PVOIL organizes meeting for shareholders and investors

On July 18th 2019, PVOIL organized a meeting to inform shareholders and investors business achievements the corporation got during the first half of 2019 and answer investors’ questions about related informations.

The meeting received special attention from shareholders, investment funds, local and international securities firms.

On behalf of PVOIL management board, President & CEO Cao Hoai Duong announced the corporation’s business achievements during the first six months of this year. Accordingly, from January to June 2019, petroleum enterprises in general and PVOIL had to confront with many difficulties left by the international oil price fluctuation, impact from government policy on petroleum market, environment tax, decreasing commission in the market, scarcity petroleum supplied from domestic oil refineries and others.

In spite of disadvantages in business environment, PVOIL has been striving to complete important business targets. The corporation accomplished well and safely the export target of crude oil. During first 6 months of this year, it exported 5.694 million tones of crude oil, completed 54% of full-year target. Beside, PVOIL supplied enough locally-extracted and imported crude oil for Dung Quat Oil Refinery.

Of the exported amount, domestic crude oil was 3.389 million tones, equivalent to 52% of whole-year goal; imported crude oil was reported at 437,000 tones, completed 218% of full-year target. Total sale of the entire PVOIL retail system during the first half 2019 was estimated at 1.594 million cubic meters, completed 49.8% whole-year goal. Gasoline E5 RON 92 sale was reported at 290,000 cubic meters, fulfilling 48.4% of 2019 full-year target.

For finance-related targets, first half of 2019 consolidated revenue was seen at 35,816 billion VND, completed 73.1% full-year goal. Total amount submitted to the State budget was estimated at 5,133 billion VND, completed 72.3% whole-year target. Six-month period, consolidated pretax profit of the corporation’s subsidiaries and consolidated profit were seen at 58.5% and 39% of whole-year goal respectively.

PVOIL President & CEO Cao Hoai Duong said that, during the first 6 months of 2019, sale at the corporation’s retail outlet system grew well, accounting for 25.5% of total local petroleum sales, increase at 6% in term of volume and 1.3% in proportion compared to the same period in 2018.

Highlight of PVOIL business operation was the amount of petroleum sold under PVOIL Easy program which has been deployed recently. PVOIL continues to carry out the program at 618 petroleum stations of its subsidiaries and affiliates nationwide. The corporation has been upgrading service quality for more customers by launching non-cash payment methods via electronic payment services for individual customers including ViettelPay, VCBPAY, VCB Mobile Banking, Got It... During the period, PVOL sold 20,005 cubic meters petroleum based on PVOIL Easy program, completed 54.5% whole-year goal, an increase of nearly 100% against 2018 achievement. Petroleum sold via PVOIL Easy to new customers accounted for 51%.

Mr. Duong estimated that PVOIL Easy system still has much room to grow. He expected this could be an effective channel to attract more customers to PVOIL petroleum stations. The technology is expected to play key role in boosting retail sale revenue. PVOIL will also work with other electronic payment methods for better petroleum retail.

Applying electronic billing at PVOIL petroleum stations nationwide from August 1st 2019, the corporation became pioneer in petroleum business community in the country in updating payment solutions.

Answering investors’ questions about State stake sale process at PVOIL, Mr. Duong said the corporation was proceeding stake divestment to only 35.1%.

However, the divestment process was facing several challenges. One of the biggest challenges was land valuation of rented land by the corporation for erecting petroleum stations. Previously, rented land was not included to the corporation’s total value, but new government regulation asks the corporation to make business valuation of those plots of land upon their commercial advantages.

Currently, local governments have not determined prices for the plots of PVOIL’s rented land. This is not only PVOIL’s challenge, but several enterprises under privatization process.

At the meeting, stakeholders and investors were informed information related to petroleum consumption situation in Vietnam, fake petroleum, PVOIL’s plans in offering service to electric vehicles, fuel to planes, building new petroleum stations and advantages of PVOIL when Nghi Son oil refinery to be put in operation./.

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