Illustrative photo. (Photo: Duc Duy/Vietnam+)

Petrolimex’s listing on the stock exchange has proved very successful, as the Group’s capitalisation has increased to VND114 trillion (US$5 billion) as compared to the initial capital of approximately VND9 trillion ($396 million) at the time of equitisation in 2012, that is a ten-fold increase from five years ago.

Chairman of Vietnam National Petroleum Group’s Board of Management Bui Ngoc Bao was speaking at a meeting to review tasks for 2017 and define tasks for 2018 of the industry and trade sector in Hanoi on January 15.

Contribution to State budget up 10%

Regarding business outcome, Bao said, Petrolimex continued to be a big contributor to the State budget in 2017. The Group collected VND156 trillion ($6.86 billion) in 2017 revenue and contributed VND36 trillion ($1.6 billion) to the State budget, an increase of 10% as compared to 2016.

With the performance, Petrolimex earned profit of approximately VND5 trillion ($220 million) and ensured to meet targets set by the Ministry of Industry and Trade and the Annual General Meeting.

Implementing the roadmap to replace the mineral petrol RON 92 with the bio-fuel E5 RON 92 as of January 1, 2018, Bao said Petrolimex had done it one month ahead of the schedule and ensured the distribution of the bio-fuel at about Petrolimex’s 2,500 petrol stations in all 63 cities and provinces nationwide.

"By this time, the market for RON 95 petrol is completely stable and Petrolimex has also put on sale the highest quality product, that is Euro 5 standard diesel,” said Bao.

Speaking to local media recently, Petrolimex Deputy Director General Nguyen Quang Dung said, the trading of the highest quality Euro 5 standard diesel is the Group’s business strategy “competition by the quality of professional products and services.”

Chairman of Petrolimex Board of Management Bui Ngoc Bao makes a remark at the industry and trade sector’s meeting to review 2017 tasks and define 2018 tasks. (Photo: Duc Duy /Vietnam+)

Listed to increase transparency

Speaking about the success of Petrolimex’s listing on the stock exchange, the Petrolimex leader said the Group’s equity had increased ten times as compared to 2012 when the enterprise began equitisation.

Bao highlighted the crucial role of strategic shareholders to help Petrolimex yield such outcome. Currently, Japan’s top oil refiner JX Nippon Oil & Energy Corp is holding an 8% stake in the Group.

Bao emphasised that, along with strategic investors, the corporation has fundamentally changed its governance towards internationalisation and transparency in the stock market.

"The public often question about the transparency of the petroleum sector, thus, the listing on the stock exchange forces the corporation to list and publicise all financial activities, including the change in management work which is crucial to State-own enterprises when equitised and listed on the stock exchange.”

In order to complete the petroleum market in the coming time, Bao proposed the ministries of Industry and Trade, and Finance to soon stabilise taxes and avoid big differences.

Additionally, the Petrolimex leader suggested that the two ministries should minimise import taxes, whilst introduce policies to stabilise market for State-prioritising items such as E5 RON 92 and other high quality petrol products to ensure smooth operation of the petroleum system in the time to come./