An oil and gas giant on the stock exchange is investing in renewable energy

The General Meeting of Shareholders of Vietnam Petroleum Technical Services Joint Stock Corporation (code: PVS) recently approved the addition of business lines including: electricity production; electricity transmission and distribution; Construction of industrial projects - renewable energy (wind power, solar power, tidal power); Construction of structures other than houses...

The company said that these new fields will promote the capacity, experience and strengths that have been confirmed in many oil and gas projects that PVS has successfully implemented, and at the same time, promote energy transition according to the trend. direction of a green, clean, sustainable world, increasing renewable energy as well as finding opportunities and increasing the efficiency of production and business activities in the context of oil and gas projects declining due to the impact of the Covid pandemic. -19. 

It is known that Vietnam National Oil and Gas Group (PVN) - the largest shareholder has approved PVS to add offshore wind power investment to its main business line.

This is an important milestone in PVS's development strategy in the coming time, in line with the orientation of Vietnam National Oil and Gas Group in the context of a strong energy transition in the world and Vietnam. is developing policies to encourage green, clean and sustainable use of energy according to the Government's international commitment to reduce greenhouse gas emissions with the goal of reaching zero by 2050. Accordingly, The Government will prioritize increasing the proportion of renewable energy and reducing dependence on fossil energy to ensure compliance with the national electricity plan and wind power is a field with development potential.

With a coastline of more than 3.000km, Vietnam is considered the country with the best wind resources in the region. In particular, according to research by the BVG Organization sponsored by the World Bank, some areas have wind speeds of up to 7m/s, equivalent to the average wind speed in the Netherlands, where floating reputation in the field of wind power. With capacity and experience as a leading contractor in the field of oil and gas engineering, especially offshore, PVS has many advantages in leading the development of offshore wind power projects in Vietnam.

PVS is not a "novice" in the field of wind power, the business has participated in providing services for the majority of near-shore wind power projects in the Southwest region such as transportation, installation of towers, wind turbines, spreading Underground cables. In addition, PVS is also providing long-term specialized vessels to serve the transportation of personnel, operation and maintenance equipment at the Binh Dai - Ben Tre wind power project and the wind power project in Tra Vinh. 

Currently, PVS is implementing a contract to supply, install and operate FLIDAR floating buoys to measure wind and hydrology for the Thang Long offshore wind power project of customer Enterprize Energy in the Binh Thuan coastal area. In foreign markets, PVS won the international bid for the design, procurement and manufacturing of 2 offshore substations (OSS) for the Hai Long 2 and 3 offshore wind power project in Taiwan.

With the addition of offshore wind power investment to its business lines, PVS is currently the only unit in the Vietnam National Oil and Gas Group with full functions and legal basis to carry out investment work, Developing and operating offshore wind power projects in Vietnam.

From a financial perspective, after business continued to decline due to the impact of oil prices, PVS also needed to find new, groundbreaking directions to expand business lines to further develop the business. 

In the third quarter, PVS net revenue decreased by 3% over the same period, to VND 33,3 billion. Meanwhile, the rate of reduction in cost of goods sold is lower, only 3.980%, resulting in gross profit from sales and service provision reaching 31,8 billion VND, down more than half compared to the figure of 204 billion VND recorded. third quarter of last year.

Joint venture companies brought in 198 billion VND in profit, a large increase compared to the loss of more than 36 billion VND recorded in the third quarter of 3. In addition, the company also has other income of more than 2020 billion VND which is the refund of warranty provisions for mechanical projects that have fulfilled warranty obligations according to regulations. As a result, in the third quarter of 56, PTSC Petroleum Engineering's after-tax profit was 3 billion VND, an increase of 2021% compared to the third quarter of last year, of which the after-tax profit belonging to the parent company's shareholders reached 240 billion VND.

Accumulated in the first 9 months of 2021, the company's revenue reached 9.651 billion VND, down 34,5% over the same period and completing more than 96% of the year plan. PVS's profit after tax is 575 billion VND, down 9,4% compared to the profit achieved in the first 9 months of 2020, completing and exceeding the profit target set for the whole year by 2,7%. 

PVS has total assets exceeding VND 24.600 billion, with total liabilities exceeding VND 11.000 billion. PVS currently has more than 8.000 billion in cash in term and non-term deposits at banks, so it is expanding into new fields, the company already has available capital.