Shares of major power and oil and gas companies receive warnings.

From today (March 23), more than 1 billion shares of Vietnam Oil Corporation (PV Oil) on UPCoM are placed under warning status because the 2022 financial report received qualified opinions from the auditing firm for three consecutive years or more.

Specifically, the auditors issued three exceptions related to the investment in Petrochemical and Biofuel Joint Stock Company (an affiliate of PVOIL); other receivables from the Vietnam Oil and Gas Group amounting to VND 169.79 billion - representing losses at the Technical and Investment Trading Corporation (a subsidiary of PVOIL) during the enterprise valuation period up to the time of official conversion to a joint stock company (May 18, 2011); and the value of land plots of Saigon Petroleum Joint Stock Company (a subsidiary of PVOIL)...

PVOIL shares were placed on the warning list from March 23rd.

In response to the above information, PVOIL stated that the aforementioned audit exceptions were issues that occurred before the company's equitization. Therefore, these issues have existed in the financial statements since the transition to the joint-stock company model. Although PVOIL has made many efforts to resolve them, due to various objective reasons related to state mechanisms and policies, these issues have not yet been completely resolved.”

According to PVOIL, the aforementioned exceptions do not significantly affect the company's orientation, development plans, and business operations, nor do they affect its existence or trading of shares on the UPCoM exchange. Currently, PVOIL shares are trading around 8,700 VND.

Similarly, shares of Pha Lai Thermal Power Joint Stock Company (PPC) were placed under warning status from March 29th. This was due to a qualified opinion issued by the auditing firm, KPMG Vietnam Co., Ltd., regarding the 2022 financial statements. KPMG stated that PPC had not recorded the revenue from electricity refunds after the issuance of the previous year's financial statements due to metering equipment errors from December 2018 to March 2022, totaling VND 161.93 billion. This is inconsistent with current accounting regulations.

According to PPC's explanation, in April 2022, the unit inspecting the voltage transformers (TUs) discovered errors in the transformers. When reviewing past data, errors dating back to 2018 were found. Since voltage transformers are only inspected once every five years, the buyer and seller temporarily determined that the inspection and error detection occurred between December 2018 and March 2022. The relevant parties held several meetings to develop a method for calculating these errors. PPC provisionally estimated and recorded a reduction of VND 161.93 billion in refunded revenue in the fourth quarter of 2022.

However, to date, the parties have not agreed on the details regarding the refund of revenue due to incomplete documentation and the method for determining production volume and unit price. Therefore, PPC does not have sufficient basis to record it in its 2022 financial statements. PPC's share price is currently at VND 14,350.

Source: https://thanhnien.vn/co-phieu-ong-lon-nhiet-dien-dau-khi-bi-canh-bao-185230323160635258.htm