Vietnamese leading gas corporation PV Gas has successfully organized its 2023 annual general meeting, finalizing the heavyweight’s business plans for the year and further fortifying its leadership.
The AGM, held in Ho Chi Minh City on Thursday, also voted for other important matters of PV Gas, a subsidiary of state-run Petrovietnam.
Petrovietnam Deputy CEO Duong Manh Son and other Petrovietnam executives attended the shareholders meeting. Those who hosted the AGM included Hoang Van Quang, a board member and CEO of PV Gas, and two Deputy CEOs - Nguyen Thanh Binh and Pham Van Phong.
Other participants included board members, directors and the supervisory board of PV Gas, together with representatives of the company’s departments and affiliated units.
The shareholders at the meeting made up almost 98.1% of the company’s total voting shares.
PV GAS's reports delivered at the AGM said that in 2022, the world's geopolitical situations were unstable due to the Ukraine conflict while the U.S. and many countries had sanctions against Russia; together with China's strict Covid-19 control policy. The context has caused uncertainties in the volatile global energy markets and financial policies.
Under the circumstances, Brent oil prices, and contract prices of LPG and other petroleum products fluctuated strongly. There was a time when Brent oil prices exceeded $120 per barrel, the Saudi Aramco Contract Price (CP price) reached $950 per ton, but fell sharply in the later months of the year.
Last year’s average oil price was $101 per barrel, while the average CP price was $735 per ton. The mobilization of gas for electricity production by state-run utility Vietnam Electricity (EVN) was lower than the plan approved by the Vietnamese Ministry of Industry and Trade due to the priority given to other energy sources such as hydropower and renewable energy. For fertilizer customers, gas consumption was stable and increased compared to 2021.
Despite the disadvantages, with the motto "Solidarity - Innovation - Professionalism - Action", PV Gas's board of directors and all employees united, were innovative in thought and professional in action, making good use of opportunities, drastically, synchronously, and effectively deploying seven groups of solutions.
The solutions involved production - market - business; investment and finance; mechanisms and policies; organization, management, and staffing work; international cooperation and partnerships; training and science and technology; safety, health and environment.
PV Gas has focused on the three groups of core and breakthrough solutions which are human resources, markets, and policy mechanisms. With the active support and close supervision of shareholders, the company has successfully performed its tasks, exceeding the plan targets approved by last year’s AGM.
According to the company, the world economy will this year continue to face the biggest energy supply shock ever due to the prolonged Ukraine conflict, the disruption of supply chains for many basic goods, while domestic natural gas sources are on the rapid decline, especially the gas source from Nam Con Son 1 system. Therefore, the implementation of gas projects is facing many difficulties. Meanwhile, the domestic LPG trading market has seen fiercer competition in supply.
Amid the context, PV Gas has come up with solutions and set plans for this year. Its 2023 targets include total revenue of VND76,441 billion ($3.25 billion); profit after tax at VND6,539 billion ($278.4 million); and VND3,912 billion to be contributed to the state budget.
This year, PV Gas plans to test run and put into operation its Thi Vai LNG Terminal in the southern province of Ba Ria-Vung Tau and its component projects. The major terminal is capable of receiving LNG vessels up to 100,000 tons, with the main items of phase 1 including LNG tanks with a capacity of 180,000 m3 and technological equipment designed in line with the latest international and Vietnamese standards and regulations.
PV Gas will also speed up market development work in Vietnam and overseas for gas and LNG products; and look for opportunities to invest in LNG and liquefied petroleum gas warehouses in northern Vietnam.
The AGM elected two Deputy CEOs, Nguyen Thanh Binh and Pham Van Phong, as board members. Do Dong Nguyen was re-elected as an independent member of the board.
At the meeting, the board elected Binh as board chairman, and appointed Phong as a board member cum CEO of PV Gas.
The AGM also spent time for shareholders and company leaders to discuss and clarify relevant contents. Most of the discussions were about the company’s development strategy, LNG import plans, the progress of investment projects, production and business issues in 2023 and issues related to Vietnam’s latest power development plan (Power Plan VIII), and the current electricity shortage.
The company’s management told shareholders that they will take in shareholders’ opinions to sustainably develop the PV Gas brand, and implement the Vietnamese gas sector’s development strategy in order to bring the highest benefits to shareholders.
The AGM approved all the contents presented with rates from over 99% to 100%. The approvals included a dividend payment ratio of 36% in cash (more than 10 percentage points higher than the target); and plans to increase charter capital in 2023 by issuing shares to increase the share capital from the equity capital with a 10:2 ratio.
Addressing the meeting, Petrovietnam Deputy CEO Duong Manh Son said he appreciated the efforts by PV Gas in fulfilling its 2022 business targets better than planned. He also updated the AGM the impacts of the world political situation and developing trends.
For 2023, he asked PV Gas to focus on resources for core business areas, managing its investment portfolio flexibly and effectively; promoting market development and product diversification towards international markets; quickly adapting to energy transition trends, joining investment cooperation in value chains; and carrying out its digital transformation strategy in line with Petrovietnam’s implementation plans.
Petrovietnam, as a major shareholder of PV Gas, is committed to accompanying PV Gas in its development process, Son said.
This is the 33rd year of PV Gas's development journey. During the three decades, the company has firmly believed that, with the foundation of human resources, facilities, assets, finance, experience, and brand, it has enough competence to successfully carry out its 2023 plans, continuing to contribute to the successful implementation of the 5-year plan 2021-2025, further building its position and brand in the domestic and regional markets.