“New move” of PVMachino after divestment

Company information
icon date22/07/2023

Mr. Pham Van Hiep – Chairman of PetroVietnam Machinery – Equipment Joint Stock Company PVMachino said that he would reveal the company’s new move after divestment.

POW profit is more than 350 billion dong after 6 years of investing in PVMachino

The general meeting of shareholders in the company discussed and said that the company will move to list on HOSE in 2021.

POW profit more than 350 billion

Post-divestment PVMachino still develops based on its great strength of providing commercial contracts for the Oil and Gas industry, but will aim to invest in large projects. Specific and detailed plans will be transparent after PVMachino completes the new operating apparatus.

Since March 3, 2021, since the divestment of PV POWER in PVM, has attracted a lot of public attention and attracted many investors.

According to Mr. Pham Van Hiep – the company’s president, the POW divestment at PVMachino is to perform a political task, according to the restructuring project approved by the Vietnam Oil and Gas Group and the Government. During the divestment process, POW correctly and fully complied with the provisions of the law.

After valuing the units, the starting price was set at 21,500 VND/share. According to the provisions of the Law on Securities and the Law on Enterprises, the Board of Directors of POW decided to divest PVMachino with a starting price of 22,500 VND/share – higher than the valuation of 1,000 VND/share.

Moreover, the Chairman of Petroleum Machinery – Equipment Joint Stock Company also added that: POW has divested all 51.58% of capital in PVMachino with an average price of approximately 27,600 to 27,700 VND/share. POW has collected about 540 billion VND. This has helped POW earn more than 350 billion dong in profit after 6 years of holding capital at PVM.

PVM revenue continues to soar

Accordingly, in the second quarter of 2021, PVMachino recorded a revenue of 222.7 billion dong, up 135% over the same period in 2020. However, COGS also increased by 135%, leading to the same profit margin at level 4.3%.

During the period, revenue from financial activities, mainly dividends and distributed profits, was recorded at VND 40 billion, down 29% YoY, but continued to contribute the majority of net profit from operating activities. business of the enterprise.

Currently, PV Machino owns 100% of capital in Saigon Oil and Gas Equipment Co., Ltd., 49.78% of capital in Da Nang Machinery – Equipment Joint Stock Company.

On the other hand, thanks to the savings in corporate administration costs, which was only 1/4 of the same period last year, PVM recorded 31.3 billion dong of profit after tax, up 123%.

Accumulated in the first 6 months of 2021, the business achieved 354.5 billion dong in revenue and 32.3 billion dong in after-tax profit, up 26% and 46% respectively over the same period.

“Golden” land use plan

Mr. Pham Van Hiep said about the plan to use gold land and the land that the company exploits:

Land area No. 8 Trang Thi PVMachino is leased by Hanoi People’s Committee, the land lease contract has expired since 2016. Up to now, PVM has not signed a land lease contract with the authorities.

“However, this is a form of land leased with annual payment, when valuing that land cannot be as some investors have said. The company’s leadership is also making great efforts to work with the authorities in Hoan Kiem district and Hanoi city to invest and do the next work.” – Mr. Pham Van Hiep spoke

On the other hand, the lease contract at the 2.36ha land plot in Viet Hung commune, Dong Anh district has also expired since 2016.

“We have also repeatedly sent a letter to the People’s Committee of Hanoi City and the People’s Committee of Dong Anh District to continue to lease the land, but we have not yet received a response. We have contacted and cooperated with other units to optimize the management of that land,” said Mr. Pham Van Hiep.

In addition to the two other properties, which are the land plot in Khuong Dinh – Thanh Xuan and in Le Chan – Hai Phong, PVMachino’s leaders said that: It is the recovered property except for the debts of the partners. Over the next year, we will optimally look at the two assets the company owns.

In conclusion, Chairman of PVMachino’s Board of Directors committed: “The new management will meet again, have a new orientation, commit to increase profits and increase company’s assets”.

In 2021, PVM will also move listing from UPCOM to HOSE. In 2020, PVM also planned to change the floor, but the number of shareholders has not met the requirements (less than 300 shareholders), up to now, PVM has nearly 2,800 shareholders.

PVMachino’s new move after POW’s divestment has opened up many opportunities for many investors and customers.