Vietnam heavyweight PV Gas plans $3 bln investment over next 5 years

PV Gas, a subsidiary of state-owned giant Petrovietnam, plans to make "strong investment" over the next five years in areas such as infrastructure and import-distribution of LNG.

The planned investment capital is over VND78 trillion ($3 billion), a board of directors member and general director Pham Van Phong told the corporation's 2025 AGM last Friday.

In 2024, robust revenue from international activities helped PV Gas, with Petrovietnam as the majority shareholder, to ride out the difficulties of shrinking gas supply and sales.

Revenue from its international business reached nearly $1 billion for the first time, accounting for nearly 54% of the total, though "both gas supply and sales declined by 17% year-on-year, among other difficulties".

PV Gas's 2024 revenue reached nearly VND130 trillion ($5 billion), up 12% compared to 2023. Consolidated revenue hit over VND105.3 trillion, a 14% rise. They were both the corporation's all-time highs.

Pre-tax profit and after-tax profit were nearly VND13.2 trillion and over VND10.5 trillion ($403.46 million), equal to 182% and 183% of the year's targets, respectively.

The corporation contributed nearly VND7.1 trillion ($272.8 million) to the state budget last year, 89% higher than the target, up 10% compared to the previous year.

Its ROA (return on assets), ROE (return on equity), and dividend payout ratio were all high, reaching over 13%, 17% and 60%, respectively.

According to CEO Phong, PV Gas's mentioned-above achievements were driven by its focus on three major goals.

First, governance and operation. Second, actively transforming the business model - successfully executing the integrated energy business model nationwide, which greatly contributed to operating revenue.

Third, focusing on business in general and international business in particular, with revenue derived from international activities rising to $1 billion for the first time, or nearly 54% of the total revenue.

2025 - "Year of market development"

In 2025, PV Gas plans to achieve consolidated pre-tax profit of VND6.6 trillion ($253.63 million) on consolidated revenue of VND74 trillion ($2.84 billion).

However, its leaders committed to striving for 2025 consolidated revenue to grow by 8% compared to 2024's actual figure which was over VND105.3 trillion or $4.05 billion.

In the first five months of 2025, PV Gas's consolidated revenue was estimated at over VND46.5 trillion, equal to 63% of the whole-year plan. Pre-tax profit reached over VND7.4 trillion ($284.42 million), exceeding the whole-year target by 12%.

At the AGM, some shareholders remarked that in 2025, challenges will intensify in the context of oil prices being on a downward trend and the world's complicated situation.

They noted that they are interested in plans, solutions, and strategic directions to ensure sustainable growth and development of PV Gas, specifically its international business activities; plans on infrastructure investment; plans on LNG and LPG segments; solutions to offset the decline in domestic gas output; the company's restructuring; and new regulations on public companies.

According to Tran Hong Nam, a board member of majority shareholder Petrovietnam, PV Gas made a significant contribution to Petrovietnam, accounting for about 10% of the group's revenue and about 30% of its profit.

"PV Gas not only holds a significant role in Petrovietnam's business, but also in the group's development strategy and its ecosystem," Nam told the AGM.

He expressed his confidence in PV Gas's strategic orientations based on ensuring three factors: gas resources, infrastructure, and market development.

First, regarding gas resources, total domestic gas output in the coming time will increase, contributing to the growth and development of PV Gas.

Second, PV Gas invests strategically and systematically in infrastructure development, with the orientation of "infrastructure first and markets later", in order to improve its competitiveness ans develop and dominate the markets.

Third, the corporation proactively promotes market activities related to both traditional and new customers.

"Gas/LNG is a source of energy that is environmentally friendly and will cater for the country's surging demand for development in the new era.

"PV Gas is expected to have strong development prospects in both short and long terms until 2050 as a key and leading enterprise in the Vietnamese gas industry, contributing to ensuring national energy security and energy for development in the country's "rising" period," he added.

In March this year, in Washington D.C., PV Gas signed MoUs with ConocoPhillips and Excelerate Energy on long-term LNG purchase agreements. Accordingly, Excelerate Energy and PV Gas will collaborate on a plan to secure reliable and stable LNG supply sourced from the United States as early as 2026.

On the Ho Chi Minh City, GAS of PV Gas closed last Friday at VND65,000 ($2.5) per share.

At the AGM, shareholders approved the 2024 cash dividend payment at a rate of 21%, equivalent to more than VND4.9 trillion ($188.34 million).

They approved a plan to increase PV Gas's charter capital by 3% in 2025 by issuing shares to increase equity from owners' capital. The AGM also okayed changes of business lines to suit the company's business activities.