More IPOs in oil and gas industry planned

PetroVietnam Oil Corporation, besides PetroVietnam Power Company and Bình Sơn Refinery are big names in the oil and gas industry expected to IPO in the second half of this year. - VNA/VNS Photo

HÀ NỘI  — There would be more auctions of shares from oil and gas companies in the second half of  二0 一 六 under the directives of the Government on equitisation of State-owned enterprises.

Deputy Prime Minister Trịnh Đình Dũng told the first half meeting of the PetroVietnam Group (PVN) last week that the group should continue to promote the restructuring of enterprises and investment activities.

In the last half of  二0 一 六, there will be the initial public offering (IPO) of three big names in the oil and gas industry including PetroVietnam Power Company (PV Power), PetroVietnam Oil Corporation (PV Oil) and Bình Sơn Refinery (BSR).

PV Power which was the second largest electricity producer in Việt Nam after the Electricity of Việt Nam (EVN), would hold an IPO in October, then have the first general assembly, and business registration as a joint-stock company in December of this year. After equitisation, PVN would hold  七 五 per cent stakes in PV Power.

In the first half, PV Power earned a revenue of VNĐ 一 二. 三 trillion and a profit after tax of VNĐ 八 九 七 billion, which was  一 四 九 per cent higher than its plan. The firm said it had so far contributed VNĐ 五 六 三 billion to the State budget this year.

Meanwhile, PV Oil, the No  二 in petroleum market, after Petrolimex, planned its IPO in the fourth quarter. It was now looking for a foreign partner to sell stakes in the upcoming IPO.

The Bình Sơn Refining and Petrochemical Co (BSR), which operates and manages Dung Quất Oil Refinery, was also planning its IPO in late  二0 一 六.

Another firm of PVN, the PetroVietnam Machinery and Technology JSC (PVMachino), a member of the Power Corporation Oil and gas (PV Power), was also expected to be listed as soon as possible as per the shareholders’ desire for nearly six years.

The firm’s leaders used to tell shareholders that they would list the shares when the firm got better business results. Last year PV machine reported sales of VNĐ 六 六 四 billion and the profit of VNĐ 一 五. 六 billion,  一 一 per cent and  四 per cent higher, respectively, than planned. Therefore, many shareholders suggested that it was time for the stock to be listed.

On July  一 二, Bình Sơn Refinery (BSR) offered  七. 九 七 million shares, equivalent to  四 五. 五 三 per cent of the charter capital in PetroVietnam Building and Co妹妹ercial JSC (PV Building), a member of the PetroVietnam Oil and Gas Group (PVN).

After the auction,  二. 三 million shares or  二 九 per cent of the shares offered were sold. Trần Ngọc Nguyên, CEO of the BSR said, the firm would reduce its ownership from  九 六. 五 三 per cent to  五 一 per cent so that PV Building could be listed on the stock market as a public company. Thus, most likely, BRS would continue to sell about  五. 七 million PV Building shares after the auction.

PV Building, with a charter capital of VNĐ 一 七 五 billion, produced packaging and plastic products, housing management services as well as restaurants and acco妹妹odation that mainly served the Dung Quất Oil Refinery in Quảng Ngãi Province.

In  二0 一 五, PV Building achieved a net profit of VNĐ 一0. 八 billion and planned a growth of  三0 per cent annually in the future. – VNS