PV Building: Will IPO in 2016

After two corporate restructuring periods in 2010 and 2014, PetroVietnam Building and Trading Joint Stock Company (PV Building) has made remarkable progress, with equity and profits increasing more than 3 times. With the goal of building PV Building into a strong enterprise, Vietnam Oil and Gas Group (PVN) has decided to transform PV Building into a public company to deposit and list shares in 2016. Mr. Tran Doan Thinh – Director of the company had an interview about the goal of this third restructuring period.

After two corporate restructuring periods, what is the greatest success that PV Building has achieved, sir?

PV Building was established in March 2009 with 3 founding shareholders: PetroVietnam Construction Corporation (PVC), Binh Son Refining and Petrochemical Company Limited (BSR) and PetroVietnam General Services Joint Stock Corporation. Currently, PV Building has 3 shareholders: BSR is the controlling shareholder accounting for 96.53% of charter capital, Cam Thanh Guest House under the Quang Ngai Provincial Party Committee Office accounts for 3.14% of charter capital and a group of individual shareholders accounts for 0.33% of charter capital.

2010 marked the development of the company with revenue increasing by 454.9% compared to 2009, the shareholder structure had a big change when all of PVC’s capital contribution was transferred to BSR. In the following years, the company’s total revenue increased and was 400,922 billion VND in 2011 (increased by 945.6% compared to 2010); 698.25 billion VND in 2012 (increased by 174% compared to 2011); 1,448.51 billion VND in 2013 (increased by 207% compared to 2012). In this restructuring, the company’s business activities focus on three main areas: Services, trade and investment.

So what is the goal of this restructuring, sir? The second restructuring phase of PV Building began in 2014 with PVN’s policy of approving the controlling shareholder BSR to increase its capital contribution at PV Building by contributing capital with the assets of Dung Quat Packaging Factory. With this policy, PV Building has entered a new development phase with its charter capital increasing from 55 billion VND to over 175 billion VND. The difficulties in the initial stage after transferring the Packaging Factory have been quickly resolved, and up to now, packaging production and trading has become one of the 3 main production areas of the company. In particular, the 3-layer PE bag line containing plastic particles supplied to Dung Quat Oil Refinery always ensures progress and increasingly high quality. Revenue from packaging in 2015 alone reached 159.5 billion VND/total revenue in 2015 was 601.49 billion VND. In addition, trade and logistics activities continue to be maintained and promoted.

It can be said that the company has entered a new development phase with a capital scale 3 times larger than before, which has placed higher requirements on the enterprise from human resources, management system to orientation and selection of main business lines. Although production is a completely new field, it is the absolute strength of the parent company BSR. Therefore, completing the restructuring work allows the company to access all support from BSR in the most effective way as well as mobilize resources from society, transform and improve operational efficiency, improve corporate governance, and promote information transparency.

After the IPO, which areas will the company’s production and business focus on?

According to the plan, in 2016, PV Building will be listed on the Vietnam stock exchange. In the development roadmap, by 2020, PV Building strives to become a leading logistics enterprise serving the Oil and Gas industry in the Central region. Accordingly, the company will focus on 3 areas of operation in order of priority. Specifically, logistics services include: House management services, accommodation services, other logistics services; production and trading of packaging products. Trade includes: Trading PP plastic beads and other types of plastic beads, supplying materials for BSR and BSR-BF, consuming petrochemical refining products (gasoline, various oils, LPG, etc.).

Thank you!

Source: baocongthuong.com.vn