Vietnam: Petrolimex prepares for listing

Vietnam: Petrolimex prepares for listing

The Vietnam National Petroleum Group (Petrolimex) has announced consolidated
pre-tax profit of over $180 million in the first nine months of this year
and plans to list on the stock market in this quarter.

The State-petroleum giant's financial report for the first nine months
revealed consolidated net revenue of VND88 trillion ($3.96 billion), equal
to 78 per cent of the figure in the same period last year. The decline is
due to the global crude oil price falling by $9.7 per barrel in the first
nine months.

Though revenue fell, Petrolimex's consolidated pre-tax profit stood at over
VND4 trillion ($180 million), up 60 per cent year-on-year and 2 per cent
higher than the plan. Pre-tax profit in its petroleum business reached
VND2.3 trillion ($103.5 million), accounting for 57.3 per cent of the total.

Pre-tax profit from non-petroleum business sectors, meanwhile, reached
VND1.7 trillion ($76.5 million), or 42.7 per cent of the total. Profits from
its bank and insurance businesses reached VND131 billion ($5.9 million),
while profit from other sectors such as construction, infrastructure and
warehousing reached VND257 billion ($11.5 million).

After contributing to the State budget, Petrolimex's consolidated after-tax
profit stood at more than VND3.3 trillion ($148.5 million). In this quarter
it plans to divest from the Petroleum Infrastructure Company and establish
the Petrolimex Services Corporation and the Petrolimex Construction and
Commerce Corporation.

Petrolimex also pledged to complete all procedures to list on the stock
market during the fourth quarter. As VET reported previously, Petrolimex
Chairman Bui Ngoc Bao told its 2016 annual shareholders meeting on June 23
that "We must list."

It also plans to divest from the Pjico Insurance Corporation by selecting a
foreign strategic investor to sell stocks to, while the merger of the
Petrolimex Land Holdings JSC into the Petrolimex Concrete and Construction
Co. Ltd will be completed shortly, he added.

Petrolimex executives also told the meeting that it will continue with plans
to merge the Petrolimex Group Commercial Joint Stock Bank (PG Bank) into the
Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank).
"This deal will be finished in 2016," Mr. Bao said.

According to a report submitted to the meeting, Petrolimex sold more than
103.5 million shares to its strategic investor, the JX Nippon Oil & Energy
Vietnam, at a price of VND39,017 (around $1.7) per share, increasing its
charter capital to $517 million. These shares cannot be re-sold for five
years.

JX Nippon Vietnam became the official shareholder of Petrolimex on May 28.
The State's shareholding accounts for more than 86 per cent, with JX Nippon
Vietnam taking 9.09 per cent and the remainder belonging to other
shareholders.

Petrolimex is gradually following its roadmap of reducing State capital to
less than 75 per cent. At an extraordinary general meeting held in March it
announced it would issue redeemable preference shares to shareholders
representing 15 per cent of 2015's after-tax profits.

"Under the roadmap of reducing State ownership to 75 per cent and then 65
per cent, the group will have new issuances before consulting with the
governing agency and seeking shareholders' opinions," Mr. Bao said.

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Link to Original Article:
http://www.vneconomictimes.com/article/business/petrolimex-prepares-for-list
ing

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com