PVChem successfully held the Annual General Meeting of Shareholders

Exceeding the financial targets by 28 - 134% in 2020

At the meeting, PVChem representative reported that PVChem completed the plan of 2020 with a total revenue of VND 2,202.4 billion (28% higher than planned), profit before tax reaching VND 32.53 billion (134% higher than planned), contributing to the State budget VND 117.72 billion (68% higher than planned), expected dividend payout ratio of 4.5% vs. the planned 4%; ROA and ROE increased sharply compared to 2019; liabilities, inventories are under control. Especially, PVChem stock (stock code PVC) has continuously escalated since the beginning of 2021.

Technical services accounted for VND 804 billion in PVChem's total revenue. PVChem supplied drilling fluid services for 18 wells (drilling and workover) of 5 oil and gas contractors; provided upstream and downstream technical services that were highly regarded by clients.

The business of sulfur and chemicals for oil and gas activities (drilling, production, refining and petrochemicals, gas processing, power, and fertilizer) was stably maintained, delivering the revenue of VND 1,310 billion. The manufacturing of products such as G cement, silica flour, API bentonite, etc. were also intensified.
In an aim to expand production and business, PVChem also promoted its research line such as partnership with Thailand Industrial Gas Company (BIG) to study an investment in industrial gas production. Other investment opportunity surveys were conducted by PVChem with partners, such as with PVFCCo on investment opportunity of a hydrogen peroxide factory, with BSR on project “Manufacturing PP Filler Masterbatch/Compound factory from PP powder of Dung Quat Oil Refinery”, and with Shingkong (Taiwan) on manufacturing PET chips from recycled scrap PET plastic bottles for Dinh Vu polyester fiber factory to strengthen the input material chain and meet the sustainable development.

In 2020, PVChem fully complied the regulations for listed companies, clearly providing information related to its production and business activities, and transparently communicating to shareholders and investors. 

Planning to increase charter capital to VND 1,000 billion in 2021

The 2021 is the first year PVChem implements the 5-year plan, 2021 – 2025, of the “PVChem Development Strategy to 2035, towards 2045” in a context that the oil and gas industry continues to cope up with many challenges due to the influence of the Covid-19 pandemic, oil prices improved but remained low. Besides, the price increase of input chemicals and raw materials (due to the disruption of the global supply chain during the Covid-19 pandemic), and severe competitive pressure from foreign competitors and independent companies are all affecting PVChem's production, business, and service activities.

In 2021, PetroVietnam Chemicals and Services JSC (PVChem) sets its plan of 12,000 tons production output, VND 2,000 billion total revenue, VND 22 billion profit before tax, VND 14.5 billion profit after tax, VND 75 billion contribution to the State budget. PVChem will also aim to increase its charter capital from VND 500 billion to VND 1,000 billion.
 

To achieve the above goals, various drastic and synchronous solutions have been applied to adequately prepare resources for the 5-year plan 2021 - 2025 and thoroughly plan for production and business expansion. PVChem continues to advance drilling fluid services - its core services during the past 30 years; expand chemical business with an focus on refining, production, and drilling chemicals; intensify distribution/trading of petrochemical products domestically and internationally; develop anti-corrosion services for oil and gas constructions; provide operation and maintenance services for various industrial works; develop O&M and treatment of civil wastewater; strengthen the R&D of new products with high economic efficiency.

Previously, on June 8, 2021, PVChem and its traditional partner, Schlumberger, signed an extension of the M-I Vietnam Joint Venture Contract for another 10 years and expanded investment cooperation into well services and production services beside drilling fluid services that have been successfully cooperated for the past years.

In addition, the implementation of restructuring, renovating governance, improving labor productivity, focusing on training/developing high-quality human resources, perfecting regulations/procedures/processes for IT, 4.0 technology applications have been and are being pushed in 2021.
 

PVChem 2021 Annual General Meeting of Shareholders approved important contents with a high consensus rate: Final Report of 2020 and 2021 PVChem's Business Plan; Summary report on activities in 2020 and operation plan in 2021 of PVChem Board of Directors; Report on PVChem governance in 2020; Profit distribution proposal for 2020 and plan for 2021; Proposals for amending PVChem's Charter, PVChem's Governance Regulations, Operational Regulations of PVChem's Board of Directors, and other important documents. At the meeting, the Presidium answered questions from shareholders about the plan to increase charter capital, profit distribution plan, implementation progress of PVChem investment projects as well as shared information about PVChem’s development orientation. The PVChem Annual General Meeting of Shareholders in 2021 unanimously approved the dismissal of Mr. Hoang Trong Dung from the position of Member of the Board of Directors (as assigned by PVN to PetroVietnam Fertilizer and Chemical Corporation - PVFCCo), elected Mr. Phan Cong Thanh - General Director, Representative of 10% of PVN's capital at PVChem - as a member of the Board of Directors in place of Mr. Hoang Trong Dung. The PVChem Annual General Meeting of Shareholders in 2021 was successfully held with high consensus of shareholders. This will be the premise and motivation for PVChem to well complete its production and business plan in 2021 and long-term schemes and strategies in the future.