PVOil to acquire more loss-making gasoline stations in Vietnam

Petrovietnam subsidiary PVOil will acquire unused and loss-making gasoline stations across the country to expand its network, said CEO Doan Van Nhuom.

"PVOil has acquired about 30 gasoline stations from private companies that suffered losses to expand its network," Nhuom told the firm’s annual general meeting of shareholders on Thursday.

"We will continue to buy such stations if we have the opportunity, besides opening new ones," he added.

According to the CEO, the firm is seeking permission from state-run Petrovietnam, which holds a 83% stake, to buy all gasoline stations for sale.

Last year, PVOil, listed on the Ho Chi Minh City Exchange as OIL, opened 54 new gasoline stations and plans to add 58 more this year, bringing the total number to 700.

At the end of March, the Hanoi Stock Exchange put OIL under warning because in three consecutive years, there were issues mentioned in its annual financial statements as qualified opinions. Deloitte Vietnam is the auditor.

A qualified opinion by an auditor suggests the financial information provided by a company was limited in scope or there was a material issue with regard to the application of generally accepted accounting principles - but one that is not pervasive. Qualified opinions may also be issued if a company has inadequate disclosures in the footnotes to the financial statements.

Chairman Cao Hoai Duong said the warning was derived from problems that existed before the company was converted to a joint stock company in August 2018.

He affirmed that the matter will not affect the current development, production and business of the firm, as well as the existence and trading of OIL on the unlisted public company market UpCom. “We are actively working with stakeholders to address the problems as soon as possible.”

Duong said nearly 300 PVOil gasoline stations have VinFast's electric vehicle charging points, and revenue and profit coming from the cooperation accounted for an important part of PVOil's gasoline station system.

"With plans to open 40-60 new gasoline stations per year, we will continue to cooperate with partners to install electric charging facilities. We will serve both gasoline and electric cars."

Last year, PVOil recorded a consolidated revenue of VND104.83 trillion ($4.47 billion), up 233% compared to the firm's plan and 80% year-on-year. Revenue increased from two main areas of gasoline and international crude oil trading.

Consolidated profit before tax was VND912 billion ($38.87 million), 1.8 times higher than planned.

In 2023, the firm set revenue and profit targets at VND50 trillion ($2.13 billion) and VND600 billion ($25.57 million), respectively. Dividend payout ratio remains at 2%.