Petrolimex to issue more shares, increase charter capital

March 12, 2016 | 10:21

(0) user say

Deputy Prime Minister Vũ Văn Ninh has agreed with the Ministry of Industry and Trade's plan to issue more stakes and increase the charter capital of the Vietnam National Petroleum Group (Petrolimex).

Customers at a Petrolimex gas station. The company's chartered is expected to raise from VND10.7 trillion currently to VND13.5 trillion. - Photo VNA

The measure is part of the group's restructuring process.

The group's charter capital is planned to raise to VND13.5 trillion ($604.7 million) from its current capital of VND10.7 trillion.

The Ministry of Industry and Trade (MOIT) said that in order to increase Petrolimex's charter capital and reduce the State's ownership proportion at the group to fewer than 75 per cent of charter capital, the ministry has approved a plan to issue more ownership to Petrolimex's foreign strategic shareholders.

The Deputy Prime Minister reminded the ministry to revise regulations, which are unsuitable with the current situation, to ensure that foreign strategic investors will partner with Petrolimex to invest long-term in the Nam Vân Phong oil refinery project in the central Khánh Hia Province.

Previously, Nikkei reported that the Japanese JX Nippon Oil & Energy Corporation planned to buy 10 per cent of Petrolimex's stake.

The Japanese partner will pay about 20 billion yen ($177 million) for its share at Petrolimex.

As of December 31, Petrolimex's total assets reached VND51 trillion. The company earned VND146 trillion of revenue and VND3.76 trillion of pre-tax profit.

By the end of 2014, Petrolimex accounted for 48 per cent share of the petroleum distribution market in Việt Nam with more than 2,300 gas stations nationwide.

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional