More IPOs in oil and gas industry planned

July 22, 2016 - 09:00

There would be more auctions of shares from oil and gas companies in the second half of 2016 under the directives of the government on equitisation of state-owned firms.

PetroVietnam Oil Corporation, besides PetroVietnam Power Company and Bình Sơn Refinery are big names in the oil and gas industry expected to IPO in the second half of this year. - VNA/VNS Photo
Viet Nam News

HÀ NỘI  — There would be more auctions of shares from oil and gas companies in the second half of 2016 under the directives of the Government on equitisation of State-owned enterprises.

Deputy Prime Minister Trịnh Đình Dũng told the first half meeting of the PetroVietnam Group (PVN) last week that the group should continue to promote the restructuring of enterprises and investment activities.

In the last half of 2016, there will be the initial public offering (IPO) of three big names in the oil and gas industry including PetroVietnam Power Company (PV Power), PetroVietnam Oil Corporation (PV Oil) and Bình Sơn Refinery (BSR).

PV Power which was the second largest electricity producer in Việt Nam after the Electricity of Việt Nam (EVN), would hold an IPO in October, then have the first general assembly, and business registration as a joint-stock company in December of this year. After equitisation, PVN would hold 75 per cent stakes in PV Power.

In the first half, PV Power earned a revenue of VNĐ12.3 trillion and a profit after tax of VNĐ897 billion, which was 149 per cent higher than its plan. The firm said it had so far contributed VNĐ563 billion to the State budget this year.

Meanwhile, PV Oil, the No 2 in petroleum market, after Petrolimex, planned its IPO in the fourth quarter. It was now looking for a foreign partner to sell stakes in the upcoming IPO.

The Bình Sơn Refining and Petrochemical Co (BSR), which operates and manages Dung Quất Oil Refinery, was also planning its IPO in late 2016.

Another firm of PVN, the PetroVietnam Machinery and Technology JSC (PVMachino), a member of the Power Corporation Oil and gas (PV Power), was also expected to be listed as soon as possible as per the shareholders’ desire for nearly six years.

The firm’s leaders used to tell shareholders that they would list the shares when the firm got better business results. Last year PV machine reported sales of VNĐ664 billion and the profit of VNĐ15.6 billion, 11 per cent and 4 per cent higher, respectively, than planned. Therefore, many shareholders suggested that it was time for the stock to be listed.

On July 12, Bình Sơn Refinery (BSR) offered 7.97 million shares, equivalent to 45.53 per cent of the charter capital in PetroVietnam Building and Commercial JSC (PV Building), a member of the PetroVietnam Oil and Gas Group (PVN).

After the auction, 2.3 million shares or 29 per cent of the shares offered were sold. Trần Ngọc Nguyên, CEO of the BSR said, the firm would reduce its ownership from 96.53 per cent to 51 per cent so that PV Building could be listed on the stock market as a public company. Thus, most likely, BRS would continue to sell about 5.7 million PV Building shares after the auction.

PV Building, with a charter capital of VNĐ175 billion, produced packaging and plastic products, housing management services as well as restaurants and accommodation that mainly served the Dung Quất Oil Refinery in Quảng Ngãi Province.

In 2015, PV Building achieved a net profit of VNĐ10.8 billion and planned a growth of 30 per cent annually in the future. – VNS