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Petrol distributor plans to diversify operations

Update: August, 29/2012 - 11:23
HA NOI — State-owned petroleum distribution giant Petrolimex will develop liquefied natural gas and petrochemical industries alongside its current focus on fuel import and distribution, pursuant to a business plan through 2015 approved by the Prime Minister last week.

The plan includes strategic measures to transform Petrolimex into a large-scale economic group using high technology and playing an important role in stabilising the domestic petroleum market and ensuring national energy security.

Under the plan, Petrolimex has also targeted annual earnings by 2015 of over VND358 trillion (US$17 billion) and pre-tax profits of nearly VND4.5 trillion ($214.3 million).

To achieve its goals under the plan, Petrolimex would review its distribution system to increase efficiency of trade transactions and improve product quality. It also intended to expand its network of direct dealers to remote, border and island regions.

The group would also focus on developing warehouses and ports in all major regions of the country to receive imported petroleum products.

To finance its planned growth, it would seek capital from equitisation and bank financing.

The group needed VND5 trillion ($238.1 million) for construction of its Nam Van Phong refinery complex alone, plus another VND4.2 trillion ($200 million) to develop distribution infrastructure.

Under instructions from the Prime Minister requiring it to withdraw investment from non-core and inefficient lines of business, the group would complete a restructuring plan in the third quarter of this year. — VNS

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