Pomina Steel (POM) Posts 16th Consecutive Loss, Equity Negative VND 800B

Overview

Pomina Steel (POM) reported a net loss of over VND 179 billion in Q1/2026, marking the 16th consecutive quarterly loss. Revenue fell 55% year-on-year to VND 466 billion, and shareholders’ equity turned negative by more than VND 800 billion. The company has received a zero-interest loan from Vingroup, but production recovery only began in March 2026.

Key Facts

• Net loss after tax in Q1/2026: VND 179 billion, compared to a loss of VND 159 billion in Q1/2025.
• Revenue in Q1/2026: VND 466 billion, down 55% from VND 1,029 billion in Q1/2025.
• 16th consecutive quarterly loss; cumulative losses reached nearly VND 3,662 billion as of March 31, 2026.
• Shareholders’ equity negative VND 800 billion as of March 31, 2026.
• Total assets: VND 10,201 billion (up 15% from VND 8,864 billion at start of year).
• Total liabilities: VND 11,002 billion (up 16% from VND 9,487 billion).
• Outstanding loans: VND 6,095 billion, including VND 5,376 billion short-term and VND 719 billion long-term.
• Vingroup provided a zero-interest loan; receivables from VinGroup entities: VND 202 billion; payables to VinGroup: VND 773 billion.

What Happened

Pomina Steel (POM) released its Q1/2026 consolidated financial statements, revealing a net loss of over VND 179 billion, the 16th consecutive quarterly loss. Revenue dropped 55% year-on-year to VND 466 billion, which the company attributed to lower sales volume at its subsidiary. However, revenue began to recover in early March 2026 after receiving capital support from Vingroup.

Cost of financial activities fell 14% year-on-year, mainly due to lower foreign exchange losses. Selling expenses surged from VND 379 million to VND 3.4 billion as the subsidiary resumed production in March 2026, incurring related costs. The company also reclassified depreciation expenses from the idle steel billet plant to other expenses to reflect the temporary suspension. Other income declined as Q1/2025 had non-recurring items.

Market Context

POM shares closed at VND 4,000 on April 10, 2026, up 2.5% with volume of 2.8 million shares. The stock trades on HOSE. The steel sector has been under pressure due to weak construction demand and overcapacity. Pomina, once the largest construction steel producer in Vietnam, has been loss-making for 16 consecutive quarters due to ill-timed investments in a blast furnace and EAF projects.

Strategic Significance

The continued losses and negative equity underscore Pomina’s severe financial distress. The zero-interest loan from Vingroup provides temporary liquidity but does not address the structural issues of high debt (VND 6,095 billion) and idle capacity. The company’s ability to resume normal operations and generate positive cash flow remains uncertain. The Vingroup relationship may offer a path to restructuring, but the scale of losses and negative equity suggests a high risk of further dilution or asset sales.

What to Watch

• Q2 2026 revenue and production volume trends, especially from the subsidiary that resumed operations in March.
• Any further capital injections or restructuring plans from Vingroup or other parties.
• Progress on the blast furnace and EAF projects, currently recorded at VND 5,716 billion as construction in progress.
• Debt repayment schedule and ability to refinance short-term loans (VND 5,376 billion).
• Regulatory or exchange notifications regarding potential delisting due to negative equity.