Noi Bai Cargo Terminal Services reported revenue in the fourth quarter of 2020 of 205.6 billion VND, an increase of 11 percent in the same period last year. (Photo cafef.vn)Hanoi (VNS/VNA) – Although the aviation industry was ravaged by the
COVID-19 pandemic, logistics companies at airports still maintained operations.
Noi Bai
Cargo Terminal Services (NCT) reported revenue in the fourth quarter of 2020 of
205.6 billion VND (8.9 million USD), an increase of 11 percent over the same
period last year.
It announced
post-tax profit of 52.5 billion VND, an increase of 5.6 percent. The company
attributed the profit increase to the receipt of a dividend of 7.1 billion VND
from the out-of-business investment.
In the whole
of 2020, the company achieved total revenue of nearly 697 billion VND, down
21.6 percent compared to 2019, and post-tax profit of 206.75 billion VND, down
14.6 percent, up 8 percent compared to the yearly plan. Earnings per share
reached 7,495 VND.
According to
NCT, the COVID-19 pandemic has had a great impact on the aviation industry
and air cargo services. The output of goods to and from Noi Bai international
airport decreased compared to 2019.
The company
always followed market developments and worked closely with other airlines
to maintain operational plans, especially exploiting freight flights.
Saigon Cargo
Service Joint Stock Company (SCS) announced Q4 revenue of about 197 billion VND,
a negligible decrease compared to the same period last year, after-tax profit
reached 128.5 billion VND, down by nearly 5 percent.
For the
whole of 2020, SCS’ revenue reached nearly 693 billion VND, down 7.4 percent,
while post-tax profit touched 464 billion VND, down 7.5 percent compared to
2019. SCS’ gross profit margin decreased compared to the previous year but
was still at a very high level of 78 percent.
According to
a report by Transport Intelligence (Ti), twice in the past decade, the air
transport market has been propelled by inventory re-stocking cycles. These were
boosted by a rapid increase in new export orders growth, which takes place at a
time when the global economy and trade are rapidly developing.
However,
given capacity constraints, it is unlikely that air transport will increase so
strongly next year.
After the
global economy plunged to its lowest levels in April and May of this year, some
cargo stockpiling took place, but the shipping industry witnessed the strongest
increase in volume.
Ti expects
both sea and air freight forwarding to see a strong boost from the industrial
and automotive sectors next year, as well as from the healthcare and medicine
sectors.
Car sales
have fallen by 25-30 percent in the first half of 2020 but are expected to
recover to around 17 percent for the full year.
With the
possibility of launching several vaccines, the volume of air freight will
increase. In September, IATA estimated delivery of a single dose to 7.8 billion
people would fill up 8,000 B747 cargo planes. While other modalities like road
and rail could be used, sufficient air transport capacity is essential for
global rollout, according to the Ti report.
Meanwhile,
the volume of cross-border e-commerce, driven by blockade measures, has
accelerated this year, and will set a strong growth path in the future.
Ti forecasts
that the air freight forwarding market will grow at a compound annual growth
rate (GAGR) of 5.6 percent in the 2020-2024 period and the sea freight
forwarding market will reach a CAGR of 5.2 percent.
The air
transport market has lower growth. Its recovery would depend on the recovery of
the number of passengers, Ti said./.
