PetroVietnam Gas Corporation (PV Gas) is targeting 55.7 trillion VND (2.47 billion USD) in its total revenue and 6.43 trillion VND in pots-tax profit for 2018 (Photo: qdnd.com.vn)

Hanoi (VNA) – The PetroVietnam Gas Corporation (PV Gas), a subsidiary of  the Vietnam Oil and Gas Group (PetroVietnam), is targeting 55.7 trillion VND (2.47 billion USD) in its total revenue and 6.43 trillion VND (283.2 million USD) in post-tax profit for 2018, heard the company’s annual shareholder meeting last week.

In addition, PV Gas also plans to pay a 40 percent dividend payout ratio for 2018 performance.

The figures were largely lower than the firm’s earnings in 2017, which were recorded at 66 trillion VND in total revenue and 9.94 trillion VND in post-tax profit.

The full-year earnings were forecast based on the firm’s assumption of crude price trading at 50 USD a barrel.

Such strong growth of oil prices helped PV Gas and other local energy firms earn high results in 2017.

PV Gas’ earnings in 2017 beat its full-year forecast by 28 percent in total revenue and 89 percent in post-tax profit.

That was also the reason for PV Gas to increase its cash dividend payout rate for 2017 performance by a third to 40 percent.

PV Gas continued to see strong growth in the first quarter of 2018 as its net revenue in the first three months rose 12 percent year on year to more than 18 trillion VND and was equal to a third of the full-year target.

Its first-quarter post-tax profit increased by a fifth from the previous year to 2.6 trillion VND, equal to 40 percent of the year’s target.

PetroVietnam will cut its ownership in PV Gas down to 45 percent. The company is looking for potential investors and reports the list of investors to the Government. The deal will not be finalised in 2018.

At the annual shareholder meeting, PV Gas also asked for shareholder approval on the company’s construction of Nam Con Son 2 gas pipe with the adjusted investment of 6.48 trillion VND, of which PV Gas will fund 30 percent and borrow 70 percent from other institutions. The project is planned to complete in the third quarter of 2020.-VNA