Petrol distributor in Vietnam obtained approval for plans to diversify operations
Vietnam’s state-owned petroleum distribution giant Petrolimex plans to develop liquefied natural gas and petrochemical industries alongside its current focus on fuel import and distribution, pursuant to a business plan through 2015, as approved by the Prime Minister in August. The plan involves taking strategic measures to transform Petrolimex into a large-scale economic group. It aims to use high technology so that it may play an important role in establishing the domestic petroleum market and ensuring national energy security. Under the plan, Petrolimex has targeted annual earnings by 2015 of more than VND358 trillion (US$17 billion) and pre-tax profits of nearly VND4.5 trillion (US$214.3 million).
Petrolimex details plans for development and expansion
To achieve its goals, Petrolimex has outlined the various developmental and expansion programs it will undertake:
- Review its distribution system to increase efficiency of trade transactions and improve product quality
- Expand its network of direct dealers to remote, border and island regions
- Focus on developing warehouses and ports in all major regions of the country to receive imported petroleum products
- Seek capital from equalization and bank financing. The group needs VND5 trillion (US$238.1 million) for the construction of its Nam Van Phong refinery complex alone, plus another VND4.2 trillion (US$200 million) to develop distribution infrastructure.
- Petrolimex will withdraw investment from non-core and inefficient lines of business
The group is set to complete the restructuring plan in the third quarter of this year. (August 29, 2012)
