PetroVietnam summarises of restructuring work for 2012 - 2015, tasks and measures for 2016 – 2020 period

Attending the Conference were Chairman of the Board of Directors (BOD) and President Nguyen Quoc Khanh, members of BOD, Vice Presidents and heads of units, divisions under the Group.

PetrovietnamChairman of BOD and President Nguyen Quoc Khanh chaired the Conference.

On the basis of the restructuring project approved in the Prime Minister’s Decision No. 46/ QD-TTg and the business and production activities of the units, the Group has closely and drastically directed restructuring work such as raising awareness, giving approval, timely amendment of restructuring plans of 18 member units, organizing periodic meetings with each member unit, establishing steering committee for equitization, restructuring at all levels to timely address the problems.

In the past 3 years, the equitization has been actively deployed. PVCFC has been successfully equitized, with the earning amount of 1,580 billion dong and surplus of 290 billion dong. The equitization of 3 main units (PV Power, BSR, PV Oil) has been ongoing. The equitization of Dung Quat Shipbuilding Company (DQS) is expected right after the Prime Minister approves the plan for dealing with pending issues.

Despite unfavorable development of Vietnam's stock market, lack of big and strategic investors, business difficulties facing divestment units due to the impact of global economic crisis, Petrovietnamhas achieved certain results in divestment, i.e. total divestment amount of 1,165 billion billion dong (including 800 billion dong that Petrovietnam transfer the ownership at Oceanbank to State Bank), average price of divestment of about 16,200 dong/ share.

PetrovietnamVice President Le Minh Hong reported and evaluated the results of restructuring for 2012-2015 and orientation for 2016-2020.

Thanks to the drastic implementation of restructuring activities, the organizational model of the Group has increasingly perfected. The parent company – the Group has directly engaged in some key business areas such as receiving and putting petroleum blocks from the foreign partner into operation, participating directly in petroleum contracts after announcing the trade. The Group has gradually promoted its role as the leader who gives orientation, paves the way, supports and supervises the member units so that their operation is more efficient, professional and responsive to the market.

The conference took place in excitement with discussion and comments by members of BOD, heads of units around the lessons learned from recent restructuring period and contribution of many opinions for the direction and restructuring plan of 2016-2020 period to the enterprises under the Group.

The conference has reached agreement on some issues, for example restructuring activities must be in compliance with actual market evolution in order to achieve the highest efficiency. It is necessary to promote the control of divestment as soon as possible, be more drastic to the businesses that cannot afford to develop and strictly follow the processes of finance and debt.

Giving conclusion at the Conference, President Nguyen Quoc Khanh emphasized: "The ultimate goal of restructuring is to improve the competitiveness of the Group. There remain 2 issues of restructuring, i.e. restructuring units, restructuring projects and assets. They cover the entire operation of the Group in the coming period. Restructuring means providing the Group with “a healthy body” so that it is ready to enter a new period of difficulties and challenges. By doing so, we will be able to move ahead more strongly, further and more stably. We should persist in restructuring work, and further enhance the openness of financial transparency to organization of personnel, especially focus on forecasting, preventing risks, at the same time seize opportunities for investment, development of Petrovietnam".

Petrovietnam Chairman of BOD cum President & CEO Nguyen Quoc Khanh also gave general assessment of the restructuring work for 5 main business sectors of the Group. Particularly, he emphasized the importance of equitizing, restructuring PV Power.

Source: PetroVietnam