PVOIL to boost HoSE listing

PVOIL to boost HoSE listing

The firm plans to present a proposal to write down its investment in PVB to zero, eliminating the audit qualification that currently surrounds its financial reports.

A PVOIL petrol station. Photo courtesy of the company

PetroVietnam Oil Corporation (PVOIL) is taking steps to expedite its listing on the Hồ Chí Minh Stock Exchange (HoSE). 

The company recently announced its upcoming annual general meeting set for April 25, where it will propose a strategy to address ongoing financial challenges, particularly concerning its investment in PetroVietnam Biofuel JSC (PVB).

As of the end of 2024, PVOIL held a 39.76 per cent stake in PVB, valued at about VNĐ272 billion (US$10.7 million). 

PVB's biofuel plant project in Phú Thọ Province has come to a halt, pushing PVOIL to consider bankruptcy proceedings for PVB in collaboration with its stakeholders. 

The financial audits conducted by Deloitte Việt Nam revealed that they could not gather sufficient evidence regarding the carrying value of PVOIL's investment in PVB, resulting in a qualified opinion in the company’s consolidated financial statements.

PVOIL plans to present a proposal to write down its investment in PVB to zero during the upcoming shareholders' meeting.

This move aims to eliminate the audit qualification that currently affects its financial reports. PVOIL Chairman Cao Hoài Dương has emphasised that resolving this issue is crucial for the company's compliance with HoSE listing requirements.

Market analysts from Vietcap Securities viewed this proposal as a proactive step that aligns with PVOIL’s objective of transitioning from UPCoM to HoSE. 

If approved by shareholders, and if subsequent financial reports receive unqualified opinions from auditors, PVOIL could fulfil the necessary conditions for a successful listing in 2025.

On Tuesday, PVOIL's shares closed at VNĐ13,100, recording a modest increase of 0.83 per cent from the beginning of the year. 

The company also targets a revenue goal of VNĐ150 trillion for the year, highlighting its ambition to strengthen its market position amid these transitions. 

Bizhub