PSH shares have been placed on the warning list.

Báo Đầu tư•08/04/2024

The audit report contained three qualified opinions, causing the shares of Nam Song Hau Petroleum Trading and Investment Joint Stock Company (PSH) to be placed on the warning list by the Ho Chi Minh City Stock Exchange (HoSE) from April 10th.

The Ho Chi Minh City Stock Exchange (HoSE) recently decided to place PSH shares of Nam Song Hau Petroleum Trading and Investment Joint Stock Company under warning status from April 10th. According to HoSE, the reason is that the auditing firm issued a qualified opinion on Nam Song Hau's audited financial statements for 2023.

The news that PSH shares were placed on the warning list caused intense selling pressure during the last trading session of last week and the beginning of this week. Specifically, PSH is experiencing a streak of three consecutive days of decline, including two sessions where it lost its maximum allowed price increase. In the morning session of April 8th, the share price fell 7% to 6,600 VND and was in a state of having no buyers. The trading volume in the hour after opening exceeded 1 million shares. Compared to the price of 10,300 VND at the beginning of the year, the current share price of PSH has decreased by as much as 36%.

Regarding the audited financial statements, TTP Auditing Company Limited issued three qualified opinions for Nam Song Hau.

The first exception concerns the fact that Nam Song Hau was subject to a tax enforcement decision by the Hau Giang Provincial Tax Department, which involved suspending the use of invoices from December 18, 2023, to December 17, 2024, amounting to VND 1.139 billion, and by the Can Tho City Tax Department, which also enforced the suspension of invoice usage from December 22, 2023, to December 23, 2024, amounting to VND 92.5 billion. The total revenue for the year for which no invoices were issued was VND 236.8 billion.

According to the explanation from Nam Song Hau's management, in December 2023, due to financial difficulties, the company liquidated some investment properties in Soc Trang, Dong Thap , and Tra Vinh provinces. However, due to the tax authorities enforcing an administrative decision on tax management by suspending the use of invoices, the company temporarily recorded revenue from the real estate transfer without issuing invoices. "In the future, after the company fulfills its tax obligations to the state, it will issue valid invoices for the above revenue," Nam Song Hau's management stated.

In the financial report, the auditors also issued a qualified opinion stating that outstanding and overdue payments to the state budget indicate the existence of material uncertainties leading to significant doubts about the company's ability to continue operating. However, Nam Song Hau's management affirmed that the company has a plan to overcome financial difficulties. Specifically, on February 27th, the company signed a loan approval agreement with its partner, Acuity Funding. According to the plan, Acuity Funding will disburse $290 million to the company in the second quarter of 2024.

"With Acuity Funding's 20-year long-term credit financing, the company will receive significant support in restructuring its outstanding tax debts, overdue debts, and bond debts, thereby reducing financial pressure and helping the company overcome difficulties and achieve stable and sustainable growth," the Nam Song Hau management stated.

Regarding the qualified opinion concerning the auditor's inability to determine the existence of inventory value, the management stated that the company's inventory, valued at VND 4.654 billion, is currently stored in numerous different warehouses and all have complete purchase and inventory receipts. Due to the ongoing handover between old and new personnel, suitable time and personnel have not yet been arranged to conduct an inventory verification.

Nam Song Hau operates primarily in the import, export, and trading of petroleum products, refined petroleum, and liquefied petroleum gas. The company was established in Hau Giang in early 2012 and listed on the stock exchange in mid-2020. The company currently has a charter capital of over VND 1,261 billion, with Mr. Mai Van Huy (Chairman of the Board of Directors) holding 62.53%. It is one of the largest petroleum businesses in the Mekong Delta with a network of over 52 branches.

In 2023, Nam Song Hau recorded revenue of VND 6,099 billion, a decrease of 17% compared to 2022. After deducting expenses, the company made a net profit of VND 51 billion, while in the same period it incurred a loss of VND 236 billion.

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