced at 5,000 VND, a slight increase of 1% compared to the beginning of the year.

Saigon Railway Transport (SRT) is a member of Vietnam Railways Corporation (VRN) with a 78.44% ownership stake. The company manages routes from Saigon to Hanoi, Nha Trang, Tuy Hoa, Da Nang, Hue, Vinh, Lao Cai, Hai Phong, Lang Son, etc., and organizes tourist tours to scenic spots throughout the country.

Previously, Hanoi Railway (HRT) - a member of VRN - also reported a record profit of over 54 billion VND in the third quarter, more than three times higher than the same period last year. However, the company still has accumulated losses of over 285 billion VND, a consequence of a series of losses for 11 consecutive quarters prior to that.

Hong Chau

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