Shipping firm PVTrans, a subsidiary of state-owned energy giant Petrovietnam, targets to earn VND8.8 trillion ($356.7 million) in revenue and VND760 billion ($30.8 million) in after-tax profit this year, respectively down 7 % and 39% from 2023.
In its yearly plan freshly approved by the board of directors, PVTrans, listed on the Ho Chi Minh Stock Exchange (HoSE) as PVT, sets aside a budget of VND3.37 trillion ($136.6 million) for 2024, most of which is to be used to purchase new vessels.
It will spend $80 million on a ship purchase project transitioned from last year, including $58 million for a very large gas carrier (VLGC) or one Aframax ship or two medium range (MR) tankers; and $22 million for one chemical oil tanker or one bulk ship. A new project this year will purchase two MR tankers or one Aframax ship worth $52 million.
Besides, the company will use VND262 billion ($10.62 million) for financial investment activities such as contributing capital to PVT Logistics, Thang Long Company Limited, and Indochina Transportation JSC.
Rejuvenating the fleet has been a strategic step for PVTrans over many years. In 2023, the corporation purchased and leased a total of 12 ships, increasing its owned and managed ships to 51 with a total tonnage of nearly 1.4 million DWT, a year-on-year increase of 37%.
PVTrans is a leading enterprise in the field of oil and gas shipping. It not only accounts for 100% of the domestic crude oil and LPG shipping market share, but also operates strongly in the international market.
2023 was a difficult year for many industries but a favorable year for the corporation when demand for gasoline and shipping services soared. The outlook for the oil shipping industry was bright as political tensions between Russia and Ukraine prolonged oil shipping times and increased shipping rates. In October 2023, Israel-Harmas tensions and raids on cargo ships in the Red Sea made the situation even more difficult.
Internally, the investment in 12 new ships helped the company's total capacity surge 37%, thus raising its business efficiency.
Thanks to that, PVTrans reported continued growth in business results last year. Specifically, its revenue and net profit reached nearly VND9.5 trillion ($385 million) and VND980 billion ($39.7 million), up 5% and 14% year-on-year, respectively.
Regarding the financial situation, in 2023, PVTrans raised total assets by VND3.2 trillion to VND17.47 trillion ($708.15 million). Of which, the held-to-maturity investments were worth VND3.5 trillion ($141.87 million), an increase of VND790 billion compared to the beginning of the year; and fixed assets expanded from VND7.26 trillion to over VND10 trillion ($405.35 million) thanks to additional ship investments.
The company also significantly increased debt by VND2.24 trillion to more than VND5.9 trillion ($239.16 million). The debt to equity ratio stood at 0.65 times.
PVTrans’s growth drivers this year continue to come from its investment in 12 new ships in 2023 and political tensions.
Yuanta Vietnam Securities JSC expects oil shipping rates to remain high because ship supplies are unlikely to increase in the next 1 to 2 years while demand is stable. In the long term, its growth motivation will come from the trend of increasing the use of imported LNG in production.
PVT closed the Monday session at VND26,350 ($1.07) per share.