Vietnam National Petroleum Group (Petrolimex) said its plan to list its shares on the local stock exchange by the end of this year is proceeding as planned. Vietnam’s Ministry of Industry and Trade earlier decided that it would decrease the state’s stake in Petrolimex to between 65% and 75%.
In April, Petrolimex reached an agreement to sell an 8% stake in the company to Japan’s JX Nippon Oil and Energy Corporation.
Petrolimex is one of the first state businesses that will undergo restructuring with “market-oriented objectives,” that include reducing costs, improving efficiency and obtaining higher yields from corporate assets. Petrolimex will focus on its core business, according to Nguyen Quang Dung, head of investment strategy at Petrolimex, while expanding its market both at home and abroad.
After restructuring, Petrolimex will focus on five key areas: fuel, transportation and distribution of petroleum products, petrochemicals, gas and construction.
Petrolimex said it is near completing its restructuring plan for its oil retail network and will soon submit its plan to the Ministry of Industry and Trade for approval. Petrolimex, which currently has a 55% share of Vietnam’s petroleum retail market, has more than 2,350 service stations as of November 2015.
Petrolimex’s consolidated financial report for the third quarter showed a decline in revenue of 11% compared to the same period a year ago to VND29.27 trillion (USD1.27 billion). However, because of lower crude oil prices, the cost of goods sold also decreased by 13% to VND25.9 trillion (USD1.13 billion), resulting in the doubling of the company’s net profit to VND1.06 trillion (USD46.3 million).