PVTrans surpassed its 2023 financial targets

PVTrans' CEO Nguyen Duyen Hieu reported significant financial accomplishments for 2023. "The company achieved revenues exceeding VND10 trillion (approximately $422 million), almost 150 per cent above our target. Our post-tax profits reached VND1.22 trillion (about $51 million), exceeding our profit target by 227 per cent," Hieu said.

Discussing the company’s investment strategy, Hieu highlighted the successful expansion and modernisation of the fleet.

"Last year, we grew our fleet to 51 vessels by acquiring and chartering 12 new ships. Despite the high costs of borrowing, steel, and ships, our strategic investments have started to pay off, and we expect them to yield positive results in the coming years," he said.

Hieu provided an optimistic outlook for 2024 in the liquid cargo transport market, including crude oil and petroleum products.

"The market is expected to maintain a positive trend, supported by stable export volumes in the Atlantic region and steady demand from China, alongside a revival in refinery operations. Moreover, geopolitical tensions and the Russia-Ukraine conflict, which have extended shipping times and routes under a limited vessel supply, are likely to drive up freight rates," he explained.

He also noted that while the liquefied petroleum gas transportation market is set to remain favourable, freight rates might slightly decrease from their late-2023 highs. The market is anticipated to stabilise as the impact of previous price disparities and disruptions decreases.

Hieu anticipates a recovery in the bulk cargo market in 2024, driven by a positive supply and demand balance, though he noted it might not reach the record levels of 2021-2022.

On the financial front, PVTrans has set ambitious targets for 2024: a revenue goal of VND8.8 trillion (approximately $367 million), up almost 30 per cent from 2023, and a post-tax profit target of VND760 billion (around $31.7 million), marking a little over 41 per cent increase. The company also plans to contribute VND354 billion (about $14.8 million) to the state budget.

PVTrans has earmarked $58 million for ongoing projects to finance a 'Very Large Gas Carrier', an Aframax ship, and two Medium Range (MR) tankers. An additional $22 million will fund a new chemical/oil tanker or bulk carrier, and a further $52 million has been allocated for two new MR tankers and an Aframax this year.

Pham Viet Anh, chairman of PVTrans, said, "By increasing and rejuvenating our fleet, we have significantly boosted our competitive capacity, transforming our vessels into profitable assets that will benefit the company's future."

Anh emphasised a cautious investment strategy for the year ahead, saying, "It’s crucial to carefully consider each investment to avoid potential long-term consequences."

PVTrans is committed to operating its fleet safely and efficiently, ensuring timely transportation of crude oil and refined products from key refineries like Dung Quat and Nghi Son.

"We will continue to expand and enhance our management, operations, and related services for Floating Storage and Offloading (FSO) units, while actively pursuing new business opportunities to boost our operational effectiveness," added Anh.

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