With consolidated net profit of VND 58 billions achieving in third quarter of 2014, which is increased by VND 5 billions, equivalent 15% compared to the same period of 2013, the company already achieves 97% target of this year. PetroVietnam General Services Joint Stock Corporation (PETROSETCO) continues to secure its stable growth in all business divisions (Distribution, Supply chain services, Catering service and Property services).
In 2014, although the economy of Vietnam still has many obstacles, PETROSETCO (PET) carefully prepare to cope with all challenges and takes advantages by strategic steps to overcome and gain all planned targets.
Revenue of 3Q14 is VND 2,894 billions, which drops slightly about 2% compared to the same period of last year. However, thanks to the decrease in Cost of Goods Sold by 3%, gross profit increases by 14% and reaches VND 207 billions.
Financial income totaled VND 17 billions decreases by 35% compared to the same period. In contrast, financial expenses increase 23% to VND 35 billions. Other profit is VND 8 billions while it was only VND 1 billion last year. Excluding all relevant expenses, net profit of the Company earns more than VND 46 billions, which is increased by 44%. In first three quarters of 2014, PET also reduced inventories and cut off general and administrative expenses significantly.
Catering services
9 month pre-tax profit of PET is VND 230 billions, increasing by 2% compared to the same period of last year and achieves 92% of the annual plan; Net profit after tax is VND 175 billions, achieves 97% of the annual plan. Total net profit of equity holders is VND 143 billions.
At the end of third quarter in 2014, total assets of PET is VND 5,322 billions decreasing by 15% compared to of the beginning of the year. Cash and cash equivalents are VND 1.549 billions, decreasing by 27%. Inventories are VND 1,293 billions, decreasing by 31%. Account payables are VND 3.832 billions, which is decreased by 20% and accounted for 72% of total resources. The majority of total resources are Short-term loans and debts at VND 2,095 billions; and trade account payables at VND 1,249 billions. The company has no long-term loans and debts.
Trading and distribution of telecommunication technology products is accounted for 60% of the total sales. In the difficult economic and competitive situation, thanks to supporting and strong cooperation of both domestic and foreign manufacturers, this business division keeps improving in all aspects such as management, networks and distribution systems as well as the portfolio of products.
Distribution services
PET has being firmly grown in bidding activities of providing supplies and equipment for oil and gas industry clients such as VSP, PVC-MS, Cuu Long JOC; especially being the winner for providing power distribution stations for two power projects in Thai Binh; successfully being the exclusive distributor for DHP (specializing in providing drilling equipments). In the first half of 2014, the success percentage of PET in bidding projects is higher than of in 2013. PET also focuses on developing markets of providing equipments for clients not in oil and gas industry.
Polypropylene plastic particle and LPG are stably being distributed to the market. Total 14.5 tons of polypropylene sales are valued at VND 500 billions and being equivalent 90% of the same period last year; therefore, profit have decreased slightly compared to 2013. In the first few months of 2014, LPG’s price kept falling sharply that affected dramatically on most of Dung Quat LPG’s buyers due to high inventories and price drop. From May2014 onwards, LPG’s price gradually recovered but Dung Quat refinery was at maintenance schedule that caused lack of supply to the market. In the first 6 months, PET has distributed 13 thousand tons of LPG from the Dung Quat Oil Refinery.
Regards to the oil and gas services sector, PET continues to provide catering service for most of members in the oil industry such as PVD, VSP, PTSC, ... Besides, PET expands to provide the service to Deep Driller V, Ocean Quest, Java Star 2, ...PET successfully maintains high quality services to traditional customers in the industry and signs more contracts of providing services with contractors such as JDC drilling, Seadrill, ENI, Origin Energy; implementation of transportation service contracts OOG signed in 2013; successfully loading out of Diamond topside.
Logistics services such as shifts, customs clearance, import and export authorizations have been operated stably during the first 6 months of 2014. In addition, PET keeps doing marketing and market research to expand the building management services for clients in other industries; continuing to operate and manage in safety and efficiency all current buildings of PVN group such as PVCom Bank, the Vietnam Petroleum Institute and the Corporation PVGas.
Cooporation between Smartcom and Philips
Regards to financial aspect, management of using sufficient capital resources in order to maximize the financial strength and controlling costs are the priority for the steady-state growth of PET.
Forecasting for the last quarter of 2014, since domestics market still being tough due to low demanding, PET will deliberately and consistently manage all business divisions, actively react to every single movement of the market fluctuations, maintain and strengthen the existing businesses, continue to develop new business, and estimate to reach beyond the target of 2014.