Higher oil prices boost profits for Vietnam’s PV Gas

PetroVietnam Gas Corporation, Vietnam’s biggest listed energy firm, posted first half net revenues of VND37.5 trillion ($1.65 billion), equal to 66 percent of its annual target.

Its pre-tax profit jumped to VND6.6 trillion ($290 million), representing 82 percent of the year’s target.

The booming results were driven by higher global oil prices which traded around $71 per barrel in the first six months of the year, exceeding the company’s expectations by 42 percent, and increased production of light oil, LPG and condensate.

Le Nhu Linh, Chairman of the Ho Chi Minh-based company, also known as PV Gas, said the company is undertaking 24 projects this year, including pipelines that transport natural gas directly to consumers.

“To ensure gas supply, our company is negotiating with international partners to import gas from Indonesia and Malaysia through pipelines,” he said.

The company is also building infrastructure for liquefied natural gas (LNG) imports and seeking contractors for an LNG storage facility that can hold 1 million tons per annum.

Furthermore, PV Gas is looking to raise its stakes in two associate companies – PetroVietnam Southern Gas JSC and PetroVietnam Northern Gas JSC – to 51 percent in the second half of the year. It is also working on a plan for PetroVietnam, its parent company, to cut its ownership in PV Gas.

The company targets VND55.7 trillion ($2.4 billion) in total revenue in 2018 and VND6.4 trillion ($281 million) in post-tax profit, down 3.5 and 33.5 percent respectively from last year. These figures are based on expectations of crude priced at $50 a barrel and lower output this year.

PV GAS stock closed up 5.75 percent at VND92,000 per share on the southern stock exchange last week.