AGM 2020: PVOIL strives to overcome difficulties and minimize losses from pandemic Covid-19

On June 8, 2020, in Ho Chi Minh City, PetroVietnam Oil Corporation (PVOIL, HNX: OIL) organized the Annual General Meeting of Shareholders.

The meeting attended by shareholders representing for 939,902,029 shares, or 90.88% of PVOIL's stakes was chaired by Mr. Cao Hoai Duong, Member of the Board of Management, President & CEO together with other members of BOM.

According to the Board of Management, 2019 was a difficult year for major petroleum enterprises. And PVOIL made remarkable efforts to fulfill most of the targets assigned in the year, while continued to implement its long-term development strategic goals of the corporation.

Last year, PVOIL recorded consolidated revenue of VND 80,294 billion, beating whole-year goal by 64%. After-tax profit was reported at VND 347 billion, completing 99% of 2019 whole-year plan.

The corporation submitted VND 11,557 billion to the State budget, exceeding target by 63%. PVOIL sold all of Vietnam's crude oil, provided crude oil to Dung Quat Oil Refinery and ensuring supply of E5 RON92 to meet the market demand.

PVOIL's petroleum retail outlet system made an important achievements in the past year by stabilizing the petroleum distribution system, developing retail channel, improving service quality in petroleum stations as well as getting more corporate customers.

Last year, the petroleum enterprises continued to improve and expand its PVOIL Easy program, which introduce non-cash payment services. In addition, PVOIL integrated with several electronic payment platforms including GotIt, ViettelPay, MoMo, VCBPay, VCB Mobile Banking and 15 banks associated with Vietcombank.

Sales through PVOIL Easy in 2019 was 4 times higher than in 2018, an average of more than 4,000 cu.m each month, or equivalent to the average sales volume of 35 petroleum stations of PVOIL.

In 2020, it is expected that crude oil and petroleum prices will continue to fluctuate unpredictably and the domestic petroleum market will face increasingly fierce competition. The corporation’s 2020 business goal was built on averaged crude oil price of 60 USD per barrel was not taken into account the impact of the Covid-19 pandemic and the decline in oil prices.

PVOIL’s 2020 revenue was targeted at VND 52,220 billion, equal to 65% of 2019's achievement, after-tax profit was projected at VND 376 billion, up 8% from a year earlier.

In the first months of 2020, the Covid-19 pandemic took tolls on the country’s economy with serious impacts in almost sectors. PVOIL has also suffered a double whammy from the pandemic when prices of crude oil, petroleum products plunged sharply along with the falling in sales volume due to low domestic demands.

Despite the unfavorable business conditions, PVOIL proactively applied all of the possible solutions to minimize losses. Overcome the pandemic, PVOIL quickly developed production and business scenarios in the coming months to suit the actual situation in the country and the world.

At the meeting, PVOIL's Board of Management answered several shareholders’ questions. Among the issues, State capital divestment from the corporation received much attention from shareholders. Divestment of PVOIL at PETEC, restructuring PVOIL's member units also received much attention from stakeholders. PVOIL submits to the amendment of the Charter of the Company to supplement the Jet A1 fuel business line.

Representing for PVOIL’s major shareholder PetroVietnam, Mr. Le Xuan Huyen, Vice President
of the group supported contents and reports submitted by PVOIL's Board of Management at the meeting. He praised PVOIL's leaders and employees’ achievements in 2019.

The PetroVietnam leader affirmed that the group will continue to provide support to PVOIL by using its advantages and resources to back PVOIL’s business development. He called supports from other shareholders to help PVOIL overcome difficulties bringing benefits to all of shareholders.

The Annual General Meeting of Shareholders approved contents presented to shareholders at the meeting. The approved documents includes Report on business results in 2019 and plans for 2020, Report on the activities of the Board of Directors in 2019 and the direction and tasks for 2020, Operation report of the Board of Supervisors in 2019 and directions for tasks in 2020, Report on salary and remuneration fund remuneration in 2019 and salary and plan for 2020, Statement of the 2019 audited financial statements; Statement of 2019 profit distribution plan; Statement of selection of financial statements auditing units in 2020; Statement of amendments and supplements to the Charter on organization and operation of PVOIL.

Overview of the meeting


Presiding Committee


Mr. Le Xuan Huyen - Vice President of PVN, who represents the PVN’s stake in PVOIL, speaks at the meeting

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