On May 13, 2016, Vietnam National Petroleum Group (Petrolimex) spokesman Luu Van Tuyen sent the State Securities Commission (SSC) a financial report for the first quarter of 2016 of the Mother Company – Vietnam National Petroleum Group - and a consolidated report for the first quarter of 2016 of the whole Group.
Financial statements are made in line with Vietnamese Accounting Standards and Accounting System stipulated under the Ministry of Finance’s Circulars No. 200-202/2014/TT-BTC dated December 22, 2014, and general accounting principles recognised in Vietnam.
Accordingly, the Petrolimex’s production and business result in the first quarter of 2016 is reported as follows:
1/ Total consolidated revenues(by all Petrolimex’s affiliates and associated firms in all trading businesses: petroleum, gas, lubricants, transportation, design, mechanics, installation, insurance, and others) totaled VND27,540 billion (US$1.23 billion), equal to 72.6 per cent of the same period. The lower profit is reportedly attributed to a decrease of 30.8 per cent of the global crude prices as compared to the first quarter of 2015 (West Texas Intermediate (WTI) averaged $33.63 per barrel in the first quarter of 2016, down from $48.57 per barrel in the same quarter of 2015).
2/ Pretax earnings: VND1,371 billion, reaching 34.6 per cent of the full-year’s target.
(a) Petroleum: Pretax profit from the Group’s petroleum trading activities reached VND658 billion (US$29.2 million), equal to 47.9 per cent of the total gross revenue.
With the amount of goods sold in the domestic market and reexported totaling 2,320 cubic metres, tonnes, equal to 103 per cent as compared to the same period last year (2,255cu.m) (Mazut is measured by tonne); Pretax profit reached VND269/l, kg.
Profit gained from Petrolimex’s petroleum in the first quarter of 2016 stayed stable as planned and maintained the 2015 average in the gross consolidated profit. In the first quarter of 2016, the Group continued assessing and rationalising adequate goods transport routes to reduce transport cost; also in the first quarter, the State adjusted flexibly the Central Rate so emerging financial expenses were low, whereas output in the Q1/2016 closely followed the plan and grew by 3 per cent as compared to the same period….
(b) Trade in non-petroleum products, total pretax profit reached VND713 billion ($57 million), equal to 53.1 per cent of the gross consolidated profit. In which:
- Profit from petrochemicals, asphalt, and chemicals totaled VND195 billion ($8.7 million);
- Profit from gas reached VND 32 billion ($1.4 million);
- Profit from ocean transport, river transport, and road transport reached VND104 billion ($4.6 million);
- Profit from aviation fuel reached VND61 billion ($2.7 million);
- Profit from insurance, and banking reached VND50 billion ($2.2 million);
- Profit from other businesses such as construction, design, infrastructure, informatics, and storage and warehouse, etc and other sources of income reached VND271 billion ($12 million).
(c) The total amount contributed to the State budget in Q1/2016 was VND8,237 billion ($366 million), equal to 117 per cent of the same period last year.
(d) Total net profit was VND1,134 billion ($50.4 million). The percentage of net profit to owner’s capital is 6.5 per cent.
3/ Other contents:
(a) Regarding the issuance of shares to increase charter capital:
In the Q1/2016, upon the Government’s approval of the share issuance plan, the Group organised an extraordinary meeting of shareholders approving the issuance of more shares:
- The total shares issued for strategic shareholders were 8 per cent and at price of no less than VND38,000 ($1.7) per share. At present, the plan to issue shares for the strategic shareholder JX has been approved by the State Securities Commission. The Share Subscription Agreement (SSA) and Strategic Cooperation Agreement (SCA) with the strategic partner JX NOE (JX Nippon Oil & Energy Corporation) have already been signed.
- Dividends will be issued as cash payments and redeemable preferred shares will be issued for existing shareholders at a percentage of 15 per cent after completing the issuance of shares for the strategic partner JX NOE.
(b) Regarding the restructuring plan:
- To further accelerate the mergence of Petrolimex Group Commercial Joint Stock Bank (PG Bank) into Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) in the Q2/2016.
- To continue reducing the Group’s capital in Petrolimex Insurance Corporation (Pjico) and other fields in accordance with the Government Decree No. 09/2009/ND-CP dated February 5, 2009, and Decree No. 71/2013/ND-CP dated July 11, 2013.
(c) Regarding the development of new products: To study and trade new products in line with the Government’s Decision No. 49/2011/QD-TTg dated September 01, 2011 on a roadmap for application of exhaust emission standards to manufactured, assembled and imported brand-new cars and motorbikes; requiring manufactured, assembled and imported brand-new cars to comply with Euro 4 exhaust emission standard from January 1, 2017.