JX Nippon Oil & Energy investment in Petrolimex bears fruit in first year

July 11, 2017 | 23:07

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With the pay-out ratio of 32.24 per cent, each shareholder of Vietnam National Petroleum Group (Petrolimex) will receive VND3,224 ($0.14) per share. The petroleum giant will pay a total of VND3.736 trillion ($165.7 million) in cash dividends for 1.16 billion outstanding shares.

JX Nippon Oil & Energy investment in Petrolimex bears fruit in first year

Becoming a strategic investor in the state-run Petrolimex a year ago, JX Nippon Oil & Energy is receiving $14.8 million in dividends this year

JX Nippon Oil & Energy currently holds 103,528,476 PLX shares, accounting for 8 per cent of Petrolimex’s outstanding shares. For this, the foreign strategic investor will receive a cash dividend of VND333.7 billion for 2016, tantamount to $14.8 million.

Following the VND9 billion ($399,000) loss in 2014, the biggest fuel distributor in Vietnam looked to sell between 15 to 25 per cent of its stakes to raise chartered capital and reduce state holding in the group to below 75 per cent.

In April 2016, after nearly two years of negotiations, JX Nippon Oil & Energy officially acquired 8 per cent of Petrolimex’s shares for around ¥20 billion, approximately $183 million.

With Petrolimex’s positive business outcomes following the restructure, JX Nippon Oil & Energy can taste the sweet fruits of its investment after a single year. The dividend payment will take place at the end of August 2017.

The Ministry of Industry and Trade is currently representing the state as a stakeholder, with 75.87 per cent in Petrolimex, equal to 982 million shares. The state is looking at more than VND3.16 trillion ($140.1 million) in dividend payment.

Petrolimex officially listed on the Ho Chi Minh City Stock Exchange (HOSE) on April 21, 2017 at VND43,200 ($1.9) per share. The current price of PLX shares is VND69,000 ($3).

As of December 31, 2016, Petrolimex’s total assets reached VND54.2 trillion, approximately $2.4 billion. Its consolidated net revenue in 2016 was VND123 trillion ($5.46 billion) and pre-tax profit reached VND6.3 trillion, or $279.4 million (up 68 per cent compared to 2015).

Petrolimex to sell 8 per cent stake

Vietnam National Petroleum Group (Petrolimex) will offer 103.5 million ordinary shares, or eight per cent of its stake, to the Japanese JX Nippon Oil & Energy Corporation, officials said.

Petrolimex to sell large stake to JX Nippon Oil & Energy

The Viet Nam National Petroleum Group (Petrolimex) is accelerating negotiations with its strategic Japanese investor, JX Nippon Oil and Energy, to sell 15-25 per cent of its stakes through a share issue to raise charter capital.

By By Thanh Huong

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