PetroVietnam Transportation Company (PVTrans), a subsidiary of PVN, held its 2023 AGM at Lotte Legend Saigon Hotel in Ho Chi Minh City on April 11.
During the meeting, Pham Viet Anh, chairman of the PVTrans (HSX:PVT) Board of Directors, said that despite the challenges and uncertainty of the global macroeconomic headwinds, the company still boasts tremendous potential.
"PVTrans has attained record growth for 11 consecutive years, and each year's profit has always been greater than the last. This is rare for companies listed on the stock exchange in Vietnam. The oil, gas, and transport industries are particularly vulnerable to geopolitical and macroeconomic fluctuations. Despite this, PVTrans has effectively restructured from being under threat of insolvency to showing remarkable development that contributes significantly to PVN’s revenue,” Anh emphasised.
Despite fluctuations in the stock market, PVT shares have remained stable with high liquidity, providing shareholders with substantial benefits.
The firm maintains a cautious business strategy, with a target of VND6.8 trillion ($290 billion) in revenue, up 71 per cent on-year, and VND538 billion ($23 million) in after-tax profit for 2023, up 46.5 per cent on-year
Notably, Anh suggested that company profit could exceed VND1 trillion ($42.6 billion) this year if market conditions are favourable. PVTrans recorded a pre-tax profit of approximately VND278 billion ($11.8 million) In the first quarter, equivalent to 40 per cent of this year's overall target and representing an increase of 11 per cent on-year.
PVTrans is expected to invest approximately $164 million into expansion in 2023, of which, $109 million will be spent on the firm’s transitional projects, and $55 million will be spent on new ships.
The healthy profit margin may be attributed in part to the company's reorganisation, refinancing, and adaptive usage of comprehensive financial hedging strategies that balance debt duration, amortisation, and floating interest rates. The company's existing onshore and offshore loans are mostly provided by global financial institutions, like OCBC and Citibank, at favourable interest rates.
The total average loan interest rate of PVTrans's total fleet is estimated to be 30 per cent lower than that of other fleets in Vietnam. To access such preferential capital, the firm has had to prove its capability of being a sustainable enterprise in line with stringent international financial and sustainability indicators.
The ongoing Russia - Ukraine war is still stifling trade and logistics, driving up demand and costs for shipping around the world. Securities firm SSI forecasts that the company will actually benefit from this.
“There is potential for a 15-20 per cent rise in first-quarter pre-tax profits in 2023 compared to the same time in 2022. In addition, unusual profit recorded from asset sale transactions, if any, could add up a bulk of cash for PVTrans,” SSI noted.
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