PV GAS earns over 45 billion VND in bank interest every day.

In the first six months of the year, PV GAS 's financial income reached VND 908 billion, a 20% decrease compared to VND 1,134 billion in the same period last year. Of this amount, VND 831 billion came from interest on deposits. The remainder came from exchange rate differences, dividends, and other sources. Thus, on average, the company earned VND 4.6 billion in bank interest per day.

Financial revenue contributed significantly to the half-year business results. PV GAS recorded pre-tax and after-tax profits of VND 7,410 billion and VND 5,960 billion respectively, both down 10% compared to the same period last year.

According to the management's explanation, the average Brent crude oil price increased by 5% in the first six months of this year, while dry gas consumption decreased by 16% compared to the same period last year, which led to a decrease in after-tax profit.

This year, PV GAS aims for consolidated total revenue of VND 70,176 billion, a 22% decrease compared to the same period last year. Pre-tax and after-tax profits are projected at VND 7,249 billion and VND 5,798 billion respectively, both half the figures from the previous year. This plan is based on an oil price of USD 70 per barrel and an exchange rate of VND 23,500. Thus, after half a year, the company has achieved 76% of its revenue target, exceeding its pre-tax profit target by 2% and its after-tax profit target by nearly 3%.

At the 2024 Annual General Meeting of Shareholders, the management stated that domestic gas resources are entering a period of rapid decline. The supply of cheap gas has decreased significantly, replaced by a larger proportion of more expensive gas. PV GAS plans to add approximately 1.4 billion cubic meters per year to its 1 million-ton LNG storage facility project in Thi Vai. However, the mechanism for selling LNG for electricity production has not yet been approved. Furthermore, the domestic LPG market faces fierce competition for supply, driving down prices and impacting business performance.

Recently, PV GAS announced a resolution of its Board of Directors approving the plan to pay cash dividends for 2023. Accordingly, PV GAS will pay a dividend for 2023 at a rate of 60% (equivalent to shareholders owning one share receiving 6,000 VND) between October 14th and November 29th.

With approximately 2.3 billion shares outstanding, PV GAS is estimated to need to spend over 13,780 billion VND to pay dividends to shareholders. The majority of this amount will go to the Vietnam Oil and Gas Group ( PetroVietnam ), the parent company that holds 95.76% of GAS's capital.

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

In addition to its plan to distribute a substantial dividend, GAS also approved a plan to issue shares to increase its equity capital from retained earnings in 2024. Specifically, GAS plans to issue over 45.9 million shares, equivalent to 2% of the outstanding shares. The exercise ratio is 50:1.

The capital for the issuance will be sourced from the Development Investment Fund at the time. The company expects to issue the shares in the third or fourth quarter after receiving notification from the State Securities Commission.

As of the end of the second quarter, PV GAS 's equity reached VND 70,921 billion, an increase of over VND 5,622 billion compared to the beginning of the year. Undistributed after-tax profit exceeded VND 18,866 billion.

On the stock exchange, GAS shares are currently trading at 77,900 VND, a slight increase from the beginning of the year's price of 75,600 VND. The average trading volume over the past 10 sessions has exceeded 1 million units. The company's market capitalization is currently close to 179,000 billion VND.