Foreign ownership at PVFCCo likely to be raised
Foreign ownership at PVFCCo likely to be raised
Foreign investors may increase their ownership rate at PetroVietnam Fertiliser and Chemicals Corporation (PVFCCo) to more than their previous ceiling rate of 49 per cent.
The increase in foreign ownership ceiling rate was approved during PVFCCo’s annual general shareholders’ meeting (GSM) in the southern province of Ba Ria-Vung Tau on April 26.
According to the resolution passed at the meeting, foreign investors can buy more shares of PVFCCo, coded DPM, when the proportion of shares owned by the Vietnam National Oil and Gas Group (PetroVietnam), State representative at the corporation, is reduced to less than 51 per cent.
Currently, PetroVietnam owns 59.58 per cent of PVFCCo’s shares and foreigners hold nearly 40 per cent.
However, in PVFCCo’s restructuring plan for the 2016-20 period, PetroVietnam plans to divest capital at its subsidiary to reduce its holding to below 51 per cent.
To facilitate the search for strategic investors, shareholders of PVFCCo have agreed to an unlimited share of foreign investors.
To implement this resolution, PVFCCo will have to cancel the registration of three industries in its business licence that are subject to restrictions on foreign ownership, including loading and unloading goods, road freight and inland waterways transport. The corporation will also not involve in electricity tranmission and distribution activities, but keep producing power.
Removal and adjustment of these business registrations will be in line with the development policy and restructuring plan for the 2016-20 period to focus on the core business of producing and trading fertilisers, a PVFCCo representative said.
According to Dinh Van Son, a member of PetroVietNam’s Board of Directors, the group is proceeding towards both equitisation and divestment of capital in its affiliates, and the next phase is to seek strategic shareholders for these enterprises to help them restructure successfully.
Therefore, PetroVietnam will cooperate closely with PVFCCo and shareholders to accelerate the divestment plan.
In terms of performance in 2017, PVFCCo General Director Doan Van Nhuom said the corporation’s revenue in 2017 was close to VND8.2 trillion (US$362.8 million), fulfilling 106 per cent of the plan, while its pre-tax profit reached VND853 billion, or 101 per cent of the plan.
Based on the above results, PVFCCo has proposed to pay a dividend of 20 per cent for 2017, including 10 per cent payment in advance and another 10 per cent to be paid after GSM’s approval.
In the first quarter of this year, the corporation earned a revenue of VND2.1 trillion and a pre-tax profit of VND219 billion, surpassing 13 per cent and 72 per cent of the quarterly plans, respectively.
For the entire year, PVFCCo targets a pre-tax profit of VND442 billion and a dividend payout at 10 per cent.
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