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Vietjet holds 2018 AGM

Released at: 17:15, 28/04/2018 BUSINESS SPOTLIGHT

Vietjet holds 2018 AGM

Photo: Vietjet

April 26 meeting approves all matters up for vote, including on increased dividend payments, with handsome 2017 business results announced.

by Ngoc Lan

Vietjet Air (HSX: VJC) held its annual general meeting (AGM) for 2018 on April 26, with 91.74 per cent of shareholders approving all matters raised.

According to a report presented by Vietjet’s Managing Director Mr. Luu Duc Khanh, who spoke on behalf of the Board of Management, the company enjoyed a successful year across all categories.

It increased it fleet in receiving 17 aircraft, including the first A321neo in Southeast Asia, and had the most efficient operating costs in the region. 

Indicators in operational safety and ground operations were also among the highest regionally. The carrier’s technical reliability stood at 99.66 per cent; the highest in Airbus’s A320/321 global fleet.

While continuing its expansion to domestic routes and penetrating markets in North Asia, it was operating 38 domestic routes and 44 international routes as at the end of 2017, connecting major hubs in a part of the world that is home more than a half of the world’s population. 

It operated 98,805 safe flights last year, transporting 17.11 million passengers, a 22 per cent increase over 2016.

Besides increasing international passenger numbers and the number of international charter flights, ancillary services also grew in proportion to flight numbers.

The carrier was pleased to tell the AGM it had surpassed its financial targets. According to its audited consolidated financial statements for 2017, revenue stood at VND42.303 trillion ($1.8 billion) and after-tax profit VND5.073 trillion ($223.8 million), increases of 54 per cent and 73 per cent, respectively, over 2016. Earnings per share was VND11,356 ($0.5).

Vietjet listed its shares on the Ho Chi Minh Stock Exchange (HSX) on February 28, with the Board of Directors’ wholeheartedly committed to applying international standards in corporate governance, management, and information transparency.

On the back of these positive business results, the Board of Directors proposed and received approval from shareholders to increase the dividend payment for 2017 from 50 per cent to 60 per cent. 

It has advanced 30 per cent in cash and will pay another 10 per cent in cash on May 25, with the remaining 20 per cent being paid in shares.

The company has set a target of recording revenue of VND50.970 trillion ($2.2 billion) this year and posting a profit of VND5.8 trillion ($257.7 million), increases of 20.5 per cent and 10 per cent, respectively, compared to targets for 2017. 

The Board of Directors also submitted a proposal to shareholders to increase the dividend payment for 2018 to 50 per cent.

Vietnam and the region’s aviation market is expected to continue growing strongly in 2018, with Vietnam predicted to record its highest GDP growth ever. The government is promoting tourism as a key economic sector that will attract millions of foreign tourists to the country. 

With its expanding fleet and increasing number of new international routes to destinations in countries such as Japan, India and Australia, Vietjet Air is on its way to becoming a multi-national airline with a global vision and competitive capacity.

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