The financial report for the second quarter of 2024 of PetroVietnam Gas Joint Stock Corporation (PV GAS, stock code: GAS) shows that as of the end of June, the total assets of this enterprise reached about VND 95,167 billion, an increase of 8.4% (equivalent to VND 7,413 billion) compared to the beginning of the year. Of this, PV GAS holds more than VND 43,900 billion in cash and short-term deposits, an increase of more than VND 3,000 billion compared to the beginning of the year.

The large amount of deposits brings in abundant financial revenue for PV GAS . In the second quarter, PV GAS recorded financial revenue of nearly VND445 billion, mainly from interest on deposits. This figure is 25.7% lower than the VND598 billion in the same period last year, mainly due to lower interest rates.

In the first 6 months of the year, PV GAS 's financial revenue reached VND908 billion, down 20% compared to VND1,134 billion in the same period. Of this, VND831 billion was interest from deposits. The rest came from exchange rate differences, dividends and other sources. Thus, on average, the company earned VND4.6 billion in bank interest each day.

Financial revenue contributed significantly to the half-year business results. PV GAS recorded pre-tax and after-tax profits of VND7,410 billion and VND5,960 billion, respectively, down 10% year-on-year.

According to the board of directors' explanation, the average Brent oil price in the first 6 months of this year increased by 5% while dry gas consumption decreased by 16% compared to the same period, which was the reason for the decrease in after-tax profit.

This year, PV GAS set a target of VND70,176 billion in consolidated revenue, down 22% year-on-year. Pre-tax and post-tax profits reached VND7,249 billion and VND5,798 billion, respectively, both down by half compared to the previous year. This plan was built on the basis of an oil price of USD70 per barrel and a USD exchange rate of VND23,500. Thus, after half a year, the company has achieved 76% of its revenue target, exceeding the pre-tax profit plan by 2% and the after-tax profit target by nearly 3%.

Also at the 2024 shareholders' meeting, the board of directors said that domestic gas resources are entering a period of rapid decline. Cheap gas sources have decreased sharply, replaced by high-priced gas sources accounting for a large proportion. PV GAS plans to add about 1.4 billion m3/year of gas sources in the 1 million ton LNG warehouse project at Thi Vai. However, the mechanism for selling LNG for electricity production has not yet been approved. In addition, the domestic LPG trading market has fierce competition in supply, pushing the product down to low market prices, affecting business efficiency.

Recently, PV GAS announced the Board of Directors' resolution on approving the cash dividend payment plan for 2023. Accordingly, PV GAS will pay 2023 dividend at a rate of 60% (equivalent to shareholders owning 1 share receiving 6,000 VND) in the period from October 14 to November 29.

With nearly 2.3 billion shares in circulation, it is estimated that PV GAS needs to spend more than VND13,780 billion to pay dividends to shareholders. Most of this money will belong to the Vietnam Oil and Gas Group ( PetroVietnam ), the parent company holding 95.76% of GAS's capital.

This is the highest dividend rate ever of PV GAS, and is three times higher than the rate approved by the company at last year's annual general meeting of shareholders.

In addition to the plan to pay huge dividends, GAS also approved the implementation of a plan to issue shares to increase equity capital from owners' equity in 2024. Specifically, GAS plans to issue more than 45.9 million shares, equivalent to 2% of outstanding shares. The exercise ratio is 50:1.

The capital for issuance is drawn from the Development Investment Fund at the time. The Company plans to issue in the third or fourth quarter after receiving notice from the State Securities Commission.

By the end of the second quarter, PV GAS 's equity reached VND70,921 billion, an increase of more than VND5,622 billion compared to the beginning of the year. Undistributed profit after tax was more than VND18,866 billion.

On the stock exchange, GAS shares are currently at 77,900 VND, slightly up from the beginning of the year price of 75,600 VND. The average trading volume for the last 10 sessions is more than 1 million units. The company's market capitalization is currently nearly 179,000 billion VND.