According to Petrolimex, the year 2023 has witnessed a situation of rapid increase and decrease in gasoline and oil prices, with unpredictable developments. Many parties face difficulties in accessing credit capital, leading to some enterprises having to file for liquidation and closure. Along with that, the competition is increasingly fierce, especially through intermediary sales channels, while the situation of brand infringement, goods of unknown origin, and poor quality leads to unhealthy competition, creating challenges for Petrolimex.
In 2024, Petrolimex predicts that the world economy will remain unstable, with risks such as global economic growth being held back by the residual effects of the pandemic; strategic competition among major countries becoming increasingly激烈; armed conflict, geopolitical tensions (Russia – Ukraine, Red Sea); high inflation, tightening monetary policy, prolonged interest rate hikes… leading to the risk of a global recession, and a decline in consumer demand in many countries.
With unfavorable factors, the Petrolimex Board of Directors is also more reserved, setting targets for decline in many indicators. Specifically, the Group submitted a plan to the congress with a revenue target of VND 188 trillion, a decrease of 32% compared to the previous year; the pre-tax profit target is VND 2.9 trillion, a decrease of 26%; the output of gasoline and oil for sale is just over 13 million m3/tons, a decrease of 9%.
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Petrolimex’s 2024 Plan
Source: PLX
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Regarding the profit distribution plan, Petrolimex proposed a plan to pay a dividend of 15% in cash for 2023, equivalent to more than VND 1.9 trillion. In 2024, with the target of decline, the proposed dividend rate is 10%.
100% revenue from green fuel by 2045?
Petrolimex’s documents also mention the development plan of the entire Group for the period 2021-2030, with the overarching goal of becoming the leading energy group in Vietnam in terms of green energy products, as well as carrying out a comprehensive digital transformation on the platform of technology 4.0.
With the nature of an oil and gas enterprise, Petrolimex said that it still needs to develop this area, taking gasoline and oil as the main axis in business activities. However, in order to develop the energy sector, Petrolimex is aiming for a target of 50% from clean energy and fuel products by 2030, and a ratio of 100% clean energy by 2045.
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Results of the years and 2024 plan of PLX
Source: VietstockFinance
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Regarding specific plans, Petrolimex said that the immediate goal is to complete the production and business indicators and investment development according to each year and the entire period approved by the Committee and the General Meeting of Shareholders. At the same time, effectively implement the Petrolimex restructuring plan 2021 – 2025, with a roadmap for divesting investments outside the main business line, handling inefficient enterprises, and preserving and developing Petrolimex’s capital invested in subsidiaries and associated units.
With the story of green transition, the Enterprise will deploy green, clean projects at the system of warehouses, ports, and gas stations such as: Trading clean fuels that are friendly to the environment; Installing vapor recovery systems; Deploying rooftop solar power systems… In addition, it will develop a plan to measure CO2 emissions throughout the system according to the decision of the Prime Minister, and implement projects to reduce or eliminate emissions. Besides, researching participation in pilot projects for production, storage, transportation, distribution, import and export of hydrogen, production of specialized equipment for storage and distribution of Hydrogen; research and development of laboratories for new products such as hydrogen, biofuels, synthetic fuels…
Regarding digital transformation solutions, Petrolimex aims to comprehensively transform all gas station systems, applying modern technologies to reduce CO2 emissions and ensure safety and fire prevention. Warehouses and tanks are also being digitally transformed in a safe, green, clean, and intelligent direction. In parallel, collecting information and data through thorough digitization of business processes, management, and administration, and deploying and putting into operation the use of large data warehouses/Data Warehouse, Datalake… to meet the requirements of collecting and processing big data (Big Data).
Series of board members resigns
The Petrolimex HQT will also submit to the congress a resolution to dismiss 3 members of the Board of Directors and 2 members of the Board of Supervisors. Including:
Mr. Le Van Huong – Member of the Board of Directors, retired from June 1, 2024.
Vo Van Quyen – Independent Member of the Board of Directors, has submitted a resignation letter due to health reasons.
Mr. Ken Kimura – Member of the Board of Directors, has submitted a letter of resignation at the request of ENEOS Vietnam Co., Ltd., as Mr. Kimura is no longer a representative of ENEOS. It is known that ENEOS Vietnam Group is a major shareholder in Petrolimex.
Mr. Nguyen Vinh Thanh – Member of the Board of Supervisors, retired.
Mr. Norimasa Kuroda – Member of the Board of Supervisors, resigned at the request of ENEOS Vietnam because he is no longer a representative of ENEOS.
At the same time, conduct additional elections to replace dismissed members.
The decisions will take effect after being approved by the General Meeting of Shareholders. Petrolimex’s 2024 Annual General Meeting of Shareholders will take place on April 26, in the form of online.
