In the context of PV Gas’s initial public offering (IPO), which has attracted strong interest from both domestic and foreign investors, earlier (on September 8, 2010) in Ho Chi Minh City and recently (on September 16, 2010) in Ha Noi, Vietnam Gas Corporation (PV Gas) organized two seminars to introduce its business operations and future development plans. The purpose was to help investors gain a clear understanding and make accurate analyses of PV Gas before deciding to invest in its shares.
The seminar held at Melia Hotel Ha Noi attracted more than 500 investors. On the PVN side, participants included: Mr. Dinh La Thang – Member of the Party Central Committee, Party Secretary, Chairman of the Member Council of Vietnam National Oil and Gas Group; Mr. Do Van Hau – Standing Vice President of Vietnam National Oil and Gas Group; Mr. Le Minh Hong – Vice President of Vietnam National Oil and Gas Group, Chairman of the Board of Directors of PV Gas; leaders of professional departments and member units of the Group. On the PV Gas side were Mr. Vu Dinh Chien – Vice Chairman of the Member Council; Mr. Do Khang Ninh – General Director; members of the Member Council; the Board of Management; representatives of departments, subsidiaries, and affiliated units. Attending the seminar were also representatives of the Ha Noi Stock Exchange, PV Gas’s partners, banks, etc.
Vietnam Gas Corporation, a subsidiary of Vietnam National Oil and Gas Group, operates in the fields of gas gathering, transportation, processing, storage, distribution, and trading nationwide. Currently, PV Gas ranks third among the Group’s subsidiaries. PV Gas also plays an important role in contributing to national energy security, food security, stabilizing domestic LPG prices, and serving as the foundation for the development of key economic sectors such as electricity, fertilizer, and petroleum—contributing to making Vietnam National Oil and Gas Group one of the core corporations of the national economy. With a relatively complete infrastructure system, PV Gas currently provides gas feedstock to produce 36 billion kWh of electricity annually (equivalent to 40% of national power output), nearly 800,000 tons of fertilizer annually (equivalent to 30% of national demand), 100,000 tons of gasoline annually (equivalent to 5% of domestic production), and about 700,000 tons of LPG annually, meeting nearly 70% of nationwide demand.
In this IPO, PV Gas will publicly offer nearly 95 million shares, equivalent to 5% of its charter capital, at the Ho Chi Minh City Stock Exchange. Mr. Do Khang Ninh, General Director of PV Gas, emphasized the benefits investors will enjoy when owning PV Gas shares in this IPO: “PV Gas is proud to be the leading enterprise in Vietnam’s gas industry, operating efficiently and continuously developing sustainably. Equitization is an inevitable development milestone in PV Gas’s history. Therefore, investors will have the opportunity to own shares that are attractive in terms of reputation as well as stable and sustainable profitability, both in the present and in the future. We will build trust with investors through concrete actions. By owning PV Gas shares, investors will be able to contribute opinions and participate in deciding development strategies, business orientations, production and business plans, and corporate governance to manage and operate PV Gas most effectively, ensuring efficient use of their investment capital.”
PV Gas’s development roadmap for the next phase has been clearly defined with strategies and plans. For the 2011–2015 period (after equitization), PV Gas will continue to maintain its leading position in Vietnam’s gas industry, gradually expanding into the international market to become one of Asia’s major gas corporations. The company targets revenue growth of 18%–20% per year, with revenue structure: gas accounting for 61%, gas products 17%, and services 22%. The company aims to consume 47.5 billion m³ of gas, import 5.5 million tons of LNG, achieve total revenue of VND 299,683 billion, pre-tax profit of VND 26,063 billion, state budget contribution of VND 17,200 billion, and average per capita income growth of 15% per year.
To meet Vietnam’s gas consumption demand in the coming years, in addition to continuing to exploit operating gas fields, PV Gas will expand gas collection from new fields in the Cuu Long, Nam Con Son, and Malay–Tho Chu basins, as well as in the Northern region. Specifically, PV Gas is actively implementing numerous major projects simultaneously for operation in 2011–2015, such as: Hai Su Trang/Hai Su Den, Te Giac Trang, Hai Thach, Moc Tinh, Chim Sao, Nam Con Son 2, Block B–O Mon (in cooperation with Chevron of the US, Mitsui of Japan, and PTT of Thailand). Another important solution is that PV Gas will import gas and gas products into Vietnam; seek and negotiate sites to build import terminals; select partners; and develop other infrastructure to ensure LNG imports into Vietnam from 2012.
At the same time, PV Gas will further strengthen LPG import activities—an operation being effectively implemented through long-term import contracts from the Middle East, primary and intermediate storage facilities, and distribution networks across all three regions of the country. Notably, PV Gas commenced construction of the first and largest refrigerated LPG storage terminal in Vietnam with a capacity of 60,000 tons in late 2009, scheduled for operation in 2012. PV Gas’s customers include the major LPG trading companies in Vietnam.
At the roadshow, PV Gas spent significant time presenting its business operations and future development plans to help investors clearly understand the company and the benefits of owning PV Gas shares. The seminar, chaired by Mr. Dinh La Thang, Chairman of the Member Council of Vietnam National Oil and Gas Group, also included a Q&A session, during which he addressed questions from investors and the media on issues of broad interest regarding the development of the gas industry amid the growth of PVN and the national economy.
Source: pvgas.com.vn, 20/9/2010
