In order to strengthen the connection and transparent and objective information about the operation of PetroVietnam Oil Corporation (PVOIL), on January 23th, 2019, PVOIL held a meeting to discuss with the press in Ho Chi Minh City and Hanoi. Previously, on January 15th, 2019, PVOIL met with representatives of shareholders and investors.
At the meeting, PVOIL's representative informed the representatives of shareholders, investors and press agencies about the company's business activities in 2018 and the orientation of operation 2019. Accordingly, the year 2018 is a turbulent year for world crude oil and petroleum markets, which has had a profound impact on all businesses in the crude oil and oil products sector, including PVOIL. However, PVOIL has overcome difficulties and successfully completed all of the annual plan expenditures. Specifically, PVOIL's consolidated revenue in 2018 was estimated at 57,100 billion VND, equal to 115% of the plan; consolidated profit before tax was estimated at 562 billion VND, equal to 112% of the plan. Especially, in 2018, PVOIL had an important growth in retail channel with retail sales increasing by 8% and retail proportion increasing by 2.1% compared to 2017.
PVOIL President and CEO Cao Hoai Duong speaks during year-end meeting with press
PVOIL’s President and CEO Cao Hoai Duong highlighted two major achievements of the corporation in were that PVOIL was very successful in the initial public auction (IPO) with a 20% stake in 01/2018, and successfully implemented PVOIL Easy program, launched a new service to apply the achievements of the industrial revolution 4.0, bringing a separate competitive advantage of PVOIL compared to other petroleum trading enterprises in the market. PVOIL is the first enterprise to provide customers with solutions for effective fuel management, no need to contact cash in petroleum trading transactions, convenient in management as well as negative restrictions occur. However, in addition to the achieved results, negative fluctuations of world crude oil prices in the last months of 2018, the establishment and use of stabilization fund, increase environmental protection tax but do not increase retail prices has caused a double impact, affecting PVOIL's Q4/2018 profit.
In 2019, PVOIL set a consolidated business plan of 49,000 billion VND and consolidated pre-tax profit of 440 billion VND. PVOIL’s leader said that this is a relatively cautious plan. This plan is builded on the assumption of Brent oil price 2019 of 60 USD/ barrel (down 16.7% compared to the average price in 2018) and the output of gasoline sold increases 3% compared to 2018. Thus, the plan PVOIL's consolidated pre-tax profit in 2019, equal to 78% of the 2018 implementation of 562 billion VND and 88% of the plan for 2018 of 500 billion VND.
PVOIL President and CEO Cao Hoai Duong answers question from reporters during year-end meeting on Jan. 23
At the meeting, PVOIL’s leaders also exchanged frankly and openly about issues of shareholders, investors and press interested in: the process of State divestment in PVOIL, foreign room in the development process State divestment in PVOIL, PVOIL's orientation in developing retail and E5 bio-gasoline trading, impact of exchange rate fluctuations on PVOIL's operation...
Regarding the implementation of the state divestment plan at PVOIL, PVOIL’s President and CEO Cao Hoai Duong said that after a successful 20% stake in IPO in January 2018, PVOIL continued to seek strategic partners by offering 45.4% of shares. After PVOIL became a joint stock company, many investors were interested in becoming a major shareholder of PVOIL such as SK Energy (Korea), Idemitsu (Japan), Vietjet ... PVOIL presented the plan divestments (adjusted) to Vietnam Oil and Gas Group (PVN) to sell 45.4% of shares through public auctions and lots. However, this process is also facing some obstacles due to the adjustment of the regulations that leased land must be included in commercial advantages and included in the enterprise value, there is no implementation guidance, the process of selling shares for strategic partners may be longer than expected.
At the conference, PVOIL’s President and CEO Cao Hoai Duong expressed gratitude to shareholders and investors. In particular, press agencies through the propaganda and objective reflection on PVOIL's business and production activities have contributed to strengthening the brand and image of PVOIL in the market. Mr. Cao Hoai Duong hopes to receive further cooperation from media for objective, accurate news from PVOL to the public./.