Workers operate PetroVietnam Gas’s PM3-Ca Mau gas pipeline in Ca Mau Province. — VNA/VNS Photo Huy Hung

Viet Nam NewsHÀ NỘI — PetroVietnam Gas Joint Stock Corporation (PV Gas) has raised its full-year profit forecast by 18.4 per cent as oil has performed well and traded at higher than expected price levels.

PV Gas – a member of the Việt Nam National Oil and Gas Group (PetroVietnam or PVN) – increased its expected full-year revenue and post-tax profit to VNĐ52 trillion (US$2.31 billion) and VNĐ6.1 trillion, respectively.

The company had previously planned to achieve its target of VNĐ47.84 trillion in revenue and VNĐ5.15 trillion in post-tax profit for 2017. The old figures were passed by shareholders at the firm’s annual shareholder meeting in April 2017.

The estimates were 3 per cent to 7 per cent higher than the results in 2016 as oil prices had traded around the average US$54 a barrel, beating the company’s expected oil price of $50 a barrel.

Global crude prices have recovered steadily since they hit record-low levels in January 2016. Brent crude finished January 2016 at $34.74 a barrel and US crude West Texas Intermediate (WTI) was at $33.62 a barrel.

Both benchmark crude units have risen firmly from their bottoms for almost two years. Brent crude has gained nearly 84 per cent to trade at $63.85 a barrel on Wednesday while WTI crude has increased by nearly 72 per cent to $57.76 a barrel.

In the first three quarters of 2017, PV Gas recorded VNĐ47.9 trillion in net revenue, up 9.1 per cent year on year, and VNĐ5.9 trillion in post-tax profit, up 47.4 per cent year on year.

PV Gas shares, listed as GAS on the HCM Stock Exchange, have gained more than 3.3 times since the lowest level of around VNĐ27,640 ($1.23) per share in mid-January 2016 to VNĐ93,100 per share on yesterday, back on track to break PV Gas’ record-high share value of VNĐ99,970 hit in late August 2014.

PVN ownership curb

PV Gas is developing a plan that would help PVN reduce its ownership in PV Gas to 65 per cent from the current 95.8 per cent, according to the firm’s restructuring regime for the 2016-20 period.

According to HCM City Securities Corp (HSC), PVN is likely to sell its stake in PV Gas in 2019 as the country-leading energy conglomerate is now busy divesting from other member companies.

PVN has planned to transfer a part of its shares in PetroVietnam Power (PV Power), PetroVietnam Oil (PV Oil) and Bình Sơn Refining and Petrochemicals Co Ltd (BSR) to strategic investors.

PV Gas has also planned to withdraw parts of its capital in some subsidiaries such as PetroVietnam Fertiliser and Chemicals Corp (DPM), PetroVietnam Fertiliser JSC (DCM) and PetroVietnam Insurance Corp (PVI).

In addition, PV Gas could raise its stakes in two associate companies – PetroVietnam Southern Gas JSC and PetroVietnam Northern Gas JSC – to 51 per cent from 35.26 per cent and 35.88 per cent respectively, before PVN cuts its ownership in PV Gas. — VNS