On December 6, 2022, the second 2022 Extraordinary General Meeting of Shareholders of the Vietnam National Petroleum Group (Petrolimex/ Group – stock symbol: PLX) was held via online platforms at the Group’s Office, VCCI Tower, No 9 Dao Duy Anh, Hanoi.

The Extraordinary General Meeting was called in accordance with Announcement No 1789/PLX-HĐQT dated November 15, 2022 by Petrolimex Board of Management with the aim to discuss and vote on contents under the authority of the General Meeting of Shareholders (GMS), which was made known to the shareholders at the website petrolimex.com.vn.

Though the COVID-19 has been contained, Petrolimex decided to organise the second Extraordinary General Meeting of Shareholders in 2022 via video link to facilitate the attendance of domestic and foreign shareholders and to enable them to fully monitor the progress of the Meeting. 

In attendance at the meeting’s main location were members of the Petrolimex Board of Management, Supervisory Board, and Board of Directors; and representatives from the Owner Representative Agency – the Commission for the Management of State Capital at Enterprises (CMSC).

The meeting elected a five-member presidium, including: Petrolimex Chairman Pham Van Thanh – President; Board of Management member – Petrolimex Director General Dao Nam Hai; Board of Management member – Petrolimex Deputy Director General Tran Ngoc Nam; Board of Management member – Petrolimex Deputy Director General Nguyen Thanh Son; and Board of Management member – General Director of ENEOS Vietnam Co., Ltd. (ENEOS) Ken Kimura.

The Presidium members presented three reports to the General Meeting of Shareholders: “Restructuring Petrolimex in the 2021-2025 period with a vision to 2035”; “Adjustment of business and production targets in 2022”; and “Business and production, and development plans for Petrolimex in the 2021 – 2025 period”.

With the “Restructuring Petrolimex in the 2021-2025 period with a vision to 2035” project, Petrolimex sets the target to continue developing as a key State-owned enterprise and a large economic group to well perform its central role in supply and demand balancing, and in ensuring sufficient supply of fuels, promoting its principal role in stabilising and guaranteeing energy security; maintaining its position as the largest enterprise in the Vietnamese market in petroleum downstream business as well as in trading clean and environmentally friendly energy products before 2035, striving for multinational business before 2045.

The Group also targets to restructure the Parent Company’s capital, ensuring sufficient financial capacity to invest in key projects to ensure the Group’s growth; restructure investment capital in subsidiaries, creating businesses in the Group with large equity capital and financial potential, ensuring improved efficiency of investment capital; and make efforts to increase benefits for shareholders, labourers and community, and for the national socio-economic development cause. 

With the “Adjustment of business and production targets in 2022” project, the cause comes from the impact of many factors such as abnormal fluctuations of the oil prices and energy supply in the world, operating mechanisms related to base price components, and the incident of the Nghi Son Refinery and Petrochemical. As the impacts are force majeure beyond predictability when formulating the Group’s plan, the adjustment is necessary and in accordance with regulations; as shown in the following table:

Although the pre-tax profit target is proposed for adjustment, the Group’s surplus is able to pay a stock dividend of 12 per cent as planned. This is in line with CMSC’s approval and the roadmap to increase charter capital under the Group restructuring project.

The “Business and production, and development plans for Petrolimex in the 2021-2025 period” project closely follows targets set in the “Restructuring Petrolimex I the 2021-2025 period with a vision to 2035” project through the synchronous implementation of numerous strategic solutions and activities on: market; finance; human resource development; scientific, technological and environmental research; petroleum retail network planning; corporate culture building; and brand communications.

On behalf of the representative of the State ownership – the biggest shareholder at Petrolimex, Director of CMSC’s Department of Industry Nguyen Tuan Anh said contents approved at the Extraordinary General Meeting is the result of two years of studying, perceiving, continuously adjusting, and acknowledging unpredictable fluctuations of the world and domestic energy markets. Understanding pressures facing Petrolimex, Anh said he expected that the whole Petrolimex leaders and staff will overcome difficulties, and seize opportunities to strengthen market advantages, and improve Petrolimex’s position in the national economy.

On behalf of the Petrolimex Board of Management, Chairman Pham Van Thanh thanked Director Nguyen Tuan Anh for his directions; saying that he would do his utmost, together with Petrolimex Board of Management and Board of Directors members to fulfil tasks assigned by CMSC, increasing interests and benefits for shareholders, labourers, community, and for the national socio-economic development cause.

The second 2022 Extraordinary General Meeting of Shareholders took place in the context of complicated, abnormal and unpredictable developments of the oil and gas market; Petrolimex’s performance markedly decreased as compared to the plan approved by the GMS as a result of: actual source generation costs are higher than structural costs in the base price; increased costs of creating import sources; decreased profits due to delay in price adjustment and high exchange rate. The adjustment of 2022 targets approved by the General Meeting of Shareholders will create motivation for the whole Petrolimex leadership at all levels and staff to make all-out efforts to best fulfill the set targets, proudly affirming the key role of the State-owned business in ensuring fuel supply for the people and the economy.