JX Nippon Oil & Energy investment in Petrolimex bears fruit in first year
With the pay-out ratio of 32.24 per cent, each shareholder of Vietnam National Petroleum Group (Petrolimex) will receive VND3,224 ($0.14) per share. The petroleum giant will pay a total of VND3.736 trillion ($165.7 million) in cash dividends for 1.16 billion outstanding shares.
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Following the VND9 billion ($399,000) loss in 2014, the biggest fuel distributor in Vietnam looked to sell between 15 to 25 per cent of its stakes to raise chartered capital and reduce state holding in the group to below 75 per cent.
In April 2016, after nearly two years of negotiations, JX Nippon Oil & Energy officially acquired 8 per cent of Petrolimex’s shares for around ¥20 billion, approximately $183 million.
With Petrolimex’s positive business outcomes following the restructure, JX Nippon Oil & Energy can taste the sweet fruits of its investment after a single year. The dividend payment will take place at the end of August 2017.
The Ministry of Industry and Trade is currently representing the state as a stakeholder, with 75.87 per cent in Petrolimex, equal to 982 million shares. The state is looking at more than VND3.16 trillion ($140.1 million) in dividend payment.
Petrolimex officially listed on the Ho Chi Minh City Stock Exchange (HOSE) on April 21, 2017 at VND43,200 ($1.9) per share. The current price of PLX shares is VND69,000 ($3).
As of December 31, 2016, Petrolimex’s total assets reached VND54.2 trillion, approximately $2.4 billion. Its consolidated net revenue in 2016 was VND123 trillion ($5.46 billion) and pre-tax profit reached VND6.3 trillion, or $279.4 million (up 68 per cent compared to 2015).
