Petrolimex meets with investors ahead of the Group’s listing

Hoang TrungNHD
09:08' SA - Thứ tư, 08/03/2017

(NDH) At a meeting with institutional investors, Petrolimex said it planned to list shares on the HCM Stock Exchange in mid-April. At present, reference price on the first day of listing remains unknown.

Over the weekend, the Vietnam National Petroleum Group (Petrolimex) in conjunction with the Sai Gon Securities Incorporation (SSI) had a meeting with institutional investors. The event attracted the participation of over 100 investors of domestic and foreign investment funds from Europe, the United States, Thailand and Japan.

From left: Chairman of SSI’s Board of Directors Nguyen Duy Hung (the consulting firm’s representative), Chairman of Petrolimex’s Board of Management Bui Ngoc Bao, and Petrolimex’s Chief Accountant Luu Van Tuyen

Foreign investors are currently showing their strong interest in Viet Nam’s biggest petroleum group, the Group’s development potential, growth rate of sales and profits as well as listing routine. Chairman of Petrolimex’s Board of Management Bui Ngoc Bao spent almost three hours providing frank answers to all investors’ questions.

Information from the meeting reveals that Petrolimex plans to list shares on the HCM Stock Exchange in mid-April this year. At present, reference price on the first day of listing remains unknown.

Foreign investors also express their interest in the activities of Petrolimex’s member companies including Petrolimex Petrochemical Corporation, Castrol BP Petco Ltd, and Petrolimex Gas Corporation JSC among others and in the process of reducing the Group’s State ownership.

Addressing representatives from domestic and foreign investment funds, Bao said Petrolimex targets to increase total profit by 10 per cent in 2017 over the previous year. With the assistance from strategic shareholders JX Nippon Oil & Energy which makes up 50 per cent of the market share in Japan and has 100 years of experience, Petrolimex is fully convinced of its sustainable growth prospect in the time come. The Group maintains its position as Viet Nam’s biggest distributor and retailer of petroleum with the aim to gain a turnover of US$10 billion in 2020 and to pay an annual dividend with a payment rate of 12%/share.

At the meeting, foreign investors spoke highly of Petrolimex’s transparency as the Group chooses to list shares on the HCM Stock Exchange (HoSE). Nguyen Duy Hung, Chairman of the Board of Directors of SSI, consulting firm for Petrolimex, said that the Group decided to list shares on the HoSE with an aim to list shares on foreign stock markets indicates that the enterprise is serious about information transparency.

Petrolimex’s Chairman Bui Ngoc Bao said the Group has imported petroleum from suppliers in the world for years, thus, Petrolimex’s corporate management was of international nature from the very beginning. Following privatisation, transparency requirements and management needs upon the expansion of petrol stations were seriously considered. Bao said Petrolimex is one of a few State groups that are capable of completing financial statements as regulated even though the Group has a dense network of member companies with a thousand of petrol stations across the country.

Since 2011, Petrolimex has become the first large-scale State Group to complete the corporate management software system ERP. Concurrently, the supporting management system Egas has enabled the Group to manage every single petrol station, and examine all products as well as currency flow online. The system of quality management follows strict practices is applied throughout all 63 provinces and cities. With the participation of strategic partners, the system will surely meet higher standards and be more internationalised.

At present, PLX’s shares are traded on the over-the-counter (OTC) at a price of over VND41.000/share. Once its shares are listed on the stock exchange, Petrolimex is projected to be among the top 10 enterprises with largest market capitalisation estimated around US$2 billion and to be the biggest turnover earner in the market.

In 2016, Petrolimex earned VND123 trillion (US$5.4 billion) from total turnover and VND6.3 trillion (US$276 million) from pre-tax profit, an increase of 48% over the previous year and 58% of the year target. In 2017, the Group targets to achieve a total turnover of VND163.2 trillion, an increase of 21.8% in turnover and 10% in pre-tax profit over the 2016 target. The Group set all growth goals cautiously and the figures may be subject to change depending on actual situations of the oil price and other objective conditions in the market.

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