PV Trans raises charter capital to over $139.8 million

June 25, 2024 - 08:15
PV Trans has completed the issuance of over 32 million new shares to pay 2021 dividends to shareholders.
A vessel of PV Trans. — Photo pvtrans.com

HÀ NỘI — The Hồ Chí Minh Stock Exchange (HoSE) has announced its approval for the PetroVietnam Transportation Corporation (PV Trans) to increase its charter capital.

PV Trans has completed the issuance of over 32 million new shares to pay 2021 dividends to shareholders. This has raised the company's charter capital to VNĐ3.56 trillion (US$139.8 million), a ten per cent increase.

In the first quarter, PV Trans reported net revenue of over VNĐ2.5 trillion and profit after tax of VNĐ306 billion, up 21 per cent and 27.5 per cent year-on-year, respectively. The results have allowed PV Trans to achieve 29 per cent of its annual revenue target and 40 per cent of its current profit goal.

According to assessments by several financial institutions, PV Trans' business prospects are positive, driven by the continued high levels of tanker charter rates.

PV Trans' existing low-priced crude oil and refined oil product tanker charter contracts are set to expire soon, which opens up opportunities for the company to secure new contracts at higher rates.

Additionally, industry forecasts indicate strong oil demand growth.

The Organisation of the Petroleum Exporting Countries (OPEC) estimates oil consumption in major markets like China and India will be 3.7 to 7.1 times higher than domestic supply during 2024-2025. This points to higher global demand for oil transportation services.

Further supporting the positive outlook, the ongoing Russia-Ukraine conflict and instability in the Red Sea region have led to longer transportation distances for oil shipments.

PV Trans currently has a fleet of 52 vessels, encompassing a diverse range of ship types including crude oil tankers, product tankers, oil/chemical tankers, LPG carriers and bulk freighters. The total carrying capacity of this fleet amounts to nearly 1.5 million deadweight tonnes (DWT).

A key strength is that around 85 per cent of PV Trans' fleet is deployed in the international market, with the majority operating under fixed-term charter contracts ranging from six months to one year in duration. This provides the company with stable revenue streams.

Shares of PV Trans were last traded at VNĐ28,400 a share on Monday. — VNS