PTSC plans capital hike to $233 mln through stock dividend issue

PetroVietnam Technical Services Corporation (PTSC), a unit of state-owned energy group Petrovietnam, plans to raise its charter capital to more than VND6.14 trillion ($233 million) through a stock dividend issuance to strengthen its financial position and support a pipeline of major oil, gas and renewable energy projects.

According to documents released ahead of its annual general meeting scheduled for June 18, PTSC, listed on the Hanoi Stock Exchange as PVS, plans to issue more than 102.2 million shares as a stock dividend, equivalent to a payout ratio of 20%.

The shares will be issued from retained earnings recorded in the company's audited standalone 2025 financial statements. The issuance is expected to be completed in 2026 following regulatory approval.

The company said the capital increase is necessary to reinforce its financial capacity and meet growing equity requirements for conventional oil and gas projects as well as offshore renewable energy developments during the 2026-2030 period.

If completed, PTSC's total outstanding shares will increase to nearly 614 million, while charter capital will rise from over VND5.11 trillion to nearly VND6.14 trillion ($233.24 million).

For 2026, PTSC targets consolidated revenue of VND33 trillion, with pre-tax profit of VND1.27 trillion ($48.25 million) and net profit of VND990 billion ($37.62 million).

The revenue target represents a slight increase from the previous year, while the profit targets imply declines of 42% and 48%, respectively.

In the first quarter of 2026, PTSC reported revenue of VND8.7 trillion ($330.6 million) and net profit of VND435 billion ($16.53 million), both up 45% from a year earlier. The results allowed the company to complete approximately 26% of the year's revenue target and 44% of its full-year profit goal.

The board also plans to propose a cash-equivalent dividend ratio of 7% for 2026.

Major projects pipeline

PTSC is seeking shareholder approval to participate in a series of large-scale projects and service contracts between 2026 and 2030, positioning itself for what it sees as a new investment cycle in oil and gas, offshore wind power and energy infrastructure.

In the upstream segment, the company aims to expand involvement in key oil and gas developments, including the White Lion (Su Tu Trang) Phase 2 project, the Blue Whale (Ca Voi Xanh) gas project, projects developed by Murphy Oil and Vietnam's national petroleum reserve project in Thanh Hoa province.

In the LNG and gas-fired power sectors, PTSC is targeting opportunities linked to Vietnam's Power Development Plan VIII, including the Son My LNG terminal, the Phase 2 expansion of the Thi Vai LNG terminal and gas-fired power projects in Can Tho and Da Nang.

The company also plans to participate in industrial and renewable energy projects, including the expansion and upgrade of the Dung Quat refinery, the Ninh Thuan 1 and Ninh Thuan 2 nuclear power projects, and large-scale offshore wind developments.

To support these activities, PTSC plans to develop a renewable energy industrial and service hub in Rach Dua ward, Ho Chi Minh City, along with ecological energy complexes associated with Petrovietnam.

The company is also exploring partnerships to manufacture supporting equipment such as extra-high-voltage subsea cables, wind turbine foundations, offshore construction vessels and operation and maintenance service ships.

Internationally, PTSC is targeting oil and gas development and energy infrastructure rehabilitation projects in the Middle East.

The company said many of these projects involve complex technical requirements, strict execution schedules and substantial bid and performance guarantee obligations. Most project owners are affiliated with Petrovietnam.

Given the size and nature of the potential transactions, any contracts awarded are expected to require direct approval from shareholders.

On the Hanoi Stock Exchange (HNX), PVS shares closed up 0.78% at VND39,000 ($1.48) on Friday, although the stock remains about 28.6% below its peak reached in early March.