PV Gas to issue new shares, raise charter capital to $950 mln

Leading Vietnamese gas supplier PV Gas plans to issue nearly 383 million shares and raise its charter capital from VND19.14 trillion ($792 million) to VND22.96 trillion ($950 million).

According to a company release, PV GaS shareholders will receive VND3,600 ($0.15) per share in cash dividends and an additional 20% bonus shares - 20 new shares per 100 existing shares. The deadline for bonus share registration will be September 25.

On November 2, the company will pay VND6.9 trillion ($285.57 million) in cash dividend to shareholders at a rate of 36%. With its ownership of nearly 96%, state-run Petrovietnam, the parent company of PV Gas, will receive nearly VND6.6 trillion ($273.15 million).

At the end of the Q2/2023, PV Gas had VND18.88 trillion ($781.38 million) in undistributed after-tax profits and VND27.64 trillion ($1.14 billion) in equity surplus.

In terms of assets, it recorded VND12.5 trillion ($517.33 million) in cash and cash equivalents, an increase of nearly VND2 trillion compared to the beginning of the year. Held-to-maturity investments reached VND28.27 trillion ($1.17 billion), up VND4.54 trillion.

In the first half of the year, the corporation's revenue decreased 17% to VND45.26 trillion ($1.87 billion) while after-tax profit for the parent company as shareholder dropped 23% to VND6.5 trillion ($269 million).

The decline was attributed to the six-month Brent oil price average reaching $80 per barrel, down 26% over the same period last year. The average LPG contract price also fell 26% to $611.25 per ton.

Consumption of dry gas increased 1% and LPG 4% while that of condensate decreased 21%.

Brent oil price, after falling to $70 per barrel, has rebounded sharply since June to $91 per barrel. Maritime Bank (MSB) Securities believes that oil prices will remain high in the 2023-2024 period due to high world demand for crude oil and limited supply due to OPEC production cuts and the prolonged Russia-Ukraine conflict.

These developments will keep PV Gas's gas selling prices remain high, thus improving its dry gas sales revenue, the company said.

On the other hand, the El Nino weather phenomenon is likely to last until the end of 2024, increasing dry gas consumption by electricity customers in the second half of the year. Along with the nation’s economic recovery, consumption by customers in the fertilizer industry and other industries is also expected to bounce back, the release said.

PV Gas is listed on the Ho Chi Minh Stock Exchange (HoSE) as GAS. Closing the Wednesday session, GAS stood at VND105,600 ($4.37) per share.