On the morning of June 14, PetroVietnam General Services Corporation (PET, listed on HOSE) successfully held its second Annual General Meeting (AGM). The meeting approved several key plans for 2024, with expectations of growth in revenue and profit compared to the results achieved in 2023.
In his report on business operations, CEO Vu Tien Duong shared that 2023 was a challenging year for service and commercial enterprises. Companies faced a shortage of export orders, leading to reduced working hours, layoffs, and a decline in disposable income. The IT sector also struggled with price competition due to excess supply from previous years. However, PETROSETCO worked hard to maintain stable business operations, manage cash flow flexibly, and support customers through difficult times. While some financial targets were not met, the results are a testament to the relentless efforts of PETROSETCO's employees.
In 2023, PETROSETCO achieved revenue of VND 17,218 billion, equivalent to 96% of the annual plan and 98% of the same period in 2022. Pre-tax profit reached VND 182 billion, 61% of the plan and 86% compared to the same period in 2022. After-tax profit was VND 139 billion, 58% of the plan and 83% compared to the previous year. The company's charter capital in 2023 was VND 1,073.4 billion, fulfilling 100% of the plan and achieving 119% of the previous year's result.
The distribution services sector continued to dominate, accounting for 86% of PETROSETCO's revenue structure, similar to the previous year. Other service segments, such as life services and property management, showed growth compared to the same period and met their targets. However, rising input costs and profit margin cuts resulted in pre-tax profit not meeting the plan, at only 86% of the 2022 figure.
Despite the challenges of 2023, PETROSETCO demonstrated strong resilience, undergoing a significant transformation and shifting its development mindset towards sustainability while restructuring internal operations.
PETROSETCO's 2024 plan has been developed with caution, considering macroeconomic fluctuations and growth prospects for the economy in the latter months of the year. The company aims to achieve revenue of VND 18,540 billion and pre-tax profit of VND 260 billion, equivalent to 108% and 143% of 2023 results, respectively.
Regarding profit distribution, PETROSETCO did not pay dividends to shareholders in 2023. For 2024, the company plans to pay a maximum dividend of 10%.
The AGM also approved the dismissal of three independent members of the Board of Directors (BOD): Mr. Trinh Thanh Can, Mr. Nguyen Quy Thinh, and Mr. Nguyen Duc Minh. Additionally, three new BOD members for the 2024-2029 term were elected: Ms. Pham Thi Hong Diep, Mr. Ho Minh Viet, and Mr. Nguyen Nhu Long.
During the discussion, shareholders raised several questions regarding profit plans, risks from weak demand, the status of Apple distribution operations, the Thanh Da project, dividend distribution, and plans to expand into new product lines. PETROSETCO's leadership reaffirmed its commitment to expanding into sectors that meet market demand, ensuring product/service quality and capital resources. The company will also focus on protecting and maintaining cash flow by strengthening existing supply contracts with customers and enhancing forecasting and control solutions to improve management efficiency.