PV Gas equitisation plans get official nod

The Government has approved the plans for the equitisation of PV Gas submitted by the National Oil and Gas Group (PetroVietnam).

The group’s chairman Dinh La Thang announced this news in Ha Noi on Monday.

According to the group’s evaluation, PV Gas was assessed to have a charter capital of roughly VND19 trillion (US$1 billion). Under the plans, the Government will hold 75 per cent stake of PV Gas, while about 10 per cent would be sold to the public.

The remaining assets would be sold to strategic investors, Thang said.

“The group now is selecting strategic investors and then will report to the Government for approval,” he added.

It is expected that PV Gas will officially make its initial public offerings (IPO) in the third quarter of this year.

During PV Gas’ equitisation process, the enterprise would have to set gas prices, said Thang.

“The Government assigned the Ministry of Industry and Trade and relevant State bodies to map out an appropriate guide for gas prices in order to ensure that the Government will be able to control gas prices and so that the company can operate effectively and profitably,” he said.

The price hike of the fuel will result in an increase in retail prices of other goods, which will increase inflation.

PV Gas reported VND30 trillion (US$1.58 billion) in revenue with a profit of VND3 trillion last year. It is estimated that the company will earn a VND40 trillion turnover with VND4 trillion in profits this year.

PV Gas was set up in September 2007 by the merging gas processing and trading Co Ltd with PetroVietnam members. The enterprise now have three member companies listed on the stock market. They include PV Gas D (PGD), PV Gas North (PVG) and PV Gas South (PGS).

“PetroVietnam will continue to equitise other subsidiaries and affiliates in a bid to sharpen their competitive edge, as well as competitiveness,” Thang said.

He greatly appreciated the effectiveness of its equitised companies. The group has already injected about VND1.2 trillion in its member firm – PetroVietnam Construction Jointstock Corp (PVC), and then it took back VND1.4 trillion.

The group invested roughly VND5 trillion in another member – PetroVietnam Finance Jointstock Corp (PVFC), and it also took back VND9 trillion, Thang said.

Viet Nam News

Tags: PV Gas, Vietnam gas, Vietnam oil and gas