PetroVietnam accelerates divestment from PVI
PetroVietnam accelerates divestment from PVI
To facilitate the goal of divesting from PVI before the end of 2025, Vietnam National Oil and Gas Group (PetroVietnam) has hired a consulting firm to implement the plan.
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Nguyen Tuan Tu, CEO of PVI Holdings, revealed this information at an investor meeting on December 12.
Tu said, "The divestment process goes through many procedures. However, the Commission for the Management of State Capital at Enterprises (CMSC), which approved the divestment plan, is under restructuring and merger according to the government’s push to streamline its administrative apparatus. Therefore, the divestment process may be prolonged."
PetroVietnam currently owns a 35 per cent stake in PVI. The group will divest its entire stake holdings in PVI rather than divide into many individual lots.
PVI is operating efficiently among the leading group in PVN's portfolio. Organisations have reaped great benefits from investing in the company. For example, the International Finance Corporation (IFC), a major shareholder, has divested from PVI.
Truong Thanh Danh, deputy chairman of PVI, said, “IFC divests from PVI after three years of holding stakes and supports the company’s successful transition. From a state-owned enterprise, PVI has transformed itself into a firm with a private mindset, taking efficiency and corporate governance as the leading criteria. IFC has fulfilled its goals at PVI and divested from the company to invest and support other businesses in line with their principles and purposes.”
“Indeed, investments at PVI have brought good profits to IFC. It would take two years to complete the divestment, but thanks to the interest of many investors, IFC has successfully divested from PVI in a very short period of time,” Danh said.
In July, German insurer HDI Global SE, a major shareholder in PVI, purchased additional shares to increase its ownership ratio. Currently, HDI Global and Funderburk Lighthouse Ltd, a related organisation, own approximately 55 per cent of shares in PVI.
In the first nine months of 2024, PVI achieved a total consolidated revenue of VND16.7 trillion ($657.35 million), completing 96 per cent of the year’s plan. Consolidated pre-tax profit reached VND979 billion ($38.5 million), equivalent to 91 per cent of the year’s plan. PVI continues to affirm its leading position in the market in terms of market share (18.2 per cent), with a charter capital of VND3.9 trillion ($153.5 million) and business efficiency (the consolidated combined ratio of less than 94 per cent). The company also maintains a policy of cash dividend payout at a high rate (32 per cent in 2023).
“The company expects to achieve more than VND20 trillion ($787.2 million) in consolidated revenue and VND1 trillion ($39.4 million) in pre-tax profits in 2024. In 2025, PVI aims for double-digit growth,” Danh said.
Over the past year, PVI has affirmed its risk management capacity and resilience in response to Typhoon Yagi’s damages. With 1,200 compensation claims estimated at VND3.5 trillion ($137.8 million), PVI has promptly made provisional payments to many customers. The timely compensation process protects customers' rights and strengthens the trust in PVI as a reliable partner in a tough period. In 2024, PVI aims to make a cash dividend payment at a minimum ratio of 28.5 per cent. This is an important foundation for PVI to expand cooperation with major partners, promoting sustainable growth both domestically and internationally.
