On June 26 morning, the 2020 Annual General Meeting of Shareholders of the Viet Nam National Petroleum Group (Petrolimex or PLX on the stock exchange) took place at the VCCI tower, No 9 Dao Duy Anh Street, Ha Noi.

The Presidium presides over the 2020 Annual General Meeting of Shareholders

Due to the complex developments of the Covid-19 pandemic in the world and Viet Nam, the general meeting was held two months later as scheduled in line with the Petrolimex Board of Management’s Resolution No 40/PLX-NQ-HĐQT dated March 12, 2020 and the Ha Noi Department of Planning and Investment’s approval document No 112/CV-ĐKKD dated March 25, 2020.

The 2020 Annual General Meeting of Shareholders marked novel steps of the apparent trends in the Industry 4.0. The whole programme of the meeting was digitised and made available online thanks to the use of new software solutions and technologies to ensure information transparency and to facilitate shareholders at home and abroad to attend the event without any fear of Covid-19.

At its key location, the meeting witnessed the full attendance of the members of Petrolimex Board of Management, Board of Supervisors, Board of Directors and representatives of the key owner – the Commission for the Management of State Capital at Enterprises (CMSC).

The meeting elected the Presidium including three members: Petrolimex Chairman Pham Van Thanh – Head of the Presidium, and Petrolimex Board of Management members – Director General Pham Duc Thang and Deputy Director General Tran Ngoc Nam.

In 2019, facing negative impacts from unfavourable elements such as the world crude oil price, unstable domestic supply, sharp increase of domestic suppliers and distributors and unhealthy competition in petroleum sector, among others, Petrolimex eco-system continued showcasing a sustainable cohesion, creating relatively comprehensive business and production results with basic targets reaching and exceeding those assigned by the Annual General Meeting for the fifth consecutive year: Output reached nearly 13.9 million tonne, equal to 113.6 per cent of the set target; the Group’s total consolidated revenue was VND189,604 billion ($8.2 billion); Pretax earnings reached VND5,648 billion ($244 million), exceeding 7.6 per cent of the target); State budget contribution of VND44,519 billion ($1.9 billion), an increase of 15.3 per cent year-on-year; Parent Company’s dividend payment was 30 per cent, equivalent to VND3,572 billion ($154 million).

The year 2019 reported the third consecutive year that Petrolimex had been honoured as the “Champion of Revenue” in the list of “Viet Nam’s Top 50 listed firms” by Forbes Viet Nam; and demonstrated the vibrant development of Petrolimex brand value as the Group was ranked in the Top 10 by Brand Finance (with value estimated at US$447 million) and Top 20 by Forbes Viet Nam (valued at over $100 million).

The Covid-19 pandemic prevented a favourable start of 2020 worldwide. For the first time in history, the US benchmark WTI crude oil price collapsed on April 20, falling to -$37.63/barrel for contracts that expired in May. Economists forecast that the global economy is likely to show negative growth and losses caused by the SARS-CoV-2 virus are even larger than the economic crisis in 2007-2009 period.

Petrolimex’s petroleum business in the first quarter of 2020 also suffered from negative impacts of Covid-19. In the second quarter, the petrol price rebounded although the increase was not equal to the sudden drop in the first quarter. It is estimated that Petrolimex may gain VND350 billion ($15 million) (just an estimate as it was still not the end of June).

Firmly believing in the Government’s strong commitment to stop the second wave of Covid-19 from spreading in Viet Nam to successfully implementing the “double target” of epidemic prevention and socio-economic development, Petrolimex Annual General Meeting of Shareholders agreed on the direction of operation for 2020: Maintain stable and sustainable development, Enhance business efficiency through management quality and effective use of capital; Set a minimum profit target of VND1,570 billion (roughly $50 million); Maintain the expected dividend payment for 2020 at least 12 per cent.

Addressing the event as a representative of the State – Petrolimex’s biggest shareholder, CMSC Deputy Chairman Ho Sy Hung highly spoke of Petrolimex General Meeting of Shareholders being held online in the context of the current Covid-19 pandemic, which is both a pilot test in the framework of law for the following similar activities, and a practical and objective reality in order to cut costs, and ensure human safety.

The CMSC Deputy Chairman said in the past eight years operating as a joint stock company, Petrolimex has consistently achieve higher production and business results through years. However, he said, in 2020, the Covid-19 pandemic has disrupted production and business results of Vietnamese enterprises, including Petrolimex.

“Thus, the adjustments of business targets in 2020 is necessary. CMSC will accompany and assist Petrolimex to the full in carrying out the tasks of production, business and development investment in 2020,” said Hung.

The 2020 Annual General Meeting of Shareholders affirmed the unity, unanimously overcoming difficulties and challenges, and strongly believing in the commitments of the Board of Management, Board of Directors and the whole Petrolimex staff making further efforts to maintain stable and sustainable development with the added values for shareholders, customers and partners; deserving the role as the key enterprise in Viet Nam’s economy.