PV Gas dominates Cambodian market

Last year, PV Gas exceeded most of its targets and posted the highest results in 2014 after its equitisation. - Photo fica.vn

Statistics from PV Gas showed that Cambodia mostly depends on imported liquefied petroleum gas (LPG), including the imports from Viet Nam.

In the 2010-13 period, Cambodia imported 6,000 to 8,000 metric tonnes of LPG per month. The amount rose to 10,000 to 12,000 metric tonnes per month in the first months of this year.

PV Gas said that limited LPG supply and increasing demand have made Cambodia a potential market for Vietnamese LPG exporters.

Viet Nam started exporting a modest 400 tonnes of LPG per month to Cambodia in 2010. After five years of exporting to the market, the company now ships 4,000 to 5,000 metric tonnes of LPG per month.

Last year, PV Gas exceeded most of its targets and posted the highest results in 2014 after its equitisation.

It posted a turnover of VND40.5 trillion ($1.89 billion), representing a 25 per cent year-on-year rise and 25 per cent higher than the set target.

PV Gas supplied 1.04 million metric tonnes [P1] of LPG to the market in 2014, of which 300,700 metric tonnes were from Dinh Co; 75,100 metric tonnes from Dung Quat; and 688,500 metric tonnes from imports.

However, the effectiveness of LPG trading has been affected due to falling prices in the world market, while the crude oil price reached its lowest level in the past four years.

Three out of six subsidiaries reported an after-tax profit of 35 per cent on charter capital ratio.

This year, PV Gas has targeted a turnover of VND69.5 trillion ($3.24 billion) and after-tax profit of VND11.5 trillion ($537 million).

Le Nhu Linh, the corporation's chairman of the management board, said the targets were set by the Viet Nam Oil and Gas Group (PVN), which holds 97 per cent of its shares.

However, the targets will be adjusted as the world crude oil prices are lower than $100 a barrel.

Linh said that PVN plans to reduce its capital at PV Gas. The corporation has met some large foreign groups in its search for strategic shareholders.

Some partners have met its criteria of having experience in gas technology management and gas resources in foreign countries.