Vietnam Airlines plans to sell up to 49% of its fully-owned subsidiary, Skypec, a key player in jet fuel distribution.
The airline is embarking on a public auction of its shares, anticipated to occur between now and 2027, as outlined in a recent statement. This move is part of a strategic initiative first announced two years ago, aimed at restructuring the company to recover from previous financial losses.
Skypec stands out as one of Vietnam Airlines’ most successful subsidiaries, alongside its aircraft engineering counterpart Vaeco. Together with Petrolimex Aviation, Skypec dominates the aviation fuel market in Vietnam, supporting all domestic carriers and nearly a hundred international airlines operating in the country.
With a robust storage capacity of 200,000 cubic meters, Skypec services 18 airports across Vietnam, extending its operations to four international airports in South Korea. Last year, the company sold approximately 1.6 million tons of jet fuel, generating revenues of VND35.27 trillion (US$1.33 billion) with an after-tax profit exceeding VND268 billion.
Vietnam Airlines recently marked a significant turnaround, reversing its negative net worth following a government capital infusion of VND7.77 trillion. The government now holds a 47.09% stake in the airline, reflecting a collaborative effort to stabilize the national carrier. As a result, the airline reported a 10% year-on-year increase in revenues, totalling VND58.68 trillion in the first half of the year, with profits before tax soaring by 19.3% to VND6.68 trillion. Who knew a little fuel could fuel such big changes?
What is the main focus of Vietnam Airlines’ recent announcement?
Vietnam Airlines intends to sell up to 49% of its stakes in its jet fuel subsidiary, Skypec, through a public auction between now and 2027 as part of its restructuring plan.
How does Skypec contribute to domestic aviation?
Skypec is a significant player in Vietnam’s aviation fuel supply, operating at 18 airports in Vietnam and servicing nearly 100 international airlines, making it crucial to the country’s air travel infrastructure.
What financial improvements has Vietnam Airlines experienced recently?
Thanks to a government capital injection, Vietnam Airlines has reversed its negative net worth and reported increased revenues and profits in the first half of the year, reflecting a positive turnaround in its financial health.
