Vietnam Oil and Gas Group (PVN) must reduce its ownership in PVcomBank to 15% of charter capital by the end of 2025, according to the restructuring plan recently approved by the Government .
According to the restructuring project until 2025, which was just signed and issued by Deputy Prime Minister Le Minh Khai on behalf of the Prime Minister , PVN will remain a 100% state-owned enterprise after restructuring.
By 2025, the group must divest all capital in fields and enterprises not in its core business and restructure to become the leading energy industry group in the region.
The main fields of the oil and gas giant include petrochemical development, deep processing of gas products and high-quality oil and gas services; clean energy sources, new energy such as offshore wind power, marine energy...
"PVN will restructure to become stronger, especially participating in the construction of renewable power plants, contributing to the development of the national renewable power industry. Revenue will grow by an average of 3-6.5% per year, increasing budget revenue by about 10% each year," the project stated.
In addition, PVN must develop a separate project to restructure the group's capital contribution at Vietnam Joint Stock Commercial Bank for Industry and Trade (PVComBank), including a plan and roadmap for divestment. Currently, PVN's capital ratio at this bank is 52% and the Government requires it to be reduced to 15% by 2025.
PVcomBank was established in 2013 on the basis of the merger between Vietnam Oil and Gas Finance Corporation (PVFC) and Western Commercial Joint Stock Bank (WesternBank).
This bank currently has a charter capital of VND9,000 billion, total assets of VND200,000 billion, with a network of hundreds of transaction offices nationwide. The two major shareholders are the Vietnam National Oil and Gas Group (52% ownership) and Morgan Stanley International Holdings Inc (7%), the remaining 41.3% is held by other organizations and individuals.
Also according to the project, by the end of 2025, most member enterprises of this group will be joint stock companies, with a streamlined model, healthy finances, efficient operations, and modern technology and production techniques equivalent to those of countries in the region.
The Group also develops a number of large-scale member enterprises that are competitive regionally and internationally in key business areas such as oil and gas exploration and exploitation, petrochemical refining, etc. At the same time, it merges, consolidates, and conducts M&A of a number of units to concentrate resources and enhance competitiveness during restructuring.
Regarding finance, PVN must develop a plan to restructure finance, capital, and assets towards increasing cash flow management and cash capital to ensure safety and effective capital use.
The Government noted that the group needs to regularly update the cash flow balance and medium- and long-term capital sources to come up with timely response measures, including the amount of money PVN incurred under the guarantee obligation corresponding to the group's capital contribution at Nghi Son Oil Refinery.
PVN must strictly manage receivables, come up with solutions to collect due debts and handle debts, including debts for providing services to Nghi Son Refinery.
According to the 9-month business results report, PVN recorded revenue of VND 643,200 billion, exceeding the 9-month plan by 26%, equal to 95% of the yearly plan. Budget contribution is estimated at VND 102,400 billion, exceeding the 2023 plan by 31%. Consolidated pre-tax profit reached VND 42,500 billion, exceeding the yearly plan by 22%.
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