VN Express reported that Ho Chi Minh City based Vietnamese steel producer Pomina is seeking shareholders’ permission to use VND 450 billion (USD 19.4 million) from its development fund to cover mounting losses. The cash, accounting for 88% of its development fund, would be transferred to its post-tax profit account and used to wipe off the VND202 billion in post-tax losses the company had accumulated as of the end of September this year.
The Ho Chi Minh City Stock Exchange had in April issued a warning to investors about Pomina’s POM shares as the company was yet to address its losses.
Pomina had recorded six consecutive quarter losses in a row before posting a post-tax profit of VND 16.18 billion in the third quarter. Pomina's board said that the construction of a blast furnace last year had financially burdened the company. The furnace, located in the Pomina 3 steel factory in southern Ba Ria-Vung Tau Province, began operations last month and is set to produce high quality products for the construction of airports and roads.