PV GAS’s reports post-tax profit of 259 mln USD in nine months

Hanoi (VNA) - PetroVietnam GAS Corporation JSC (PV GAS), a subsidiary of the Vietnam Oil and Gas Group (PetroVietnam), raked in over 6 trillion VND (over 259 million USD) of post-tax profit in the first nine months of the year, exceeding the target set for the period by 27 percent.

The firm’s revenue was estimated to reach nearly 49.5 trillion VND (2.1 billion USD) in the last three quarters, exceeding the target by 7 percent. Meanwhile, the pre-tax profit was estimated at 77.57 trillion VND, 28 percent higher than the set plan.

Despite facing many disadvantages due to impacts caused by the COVID-19 pandemic, PV GAS still completed most of the main targets of the nine-month plans assigned by PetroVietnam. Its production and financial targets exceeded the set plans by between 3-51 percent, and between 7-64 percent, respectively.

In the last three quarters, PV GAS received more than 6.9 billion cubic metres of wet gas to produce nearly 6.8 billion cubic metres of dry gas, 44,500 tonnes of condensate gas and 1.45 million tonnes of liquefied petroleum gas (LPG).

The corporation has also completed the two targets of LPG production and business and State budget contribution.

It contributed an estimated 3.5 trillion VND to the State budget in the reviewed period, up 64 percent compared to the nine-month plan and completing the whole year’s target.

The firm forecasted its total revenue in 2020 will fall to 66.16 trillion VND and post-tax profit will be halved to 6.63 trillion VND. The company plans to pay a dividend rate of 30 percent.
PV GAS recently has decided it would sell its stake in the Southern Gas Trading JSC (PV Gas South).

The firm is now the biggest shareholder at the Southern Gas Trading with a 35.26 percent stake.

Southern Gas Trading is listing 50 million shares on the Hanoi Stock Exchange (HNX) with code PGS.

PGS soared 5.3 percent to end October 5 at 15,900 VND apiece following the news. At that price, the stake of PV GAS at the Southern Gas Trading JSC is worth 280 billion VND.

The company’s share price has fallen nearly a half from its one-year high of 32,000 VND apiece reached in October 2019.

PV GAS shares, listed on the Ho Chi Minh Stock Exchange as GAS, edged up 0.8 percent to 72,500 VND apiece at the end of October 5.

PV GAS’s divestment plant was determined after the company previously failed to increase its stake in the Southern Gas Trading JSC.

In October 2019, PGS planned to sell 16.1 million shares for 23,409 VND per share, valuing the deal at 377 billion VND, to PV GAS to raise funding for its production and trading activities.

If the deal had been done, PV GAS would have upped its ownership in the Southern Gas Trading to 51.03 percent or 33.7 million shares.

PV GAS then could have been the parent company. But the deal was rejected by the Southern Gas Trading’s shareholders at the annual meeting on October 29, 2019.

PGS sells liquefied and compressed natural gas (LNG and CNG). The company takes a 35 percent market share in selling LPG in the South and Southern Central Region.

The company has recently acquired the Vietnam Gas Tank Co, which now produces a total of 379,000 tanks a year.

PGS also supplies CNG for the southern region with a wide range of customers working in different sectors, including materials and consumer segments.

In 2019, PV Gas South earned a total 6.38 trillion VND worth of revenue, fulfilling 97 percent of the year’s plan. Pre-tax profit in 2019 was 93 billion VND, equal to 90 percent of the year’s plan.

In the first half of 2020, the spread of coronavirus around the globe made PV Gas South suffer a post-tax loss of 20 billion VND./.