PV Trans exceeded the business plan in the first 6 months of 2019

Since the date of establishment, PVTrans has transferred from the difficult company of  Oil and Gas Group (PVN) into the effective one. In particular, in recent years, PVTrans has enhanced competitiveness when expanding its operations in the international market. Besides traditional customers and companies in the oil and gas industry, PVTrans also provides transportation services to many private and non- oil and gas industry companies. This affirms the competitive capacity and price in PVTrans's transportation services.

In the first 6 months of 2019, PVTrans has completed the main targets: revenue reached VND 4,170.3 billion, equivalent to 156% of the 6-month plan; Profit before tax reached VND 480.1 billion, equivalent to 196% of the 6-month plan; payable to the State budget reached VND 180.2 billion, equivalent to 164% of the 6-month plan. Due to the initiative in following the situations of the domestic and international transport market; controlling management and technical costs; reducing unnecessary items for upgrading or repairs, shortening dry docking of ships schedule ..., PVTrans saved maximum cost.

 Preliminary meeting of the first 6 months and direction of the last 6 months of 2019. Photo: Ha Thanh

Strong and stable profit growth of PVTrans in the first 6 months of 2019 is originated from new vessels. In 2019, PVTrans has operated three new LPG carriers, one new product oil tanker in quarter 1 of 2019 and one crude oil tanker from quarter 2 of 2019. 

PVTrans's restructuring as well as strong and drastic management and administration are  considered as remarkable point and also the foundation for the sustainable development of PVTrans. 

Currently, all assessments express a positive prospect for PVTrans when the prediction of crude oil transportation will be in a rising cycle in 2020. Viet Capital Securities (VCSC) forecasts EPS of PVTrans to achieve annual compound growth of 10.4% in 5 years based on Nghi Son Refinery Plant from 2020 onwards and new coal/LPG transportation contracts. Especially PVTrans has a strong power, is evaluated as the largest liquid transportation corporation in Vietnam with a modern fleet and competitive prices of services. 

In addition, PVTrans has the transparent financial situation to ensure sustainable development. With many highlights in business activities, PVT share is highly appreciated and interested by investors in Vietnam stock market. VCSC suggests that PVT is currently trading at attractive valuation, P/E of 2019 is 8.0 times and EV/EBITDA is 4.2 times which 28.4% lower than enterprises in the same industry. Therefore, VCSC raises "Buy" recommendation for PVT share with a target price of VND 22,800/share (total return of 46% including 6.1% dividend yield). 

Recently, the second time that PVTrans has also been honored by Vietnam Forbes in the 50 best listed companies in 2019. PVTrans is also the unique subsidiary of PVN voted inTop 10 reputable listed companies in 2019 by Vietnam Report. Because of the high appreciation of prestigious international organizations, PVTrans gradually expresses the development  on the Vietnamese stock market.

In the last 6 months of 2019, PVTrans will continue to maintain stable operations crude oil and products oil transportation in the domestic and foreign markets as well as ship leasing in the international market.; transport all crude oil input and products oil output for oil refineries; operate FSO/FPSO in the oilfields effectively.

With the goal of stable and sustainable development, in the following months, PVTrans will continue to accelerate the progress of projects in both the parent company and subsidiaries to reach the target as planned. In particular, PVTrans continues to follow the operation of Nghi Son Refinery Plant, participate in bidding to transport input and output for the Plant; in the other hand, operate means of transportation for domestic and international enterprises actively. In parallel, PVTrans enhances technical management and safety for vessels, controls management, technical and necessary materials and services costs strictly  to ensure that vessels operate continuously, safely, efficiently and economically.

Especially, to ensure the maintain the stable financial indicators, PVTrans also focuses on strengthening corporate governance, strictly controlling the financial indicators of the parent company and the whole Corporation; fully implementing obligations to the State budget to balance operating cash flow, improving the efficiency of capital use, optimizing costs to save and prevent waste of each stage in the service supply chain. to gradually improve business efficiency. 

Determining the goal of contributing to the development of the maritime industry and Vietnam's petroleum industry, in the coming years, PVTrans will continue to consolidate and rejuvenate the fleet and improve service quality and capacity, maintain domestic transportation market share; furthermore, promote the brand in international markets such as Middle East, West Africa, Korea, Japan ... affirming as the leading transportation enterprise not only in Vietnam but also the reputable one in the area. These are solid and reliable elements for investors.