2024 Annual General Meeting of Shareholders PXL held on April 19th
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17% of profit target achieved in the first quarter
The PXL General Meeting approved business objectives with total revenue exceeding 22 billion VND, down 8% compared to 2023; post-tax profit of nearly 2 billion VND, 3.5 times higher than before.
Source: VietstockFinance
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Closing the first quarter of 2024, Long Son PIC recorded nearly 3 billion VND in net revenue, a decrease of 10% compared to the same period; net income of nearly 317 million VND, 2.4 times higher. Compared to the plan, PXL achieved 17% of the profit target after the first three months of the year.
The company shared that the revenue reduction in Q1/2024 was due to the termination of a lease contract for a commercial center space at the Long Son Building project (District 7, HCMC) and PXL has not yet found a replacement tenant to continue the lease contract. Besides, financial revenue in the period also decreased due to the impact of the reduction in bank deposit interest rates.
However, PXL practiced cost savings and reductions, so the rate of corporate management and sales expenses both decreased significantly compared to the same period, resulting in an increase in profits.
Long Son Oil and Gas Industrial Park still has a lot of work to do
The Long Son Oil and Gas Industrial Park project is built in Long Son commune, Vung Tau city, Ba Ria – Vung Tau province (BR-VT), with a total area of 850 hectares, including Refinery No. 3 (810 hectares) and an underground storage for gasoline (40 hectares); the adjusted total investment capital for phase 1 is 11,759 billion VND.
In Decision No. 893/QD-TTg dated July 26, 2023 of the Prime Minister on approving the National Energy Development Master Plan for the period 2021-2030, vision 2050 and the draft plan to implement the Energy Master Plan: giai period 2026-2030 is expected to expand/build a Petrochemical Refinery Complex and a national reserve for crude oil, gasoline products (1 – 3 projects) with a total capacity of about 15-20 million tons/year in the South Central/Southeast region (Phu Yen, BR-VT…).
Accordingly, the Long Son Oil and Gas Industrial Park project remains unchanged compared to the initial plan and only considers changing (if any) the characteristics, functions, and attracting investment sectors in Long Son Oil and Gas Industrial Park. This industrial park will be established in the project adjustment step and approval of the 1/2000 scale construction zoning plan.
Mr. Le Cong Trung – Member of the Board of Directors and General Director of PXL said that Long Son PIC has been and is currently working closely with the Departments and the People’s Committee of BR-VT province to carry out and complete the procedures in accordance with the regulations on planning, investment, construction, and adjustment of the Long Son Oil and Gas Industrial Park project in accordance with the current regulations of the state.
Currently, the BR-VT provincial planning for the period 2021-2030 with a vision to 2050 has been approved, which determines the Long Son Oil and Gas Industrial Park as a key project for the period 2024-2030. Due to being a specialized industrial park, which was established to serve the refinery, the investment implementation process of the industrial park project depends heavily on the implementation plan of the oil refinery of the Vietnam Oil and Gas Group (PVN) in terms of progress, land use scope, zoning plan, and business plan. In the upcoming time, as directed by the Prime Minister, the Ministry of Industry and Trade, the People’s Committee of Ba Ria – Vung Tau Province, PVN, and Long Son PIC will work together to establish a basis for project implementation.
In addition, PXL will continue to coordinate with the People’s Committee of Ba Ria – Vung Tau Province and related departments and sectors to complete the legal procedures for the project, in which Long Son PIC continues to be the investor; carry out the preparation work for the investment in Long Son Oil and Gas Industrial Park.
“Adjusting the project is under the decision-making authority of the Prime Minister, so the implementation process will take a long time, as it depends on the comments of many central ministries and sectors,” said Mr. Trung.
Seeking to divest entire ownership in the Long Son Building project
Regarding the Long Son Building project, Mr. Trung said PXL continued to sue Khang Thong Group JSC, requesting Khang Thong to complete the conversion of land use purpose for the project to carry out procedures for applying for Certificate of Ownership of apartments and commercial center floors, and fulfill the commitments as per the contract. At the same time, prioritize selling all of Long Son PIC‘s ownership in the project to recover investment capital immediately after meeting legal conditions or finding a partner to transfer all rights/ownership in the project.
As for the Swanbay project, Dong Nai (24 apartments), PXL will transfer the apartments owned in this project when the market is favorable.
According to Mr. Trung, regarding the recovery of contributed capital at enterprises/projects, PXL will seek partners with sufficient capacity and implement a divestment plan in the enterprises in which it is currently investing, such as: PVC-Binh Son, PVC-SG, PVC-Metal, PVC- Kinh Bac and Lam Kinh Hotel JSC.
For the Kinh Bac oil and gas hotel project, Tuong Binh Hiep commercial housing area, the debts related to Khang Gia Company, Nam Long Company, Sieu Thanh Company, PXL continued to coordinate with functional agencies (court, police investigation agency) in handling violations of related parties to recover money and assets illegally seized for Long Son PIC.
Besides, Long Son PIC is researching the investment in an industrial park/social housing/urban area in the form of contributing capital/establishing a project enterprise in the near future.
Continuing the private equity offering plan
At the 2021 Annual General Meeting of Shareholders, PXL approved a plan to issue and offer private equity shares to increase charter capital for the purpose of investing in the Long Son Oil and Gas Industrial Park project. However, this plan has not yet been implemented.
PXL said that this share offering has not been completed in recent years because some contents in the plan are no longer suitable, the Company has a demand for adjustment/change to ensure the effectiveness of the offering, current legal regulations, as well as to implement the Long Son Oil and Gas Industrial Park project. Therefore, PXL will not continue to implement this share offering plan.
Instead, this congress approved a new plan. Specifically, the Company will offer more than 93.4 million PXL shares to a strategic investor, GELEX Infrastructure JSC at a price of 10,000 VND/share, expected to raise more than 934 billion VND. The entire amount will be used for investment consulting, site clearance compensation and resettlement support, implementation of temporary works, and other related costs/other cost items at Long Son Oil and Gas Industrial Park.
The shares offered under the new plan to this strategic investor will be subject to a transfer restriction within 3 years. It is expected to be implemented in 2024-2025.
As of March 15, 2024, GELEX Infrastructure was a major shareholder at PXL when it owned more than
