PVOIL Chairman calls for ensuring business efficiency during virtual AGM

On April 27th, 2023, PetroVietnam Oil Corporation JSC (PVOIL) successfully held the 2023 Annual General Meeting of Shareholders which was organized online. The virtual meeting received the participation of shareholders representing 948,277,458 shares, accounting for 91.69% of total voting shares.

Mr. Cao Hoai Duong, Chairman of the Board of Management, PVOIL President & CEO Doan Van Nhuom, and members of the Board of Management - Mr. Le Van Nghia and Mr. Tran Hoai Nam chaired the meeting.

At the AGM, PVOIL leaders reported 2022 business results, plans for 2023, and other contents.

According to reports presented at the meeting, after an extraordinary year of the global and domestic petroleum markets, PVOIL minimized losses since it could grasp opportunities to optimize profits in the first 6 months of the year and limit damage in the third quarter. The achievements enabled PVOIL to exceed 2022 operation and business targets. Which, the important targets including output, revenue, and profit have all been completed far beyond the annual plan and set new record milestones for the Corporation.

In 2022, PVOIL’s petroleum consumption volume reached a record level (4,048 thousand m3/ton), completing 129% of the year plan and increasing by 28% against 2021. Sale volume of retail channel rose by 32% over the same period.

The Corporation’s 2022 consolidated revenue reached 104,833 billion VND, completing 233% of the whole-year plan, up 80% from a year earlier. Revenue of the parent company reached 73,742 billion VND, completing 273% of the plan and increasing 121% over the same period.

Consolidated pre-tax profit reached 912 billion VND, reaching 182% of the whole-year plan; in which, the parent company’s pre-tax profit reached 657 billion VND, reaching 164% of the plan decided earlier.

Regarding the business targets for 2023, in the context of the global economic downturn, geopolitical uncertainties, unstable consumption demand, and unpredictable oil prices, PVOIL targets 2023 total consolidated revenue at 50,000 billion VND; consolidated pre-tax profit at 600 billion VND. The business plan is based on an oil price forecast of 70 USD/barrel.

In the first quarter of 2023, PVOIL’s petroleum consumption maintained a high growth rate with output reaching 1,111 thousand m3/ton, up 27% over the same period, completing 34% of the whole-year plan. Total revenue in the reviewed quarter reached 19,000 billion VND, fulfilling 38% of the 2023 whole-year plan; consolidated pre-tax profit reached 270 billion VND, reaching 45% of the plan. In the first three months of 2023. PVOIL installed 31 new petroleum stations, bringing the total number of operating retail outlets to 685.

Also at the meeting, participants discussed issues of concern to shareholders such as: Will business output in 2023 remain as good as in 2022; The reason for PVOIL to lower growth targets in 2023; How does cooperation with Vinfast contribute to PVOIL’s revenue and profit; How does PVOIL assess the development of electric vehicles in Vietnam and PVOIL's response to the ongoing energy transition trend; Comments of PVOIL on the amendment of Decree 95/2021/ND-CP; When does PVOIL plan to list shares on HOSE; Does PVOIL have any solution to soon remove OIL stock from warning list; petroleum station development plan for 2023; Will PVOIL plan to increase the number of petroleum stations by acquiring small petroleum stations that are operating in moderation; Prospects of petroleum market demand in the coming time; Petroleum consumption demand in the country in 2023 and in the next 5 years...

Growth of petroleum sale volume is important for PVOIL. However, in the current conditions, the growth of output should comply with ensuring business efficiency. PVOIL should not grow at all costs, said Chairman Cao Hoai Duong.

This year, PVOIL will increase the purchase of domestic petroleum products. Currently, about 70% of the petroleum supply for the domestic market comes from Dung Quat Oil Refinery and Nghi Son Refinery and Petrochemical Plant, he added.

The total volume of petroleum purchased by PVOIL from the two refineries accounts for 70-80% of the total input source of PVOIL, playing a very important role for PVOIL. Buying petroleum from domestic plants has more advantages than importing from abroad to Vietnam.

