Japan’s top energy company to increase Petrolimex stake
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Japanese oil giant ENEOS Corporation has registered to buy 25 million shares of fuel distributor Petrolimex on the Ho Chi Minh Stock Exchange.
The transaction, to be completed in March, if successful, will see ENEOS increase its stake in Petrolimex to 2.94 percent. It had acquired a 1 percent stake last September.
Petrolimex’s PLX shares closed at VND57,300 on February 24, and at this price the deal will cost ENEOS around VND1.4 trillion ($62 million).
The company’s subsidiary, JX Nippon Oil & Energy Vietnam Consulting and Holdings Company Limited, owns another 8 percent stake in Petrolimex.
ENEOS is the largest oil company in Japan with a 47 percent market share.
In 2020, due to the impact of Covid-19, Petrolimex saw revenues fall 34.5 percent to VND123.9 trillion. Its net profit was VND1.2 trillion, a 73.6 percent fall.
Questions & Answers
Q.What will be ENEOS' total stake in Petrolimex after this transaction is completed?
What will be ENEOS' total stake in Petrolimex after this transaction is completed?
After the transaction, ENEOS will directly own 2.94 percent of Petrolimex. Including its subsidiary's holdings, the total stake will be 10.94 percent, combining the direct 2.94 percent and the subsidiary's 8 percent share.
Q.How did Covid-19 impact Petrolimex's financial performance in 2020?
How did Covid-19 impact Petrolimex's financial performance in 2020?
In 2020, Petrolimex experienced a significant revenue decline of 34.5 percent, falling to VND123.9 trillion. Its net profit also saw a sharp decrease of 73.6 percent, settling at VND1.2 trillion for the year.