PV Gas, a subsidiary of state-owned Petrovietnam, has emerged as a bright spot amid the economic gloom, having accumulated nearly VND40 trillion ($1.65 billion) as of September 30 and paying regular cash dividends of 30-40% each year.
Huge cash dividends
On November 2, nearly VND7 trillion ($288.4 million) in dividends will be paid into the accounts of PV Gas shareholders. According to the plan, the corporation will pay cash dividends for 2022 at a rate of 36% of par value and share bonuses at a rate of 20% (two new shares for 10 existing ones). The total bonus ratio will reach 56%, the highest it has ever paid.
PV Gas finalized the list of shareholders for the 2022 cash dividends on August 30 and the other for share bonuses on September 25. The additional shares are expected to land in investor accounts for trading in November.
Since it was listed on the Ho Chi Minh Stock Exchange (HoSE) as GAS in 2012, the oil and gas giant has paid cash dividends of over 30% each year. In more successful years such as 2018 and 2019, the payout ratio was 45-53%.
Positive business results have helped PV Gas maintain its attractive dividend policy. From 2006-2022, the corporation recorded strong growth, with revenue hitting VND14.65 trillion ($603.6 million) in 2006 and VND100 trillion ($4.12 billion) in 2022. Its net profit skyrocketed from VND3.9 trillion ($160.7 million) in 2006 to VND14.8 trillion ($609.8 million) last year.
This year, PV Gas has targeted revenue of VND76.44 trillion ($3.15 billion) and after-tax profit of VND6.54 trillion ($269.5 million), based on the oil price plan of $70 per barrel, said its board of directors.
According to the newly released third quarter financial statements, after nine months, the corporation recorded VND67.38 trillion ($2.78 billion) in net revenue and VND9 trillion ($370.8 million) in after-tax profit, fulfilling 88% and exceeding 38% of its year plans, respectively.
PV Gas's business results depend heavily on oil prices. Currently, Brent oil stands at $86.5 per barrel, higher than the average price in the fourth quarter of 2022. Yuanta Vietnam Securities expects oil prices to remain high until the end of the year thanks to the Organization of the Petroleum Exporting Countries (OPEC) Plus's production cuts, limited supply from Russia due to the ongoing Russia-Ukraine conflict, and expected demand increase as the economy recovers.
In addition to rising oil prices, the corporation's revenue for the rest of the year is expected to increase thanks to recovering demand from FDI enterprises and revenue from Thi Vai LNG warehouse.
Nearly $1.65 billion in cash, deposits
As of September 30, PV Gas had VND10.85 trillion ($447 million) in cash, an increase of VND300 billion from the beginning of the year. Held-to-maturity investments (deposits) reached VND28.9 trillion ($1.19 billion), up nearly VND5.2 trillion. Total cash and deposits reached nearly VND40 trillion ($1.65 billion), accounting for 47% of its total assets.
Its equity was VND62.67 trillion ($2.58 billion) but charter capital was only VND19.14 trillion ($788.6 million). It posted investments and development funds worth VND27.6 trillion ($1.14 billion) and undistributed after-tax profit of VND14.31 trillion ($589.6 million). Its debt increased to VND8.04 trillion ($331.26 million), with debt-to-equity ratio hitting only 13%.
PV Gas is a key leading unit under Petrovietnam. Over more than 30 years of development, it is currently the only enterprise in Vietnam that owns and operates a complete gas system from collection, storage and processing to trading of gas and gas products. The corporation provides stable gas to produce over 11% of electricity output and about 70% of nitrogen fertilizer output, and accounts for nearly 70% of the country's liquefied petroleum gas (LPG) market share. Its LPG retail market share stands at 11%.
In the coming years, PV Gas will focus on infrastructure investment as a premise to expand its liquefied natural gas (LNG) supply and business activities. Healthy finances and abundant cash resources should help PV Gas realize its goal of becoming Vietnam's No. 1 enterprise in LNG infrastructure business and supply.
The corporation has just inaugurated the first phase of the 1 million-ton LNG Thi Vai Terminal in the southern province of Ba Ria-Vung Tau province - the first LNG warehouse in Vietnam - after four years of construction.
PV Gas chairman Nguyen Thanh Binh said that the second phase of the project will be implemented soon to increase the terminal’s capacity to 3 million tons per year.
The corporation is investing in the construction of Son My LNG Terminal in the central province of Binh Thuan with an expected capacity of 3.6 million tons per year upon completion of the first phase and 10 million tons after the second phase is finished.
In addition, PV Gas will continue to build and expand LNG infrastructure and transportation systems under the LNG Hub model to provide re-gasified gas sources for satellite gas-fired thermal power centers nationwide.
On the stock market, GAS closed Tuesday at VND79,000 ($3.25).