PV Gas value plunges as oil slumps
PV Gas value plunges as oil slumps
A sharp decline in global oil prices over the past year has helped wipe out almost US$7 billion worth of PV Gas's (GAS) market capitalization, as investors eye the company's falling revenue.
Shares of GAS have fallen more than 60 per cent since last August and more than 17 percent since July 23. The stock closed yesterday at VND49,300 ($2.26), the lowest in the company's trading history, from a peak of VND126,000 ($5.78) on August 28, 2014.
The company's market cap yesterday fell to VND93.4 trillion ($4.3 billion).
West Texas Intermediate traded below $42 a barrel early yesterday on the New York Mercantile Exchange, down 60 per cent from its peak of over $106 a barrel on August 1, 2014.
GAS is also no longer the largest company traded on the HCM Exchange, relinquishing the top spot to Vietcombank (VCB) on June 1.
Last week, the company said revenue slid to VND31.3 trillion ($1.4 billion) in the first half of this year, down 10 per cent year-on-year. Its net profit also dropped 18 per cent during the same period to VND5.34 trillion ($245 million).
Earlier this year, PV Gas said it expected revenue of VND69.54 trillion ($3.2 billion) and a profit of VND11.53 trillion (nearly $529 milllion) for the whole year, based on the assumption that oil prices would average about $100 a barrel in 2015.
GAS is the sole gas distributor in Viet Nam. It buys gas directly from owners and sells to power plants (consuming 83 per cent of dry gas) and fertiliser and industrial companies.
