Vietnam's PV Gas forecasts net profit to fall 26 pct in 2017

By VnExpress   April 18, 2017 | 10:58 am GMT+7
Vietnam's PV Gas forecasts net profit to fall 26 pct in 2017
Workers are seen at Ca Mau gas pipeline project operated by PV Gas in the southern province of Ca Mau. Photo courtesy of PV Gas.

The company says it's prepared for the worst given the unstable world economy and unpredictable global oil prices.

PetroVietnam Gas Corporation, Vietnam's biggest listed energy firm, has targeted its net profit this year at VND5.26 trillion ($232 million), down 26 percent from 2016.

That's because revenue in 2017 is projected to reach VND51.5 trillion, or 15 percent below the 2016 results, with an assumption of world oil prices at $50 per barrel, the Ho Chi Minh City-based company also known as PV Gas told shareholders at an annual meeting Monday.

PV Gas, where state oil and gas group PetroVietnam owns a majority stake, said the world economy is forecast to grow at a low pace this year, while global oil prices have been volatile.

The company will focus its efforts and investment this year on putting more gas fields into operation.

PV Gas said it made VND1.48 trillion in the first-quarter net profit, or 28 percent of its annual profit target.

As its net profit last year beat the firm's initial target by 38 percent, the company will pay a 40-percent dividend for 2016, instead of 30 percent in its initial plan, and the new payout rate was approved at the shareholders' meeting. 

Crude oil price this year is forecast at $55 per barrel, up 29 percent from 2016, the World Bank said in its January 2017 Commodity Markets Outlook.

PV Gas’ shares were trading up 1.3 percent at 0324 GMT Tuesday at VND54,700 ($2.41) each.