PetroVietnam Gas JSC (GAS) has approved a plan to increase its capital contribution in the Petrovietnam Southern Gas JSC (PGS) to 51 per cent of the company’s charter capital. GAS is currently the largest shareholder in PGS with 35.3 per cent of capital, followed by MB Capital, an investment arm of Military Joint Stock Commercial Bank, with 5.98 per cent of capital.
To increase ownership to 51 per cent, GAS will have to buy additional 7.87 million shares of PGS.
On the market, PGS closed yesterday at VND35.000 per share. If temporarily calculated according to this price, GAS is expected to spend about VND275 billion (US$11.8 million) for the purchase.
Although holding less than 51 per cent, GAS has long been recognised as the parent company of PGS.
PGS was established in 2000, equitised in 2007, and officially listed on the Ha Noi Stock Exchange on November 2007.
The liquefied petroleum gas (LPG) trading network of PGS includes more than 100 affiliated stores, 145 general agents, more than 5,000 agents and four storage systems nationwide with a capacity of 8,100 tonnes.
PGS aims to achieve LPG output of 300,000 tonnes per year by 2020, accounting for 40 per cent of the southern market share. Compressed natural gas (CNG) output is expected to reach 150 million cubic metres per year, accounting for 60 per cent of the CNG market share in the southern region.
In 2019, GAS plans to achieve consolidated revenue of VND63.9 trillion and after-tax profit of VND7.6 trillion, down by 15 per cent in revenue and 35 per cent in profit.
The dividend payment rate in 2019 is planned at 30 per cent.