VOS – Brief – [NONRATED] – Swings to Profitability

Elevated freight rates vs. low utilization and rising fuel costs

• In 1Q26, VOS reported VND709bn revenue (-26% QoQ, +53% YoY), and swung back to profitability with a GP of VND39bn. In particular:
• Commercial segment: revenue stood at VND110bn (16% of total revenue, -60% YoY) with a modest GP of VND1bn.
• Shipping: revenue soars to VND599bn (84% of total revenue, -3% QoQ, +30% YoY) buoyed by rates rally (spot/TC Supramax dry bulk rates up +50%/+22% yoy; MR tanker rates up +47%/+35% yoy). However, a 49% YoY increase in fleet tonage, likely due to Iran war disruptions, coupled with a 15% yoy rise in fuel prices, compressed shipping GPM to 6.5% (-9.5%p qoq, +14.0%p yoy).
• Financial expenses doubled, driven by heavy fleet investments and the high-interest-rate environment.
• Net profit came in at VND4bn, recovering significantly from the VND54bn loss in 1Q25.

Strong 2Q26F outlook as rates remain elevated

Average Supramax dry bulk rates for 2Q26F are implied to be 69% yoy higher based on Week-19 forward contracts on the Baltic Exchange. As energy supply chain disruptions ease, we expect VOS to improve vessel utilization and capture higher GPM.