In 2021, with the assessment that the oil and gas market is still facing many difficulties, PVD sets a consolidated revenue plan of 4,400 billion VND, profit after tax of 25 billion VND, down 16% and 87% respectively compared to the year 2020.
PetroVietnam Drilling and Drilling Services Corporation (PV Drilling, code: PVD) has just announced the postponement of holding the 2021 Annual General Meeting of Shareholders due to the COVID-19 translation in the city. Ho Chi Minh City is going complicated and under the direction of the People’s Committee of Ho Chi Minh City to limit crowds.
The timing of the reorganization will be determined at an appropriate time and information will be released based on the disease situation and the regulations of the competent authority.
According to the original plan, PVD expected to hold the General Meeting of Shareholders on May 14 in District 1, Ho Chi Minh City. The content of the meeting revolved about business plans for 2021, profit distribution plans for 2019 – 2020, dividend plans.
In 2021, PVD sets a consolidated revenue target of 4,400 billion dong, parent company’s after-tax profit is 25 billion dong, down by 16% and 87% respectively compared to 2020.
According to PVD’s management, the proposed plan is based on the predictions that the oil and gas market is still facing many difficulties, the domestic drilling program is estimated to be low, the unit price of self-raising is still low and oversupply. The drill is still at a high level.
PVD’s business results in recent years. (Source: MH compiled from the annual consolidated financial statements).
Regarding the investment plan, the company plans to spend VND445 billion, while last year spent more than VND 1,161 billion.
In which, the company will mainly spend money for the purchase of drilling rigs and heavy drilling rigs for PV Drilling V and expanding and repairing residential areas on PV Driiling III.
Regarding the dividend plan, this meeting will discuss the profit distribution plan in 2019. Previously, the company repeatedly requested to pay 10% share dividend for 2019.
Regarding operations in the first quarter of 2021, management sets a profit target in the first quarter of the year. In fact, PVD had a huge loss of 110 billion dong (16 billion dong profit in the same period) due to under-cost business in the context of oil prices continuously climbing since the end of April 2020 up to now.
At the beginning of March, there was a time when Brent oil price exceeded 70 USD / barrel. Compared to the record low time of nearly two decades (the end of April 2020), the price of Brent oil has more than tripled and compared to the first day of the year, the price of oil has increased by nearly 30%.
As an upstream oil and gas company with main activities of drilling and exploitation, PVD is expected to react more slowly to changes in oil prices.
Source: vietnambiz.vn – Translated by fintel.vn