Specifically, the purchase surcharge from domestic oil refineries is offered by BSR/PVNDB on the principle of being suitable for the market and competing with imported goods. The volume of shipments received from domestic oil refineries is quite small, so they can be sent directly to the consumption warehouses and the time to receive and bring goods to PVOIL's warehouses is much shorter than that of imported goods.

Meanwhile, the volume of an imported shipment is often large and not all warehouses can receive it, leading to additional costs for moving to the warehouses for consumption. Therefore, the purchase of goods from domestic factories helps to reduce costs and minimize the risk of price fluctuations when the State increasingly shortens the operating cycle of domestic gasoline retail prices... As expected in the next 5 years, PVOIL continues to focus on purchasing petroleum products from two domestic refineries.

Responding to shareholders questions about the high growth of revenue in 2022, but the profit was equivalent to 2021, PVOIL leaders affirmed that the Corporation was one of the bright spots in the petroleum business market in 2022 when overcame a different, extremely difficult year.

From September to November 2022, the supply in the market was scarce, the cost of imports is high, and many petrol and oil companies make such losses that they have to withdraw from the market. Meanwhile, with the effective implementation of response solutions and making good use of the important advantage of being a link in the value chain of Vietnam Oil and Gas Group, PVOIL has ensured the supply in the system while ensuring the whole-year business performance.

PVOIL President & CEO Doan Van Nhuom said that in 2022 the Corporation installed 54 new stores and this year it is expected to develop 58 stores, bringing the total number of retail outlets to at least 700 in 2023.

In the strategy of PVOIL, it continues to steadfastly promote the development of petrol stations to expand its market share, in which the acquisition of petrol stations is a solution that is being accelerated.

PVOIL is one of the petroleum businesses that paid interest early and take the lead in adapting to the current strong energy shift. After signing a cooperation contract with Vinfast, in July 2022, there have been nearly 300 PVOIL petroleum stations combined with Vinfast's charging stations, revenue, and profit are contributing an important part in retail activities at the retail system. PVOIL continues to consider expanding cooperation with Vinfast as well as other partners to build charging stations at the retail outlets, aiming to serve a variety of customers.

At the AGM, shareholders approved all the reports and submissions presented by the Board of Management. In which, in order to accumulate profits to satisfy one of the conditions for PVOIL shares to be listed on HOSE is “no accumulated loss” on the financial statements, and at the same time ensure the interests of shareholders. The General Meeting of Shareholders also approved the profit distribution plan with the dividend payment in 2022 at the rate of 2%.

The General Meeting of Shareholders also voted to elect members of the Board of Management and Supervisory Board for the term 2023 - 2028. Specifically, the General Meeting elected 5 members of the Board of Directors for the term of 2023 - 2028 including: Mr. Cao Hoai Duong, Mr. Le Van Nghia, Mr. Nguyen. Dang Trinh, Mr. Tran Hoai Nam and Mr. Nguyen Xuan Quyen (independent members of the Board of Management). In addition, the Board of Management of PVOIL currently has two incumbent members, Mr. Doan Van Nhuom and Mr. Nguyen Mau Dung.

At the same time, the General Meeting of Shareholders elected 3 members of the Supervisory Board for the term of 2023 - 2028 including: Mr. Nguyen Duc Ken; Mr. Pham Thanh Son; Mr. Le Vinh Van.

The Board of Management and Supervisory Board met and elected Mr. Cao Hoai Duong as Chairman and Mr. Nguyen Duc Ken as Head of the Supervisory Board.
On behalf of the members of the Board of Management and Supervisory Board for the term of 2023 - 2028, Mr. Cao Hoai Duong - Chairman of the Board of Management of PVOIL thanked shareholders for their trust and pledged to work honestly, carefully, and protect their rights and interests.

The Presidium of the Annual General Meeting

The Board of Management and Supervisory Board of PVOIL launch the Annual General Meeting

Shareholders participate in the meeting in the form of online

Shareholders participate in the meeting in the form of online

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