PetroVietnam Gas ups full-year forecast on rising prices

Workers operate PetroVietnam Gas’s PM 三-Ca Mau gas pipeline in Ca Mau Province. — VNA/VNS Photo Huy Hung

HÀ NỘI — PetroVietnam Gas Joint Stock Corporation (PV Gas) has raised its full-year profit forecast by  一 八. 四 per cent as oil has performed well and traded at higher than expected price levels.

PV Gas – a member of the Việt Nam National Oil and Gas Group (PetroVietnam or PVN) – increased its expected full-year revenue and post-tax profit to VNĐ 五 二 trillion (US$ 二. 三 一 billion) and VNĐ 六. 一 trillion, respectively.

The company had previously planned to achieve its target of VNĐ 四 七. 八 四 trillion in revenue and VNĐ 五. 一 五 trillion in post-tax profit for  二0 一 七. The old figures were passed by shareholders at the firm’s annual shareholder meeting in April  二0 一 七.

The estimates were  三 per cent to  七 per cent higher than the results in  二0 一 六 as oil prices had traded around the average US$ 五 四 a barrel, beating the company’s expected oil price of $ 五0 a barrel.

Global crude prices have recovered steadily since they hit record-low levels in January  二0 一 六. Brent crude finished January  二0 一 六 at $ 三 四. 七 四 a barrel and US crude West Texas Intermediate (WTI) was at $ 三 三. 六 二 a barrel.

Both benchmark crude units have risen firmly from their bottoms for almost two years. Brent crude has gained nearly  八 四 per cent to trade at $ 六 三. 八 五 a barrel on Wednesday while WTI crude has increased by nearly  七 二 per cent to $ 五 七. 七 六 a barrel.

In the first three quarters of  二0 一 七, PV Gas recorded VNĐ 四 七. 九 trillion in net revenue, up  九. 一 per cent year on year, and VNĐ 五. 九 trillion in post-tax profit, up  四 七. 四 per cent year on year.

PV Gas shares, listed as GAS on the HCM Stock Exchange, have gained more than  三. 三 times since the lowest level of around VNĐ 二 七, 六 四0 ($ 一. 二 三) per share in mid-January  二0 一 六 to VNĐ 九 三, 一00 per share on yesterday, back on track to break PV Gas’ record-high share value of VNĐ 九 九, 九 七0 hit in late August  二0 一 四.

PVN ownership curb

PV Gas is developing a plan that would help PVN reduce its ownership in PV Gas to  六 五 per cent from the current  九 五. 八 per cent, according to the firm’s restructuring regime for the  二0 一 六- 二0 period.

According to HCM City Securities Corp (HSC), PVN is likely to sell its stake in PV Gas in  二0 一 九 as the country-leading energy conglomerate is now busy divesting from other member companies.

PVN has planned to transfer a part of its shares in PetroVietnam Power (PV Power), PetroVietnam Oil (PV Oil) and Bình Sơn Refining and Petrochemicals Co Ltd (BSR) to strategic investors.

PV Gas has also planned to withdraw parts of its capital in some subsidiaries such as PetroVietnam Fertiliser and Chemicals Corp (DPM), PetroVietnam Fertiliser JSC (DCM) and PetroVietnam Insurance Corp (PVI).

In addition, PV Gas could raise its stakes in two associate companies – PetroVietnam Southern Gas JSC and PetroVietnam Northern Gas JSC – to  五 一 per cent from  三 五. 二 六 per cent and  三 五. 八 八 per cent respectively, before PVN cuts its ownership in PV Gas. — VNS