PVOIL ORGANIZES ANNUAL GENERAL MEETING OF SHAREHOLDERS: BUSINESS EXPECTED TO RECOVER IN 2021

28.04.2021

00:00/00:00

On April 27th, 2021, in Ho Chi Minh City, PetroVietnam Oil Corporation - Joint Stock Company (stock code: OIL - UPCoM) held online Annual General Meeting of Shareholders 2021.

The meeting which received participation of shareholders representing 840,903,660 shares, equivalent 81.31% of the total number of PVOIL shares was chaired by Mr. Cao Hoai Duong - Chairman of PVOIL's Board of Management, PVOIL President & CEO Doan Van Nhuom and members of the Board of Management.

Reporting the business situation to shareholders at the meeting, PVOIL's Board of Management said that the double impact of the Covid-19 pandemic and the decline in oil prices seriously affected PVOIL's production and business activities in 2020.

The corporation performed well the inventory management task as well as controlled the source of goods to minimize damage once inventories reduced. The retail channel continued to perform well with higher output. Sales through PVOIL Easy program grew strongly despite the pandemic.

Shortly after the pandemic outbreak was reported, PVOIL developed scenarios to face the situation and strategies to reduce costs corresponding to each scenario. With the policy of “tightening austerity”, PVOIL could reduce losses in the unfavorable business conditions when the business costs were cut. Among PVOIL’s subsidiaries, besides those with losses, there were still profitable business units.

For 2021, PVOIL has targeted a consolidated pre-tax profit of 400 billion VND. In the first quarter of the year, the corporation made good use of market opportunities to maximize profits. Although the business results have met the plan decided earlier due to the resurgence of COVID-19, the consolidated pre-tax profit reached 206.5 billion VND, equivalent to 52% of the whole-year goal.

PVOIL inaugurated 12 new petroleum stations, bringing the total number of retail outlets in the system to 602. The petroleum retailer continues to promote its advantage of being the first and only oil firm applying non-cash payment solution by scanning QR codes at all petroleum stations with PVOIL Easy program. The program had an average output of more than 6,200 cubic meters a month, equivalent to sales of 59 petroleum stations, an increase of 14% year on-year.

At the virtual meeting, representative from the Board of Management answered several questions of shareholders including the forecast of business output and profit in 2021, the impact of the revised Decree No.83 on PVOIL's business operations, the impact of the Government's campaign to fight against petroleum smuggling, the equitization process and the divestment plan of State capital at PVOIL, business restructuring; divestment at PETEC, efficiency of BCC contract with PV GAS in producing base gasoline RON 91, as well as PVOIL’s preparation for energy conversion trends and development trends of electric cars ...

Chairman of the Board of Management Cao Hoai Duong affirmed that PVOIL closely monitors the trend of switching from fossil energy to green energy and development of electric cars in the world as well as in Vietnam to proactively adapt to the transformation with the motto “limit danger and utilize opportunity” to ensure the long-term and sustainable development of PVOIL. PVOIL is also conducting research and testing of battery charging points for electric cars at PVOIL petrol stations.

Regarding the equitization situation, PVOIL is continuing to monitor and actively coordinate with the authorities to speed up this process.

If the pandemic is under control domestically, PVOIL’s sales is expected to increase, helping the corporation to fulfill the proposed profit plan, said PVOIL President & CEO Doan Van Nhuom.

After discussing and answering questions of shareholders, the Annual General Meeting of Shareholders approved the contents presented at the meeting with a high rate of consensus.

Closing the meeting, Mr. Cao Hoai Duong, Chairman of PVOIL’s Board of Management thanked shareholders for participating the meeting and support, accompany PVOIL. This is the first time PVOIL organizes the meeting under an online form. The firm hopes to receive shareholders’ advices to improve its organization and facilitate the implementation of shareholders’ rights.

Board of Chairpersons of the Meeting

Mr. Cao Hoai Duong, Chairman of the Board of Management of PVOIL (right) and PVOIL President & CEO Doan Van Nhuom (left) answer questions of shareholders.