Saturday, November 03, 2007

Petro Vietnam to list transportation unit on stock market

PV Trans plans listing to increase oil fleet

Procedures are underway for the crude oil transporter PV Trans to list on the HCM City Stock Exchange in mid-November, according to a company official.

Pham Viet Anh, general director for Petro Vietnam Transportation Corp. (PV Trans), said the reference price was set at 120,000 VND (7.8 USD) but added that there may be some adjustment.

With little foreign investment, the company is 60 percent owned by Petro Vietnam and has a chartered capital at 720 billion VND.

The company plans to increase its capital to 9.9 trillion VND by 2015 to expand its business, said Anh. Early next year, the company will double its capital to 1.44 trillion VND.

In anticipation of market demand, PV Trans estimates it will need almost 3 billion USD to build 44 new ships by 2015. Currently the company has two tankers for shipping crude oil mainly on international routes, each with a capacity of 100,000 tonnes.

Parent company PetroVietnam will export around 18 million tonnes of crude oil annually until 2009. By then, the oil refinery factory in Dung Quat will begin operation, and the export volume will decrease. Foreign tankers account for most of the exported volume.

Apart from the Dung Quat factory, PetroVietnam is developing a refinery in Thanh Hoa and another in Ba Ria – Vung Tau Province . Therefore the volume of crude oil shipped to and refined products coming from the company’s factories will increase, said Anh.

Due to expected market demand and new investments, PV Trans predicts a turnover of 100 million USD in 2010 and 600 million USD in 2015, with profit yields of 12 million USD and 125 million USD, respectively.

This year, profit is expected at 30 billion VND (1.85 million USD). Company officials attribute the low profit to their decision to make investment in new ships a priority. (VNA)