PVOIL: Results of production and sales in the first six months of 2018

Step into 2018, besides facing the complicated movements, unpredictable oil prices and the fierce competition of the domestic petroleum market, some of the internal difficulties can not solve in one day. Overcoming those difficulties, under the close guidance and supporting at various aspects of the Vietnam Oil and Gas Group, together with the efforts of all the leaders and staff, PVOIL has exceeded significant growth targets in the same period, including: output, profit, distribution channel. Some difficult members haven't suffered losses in the first 6 months. Specific results are as follows:

- Exporting and selling crude oil, condensate to ensure safety and efficiency with the output of 5.98 million tons, fulfilling 51% of the year plan, of which the Dung Quat oil refinery is 3.8 million tons from domestic sources and 80 thousand tons from imported sources.

- Production of petroleum, lubricants to meet business demand of the whole system with the output of 295 thousand m3, completing 35% of the plan. The production of E5 RON 92 gasoline did not meet the target due to (i) worry and consumer behavior; (ii) many petroleum traders are not interested in trading E5 RON 92 gasoline but rather boosting the consumption of RON 95 gasoline due to the lack of confidence in the supply of E5 RON 92 gasoline.

- The total petroleum business of PVOIL reached 1,640 thousand m3, fulfilling 52% of the year plan, an increase of 20 thousand m3 over the same period of 2017; the domestic sales of affiliates increased by 4% over the same period of 2017 as PVOIL divested in some units. Fuel Retailing sales through the petrol stations increased 8% over the same period in 2017, accounting for 24.5%, went up by 1 percentage over the same period in 2017. This is a remarkable result in an increasingly competitive market.

- Consolidated revenue reached VND 29.5 trillion, fulfilling 72% of the full year target; combined pretax profit was estimated at VND 320 billion, fulfilling 94% of the full-year target. The state budget for the whole system is expected to reach VND 4.7 trillion, fulfilling 65% of the year plan.

- Regarding the equitization, PVOIL completed its firstinitial public offering (IPO) on January 25th and was listed on UPCoM on March 7th. At the same time, PVOIL has offered shares to the strategic investors. As a result, four investors sent a letter confirming that they will continue to participate in the next steps (contract negotiation, deposit and participate in auctions) after the completion of the due diligence process. Based on the actual requirements and the high feasibility of the selection process, PVOIL has reported to the Vietnam Oil and Gas Group (Petrovietnam) to request the Vietnamese Government to extend the implementation periodand choose to stay for 04 months. However, the extension of time for offering shares to the strategic investors was not approved by the Government. In the upcoming time, PVOIL will continue to plan to divest state capital at PVOIL up to 35.1%. <

At present, PVOIL is preparing to hold the first meeting of the shareholders (at 08:00 am on July 30th 2018 at Lotte Legend Saigon Hotel, Ho Chi Minh City) as the basis for moving to operate under stock company model.

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