Gas South Finishes 2023 Strong
Gas South reported a 17.3% increase in pre-tax profit in 2023. This was largely due to a gross margin that grew by almost 3% compared to the previous year. Though Gas South’s revenue fell short of its target, reaching only 90.14%, its pre-tax profit exceeded the target set by the General Meeting of Shareholders by 42.24%.
Gas South’s performance outpaced that of similar businesses in the southern region. In 2023, An Pha Petroleum Joint Stock Corporation (stock code: ASP) reported a loss of more than 80 billion dong. The Vietnam LPG Joint Stock Company (stock code: PVG) had a revenue of 4,441.9 billion dong (112.11% of the target), but its profit was only 1.32 billion dong (5.84% of the target).
In its report at the General Meeting of Shareholders, Gas South’s leadership attributed the challenges faced by the gas industry and the company to the economic slowdown. A significant factor was the suspension or reduction of production in businesses, especially in industries with high fuel consumption, such as steel, ceramics, construction materials, and textiles. Consequently, gas consumption declined to 40-60% of previous levels.
Gas South consistently strengthens its brand reputation in the market. (Source: Gas South)
For 2024, Gas South set a revenue target of 6,456.57 billion dong and a pre-tax profit of 132.7 billion dong. In the first quarter of 2024, Gas South achieved a pre-tax profit of 35.7 billion dong (26.9% of the annual target). This is a relatively positive result compared to peers. By the end of March, several companies had released their 2024 Q1 financial reports. Vietnam CNG Joint Stock Company (stock code: CNG) reported a pre-tax profit of 1.9 billion dong (1.7% of the annual target). The Vietnam LPG Joint Stock Company (stock code: PVG) reported a pre-tax profit of 1.28 billion dong (8% of the annual target). Petrolimex Gas Joint Stock Corporation (stock code: PGC) reported a pre-tax profit of 36.4 billion dong (26.4% of the annual target).
To achieve its 2024 targets, Gas South has implemented several effective business solutions. These include focusing on expanding the retail LPG market and actively developing foreign markets for gas cylinder and cold gas cylinder exports. Additionally, Gas South has intensified its marketing, advertising, and customer acquisition efforts for CNG and LNG. The company has also focused on digital transformation and the application of information technology to enhance productivity and efficiency.
In terms of human resources, the General Meeting of Shareholders approved the dismissal of Ms. Nguyen Ngoc Anh from the Board of Directors and Ms. Dao Thanh Hang from the Supervisory Board due to the expiration of their terms. New Board of Directors member Ms. Nguyen Ngoc Anh and new Supervisory Board member Mr. Tran Van Chung were introduced, with their terms extending from 2024 to 2029. Mr. Tran Van Chung was also elected as the Chairman of Gas South’s Supervisory Board for this term.
The Presidium and representatives of the Vietnam National Gas Corporation (PV Gas) presented flowers to Ms. Dao Thanh Hang, Supervisory Board member from 2019 to 2024, and congratulated Mr. Tran Van Chung on his appointment as Supervisory Board member of Gas South from 2024 to 2029. (Source: Gas South)
Dividend Payment of 20%
Due to its pre-tax profit exceeding the target by 42.24%, Gas South distributed a dividend of 20% of its charter capital to its shareholders. On April 5, 2024, the company paid an interim dividend of 15% in cash, with the remaining 5% to be distributed at a time determined by the Board of Directors based on the company’s business performance.
Employees’ salaries, social insurance, health insurance, benefits, and bonuses were maintained and improved in 2023, creating a positive atmosphere in the company.
The meeting was also attended by Mr. Nguyen Phuc Tue, representative of the Vietnam National Gas Corporation (PV Gas) and Gas South’s largest shareholder. In his speech at the General Meeting, Mr. Nguyen Phuc Tue expressed PV Gas’s positive evaluation of Gas South’s operating performance in 2023.
Mr. Tue commended the effectiveness of Gas South and expressed PV Gas’s confidence in its investment in Gas South. He praised the professionalism of Gas South’s staff and the cooperation between Gas South and PV Gas subsidiaries. He emphasized that PV Gas would continue to support and provide favorable conditions regarding supply, pricing, and increased production for Gas South. PV Gas will work closely with Gas South through practical actions to open a new chapter in the business relationship between the two companies. PV Gas will continue to collaborate with Gas South to achieve its business goals and maximize shareholder value.
