The Vietnam National Petroleum Group (Petrolimex) on Tuesday said it will sell 20 per cent stake to its Japanese strategic partner, in order to reduce the state holding to 75 per cent.
Dinh Viet Tien, the group’s head of supervisory board, revealed that Japan’s JX Nippon Oil and Energy Corporation had been cooperating with the group since signing a memorandum of understanding in December, 2014. Meanwhile, the state ownership in Petrolimex is currently 95 per cent.
“The Japanese investor operates in the same industry and has a strong financial capability. If the government approves, the strategic partnership can be formed within this year,” said Petrolimex chairman Bui Ngoc Bao.
Also in the remaining time of the year, Petrolimex will boost investment in large projects, such as the Nam Van Phong refinery.
JX Nippon Oil and Energy will work with the Vietnamese petrol giant and will jointly construct the project, which was scheduled to be completed in 2013. However, the project failed to meet its deadline and the cost projections have shot up to $8 billion (from $4.8 billion). The southern Khanh Hoa-based plant is re-slated for a 2020 completion. It will be capable of handling about 200,000 barrels daily.
On May 22, PGBank and Vietinbank inked a contract on the two’s merger and partnership between Petrolimex and Vietinbank. PG Insurance is listed on the stock exchange, while Petrolimex Land is currently traded on the over the counter (OTC) market.
Petrolimex auctioned its initial public offer (IPO) in 2011, and has since then restructured the entire group, aiming to stabilise its operations as a joint stock company and to list shares on the secondary market.
Although the group’s consolidated revenue reached VND206.8 trillion ($9.6 billion) last year, it recorded a loss of VND9 billion, due to the slumps in global oil prices.
For the 2015 fiscal, Petrolimex targets to achieve VND2.45 trillion in profit before tax, in which the parent company is expected to account for VND448 billion.