ANNUAL REPORT 2023
ABBREVIATIONS
GMS: General Meeting of Shareholders
BOD: Board of Directors
BOM: Board of Management
BOS: Board of Supervisors
CEO: President & CEO
PVN: Vietnam Oil and Gas Group
Introduction
PTSC’s Governance System
Relationship between Parent Company –Subsidiaries and Joint - Venture Companies
Enhancing the Corporate Governance System
1.
““By identifying, continuously assessing risks, and managing fluctuations, PTSC has actively innovated and seized business opportunities in the energy transition trend. This has led to the development of new products, expanded participation in tenders, and increased involvement in offshore renewable energy projects, helping to offset the declining traditional business volume experienced over the past period”
From the second half of 2022 through the end of 2023, domestic businesses continued to face numerous difficulties in production and operation. The number of businesses exiting the market was significantly higher compared to the same period last year. The decline in credit absorption capacity led to slower credit growth. The decrease in investment demand and resilience clearly demonstrated the extent of difficulties faced by the businesses in 2023. The global oil and gas industry was also facing significant fluctuations and challenges, including supply chain disruptions, the impact of global conflicts, and the ongoing energy transition from fossil fuels to cleaner, greener alternatives, driven by global and regional commitments. Amid the challenging domestic and international landscape, the development of new exploration projects to boost domestic reserves faced significant hurdles, resulting in delays and setbacks. The intense competition from private companies for the dwindling traditional business volume has further compounded the challenges. Moreover, the sharp fluctuations in fuel prices, raw materials, transportation costs, and input goods and services have had a profound impact on the production and business operations of PTSC and its subsidiaries. By identifying, continuously assessing risks, and managing fluctuations, PTSC has actively innovated and seized business opportunities in the energy transition trend. This has led to the development of new products, expanded participation in tenders, and increased involvement in offshore renewable energy projects, helping to offset the declining traditional business volume experienced over the past period. PTSC has successfully exceeded its 2023 business plan targets, achieving consolidated revenue of 21,742 billion VND and consolidated profit before tax of 1,277 billion VND, representing 165% and 164% of the annual plan, respectively. Notably, the company’s overseas service revenue accounted for over 55% of total revenue in 2023, a significant increase compared to previous year, highlighting efforts of PTSC’s employees, their determination and adaptability to sustain growth. The positive results of 2023 have solidified PTSC’s position, stature, and brand in the energy market. This achievement is a testament to PTSC’s spirit of enthusiasm, aspiration, and its ability to adapt to challenges and transform in a dynamic environment. Through proactive measures such as actively seeking new opportunities, implementing comprehensive solutions, and driving business development, PTSC has successfully navigated through difficult times and strengthened its overall capabilities. The company’s active participation in the energy transition and renewable energy sector, coupled with its commitment to resolving challenges, has led to improved business performance and ensured the protection of the interests of the State, Shareholders, and Employees, thereby
contributing to PTSC’s sustained growth and stability.
In 2024, the oil and gas industry is expected to have promising outlook, driven by positive oil prices and the accelerated FID approval process in June 2024 for major upstream projects (Block B O Mon, Su Tu Trang - phase 2B, Lac Da Vang) as well as the ongoing LNG electrification transition. With a strong culture of legal compliance, prioritizing collective interests and project success, and fostering unity, collaboration, and growth, along with the guidance and support of higher authorities and PVN, coupled with the company’s accumulated experience and development, PTSC’s leadership, executives, and employees are unwavering in their commitment to successfully completing the 2024 business plan assigned by the GMS and higher authorities. They are determined to ensure the full and harmonious protection of the legitimate rights and interests of the State, shareholders, and employees.
On behalf of the Board of Directors, I would like to express my deepest gratitude to the Board of Management, executives and employees of PTSC for their contributions, dedication, efforts, and hard work. I would also like to express my most sincere thanks to the government agencies, Shareholders, Corporation, Investors, Clients and Partners who have always accompanied, trusted, cooperated and supported us and I wish you good health, happiness and new successes in 2024 and beyond.
Phan Thanh Tùng
As usual, with each Annual General Meeting, PTSC’s Annual Report is sent to you. For us, this report is more than just a document or a financial statement for our esteemed shareholders. It is a significant publication that summarizes and provides comprehensive information about PTSC’s operations, business activities, and performance over the past year. This publication also serves as a platform for PTSC to showcase its corporate image and culture, while reaffirming our commitment to transparency and accountability to our shareholders, partners, and customers. These elements have contributed to building and strengthening the trust of investors over the years.
With the release of the 2023 Annual Report, a detailed picture of PTSC’s operations throughout the year was revealed. Celebrating its 30th Anniversary, a significant milestone, PTSC took the opportunity to reflect on and celebrate its remarkable journey. 2023 was not only a year to celebrate PTSC’s achievements, foundation, culture, and values over 30 years of development but also a year to further solidify the corporate position and brand reputation. It was a year of complete success and one that opened up many new opportunities for PTSC.
Ladies and gentlemen,
Following a period of struggle, PTSC has successfully rebounded, with its 2023 revenue propelling the Corporation back into the “20 trillion VND arena”. The Corporation has successfully exceeded all production and business targets. In the traditional oil and gas services sector, the PTSC brand continued to be strengthened and affirmed.
PTSC also made a significant mark in the offshore renewable energy sector. From the early signs a few years ago, PTSC quickly transformed new opportunities into action, making significant strides in new sectors. This led to the signing and implementation of numerous service contracts. PTSC made a remarkable leap with a total of $1.5 billion in orders for offshore renewable energy projects. PTSC’s manufactured products were exported to many markets worldwide. We saw a surge in customers actively reaching out to us. Having navigated the challenges of the post-crisis period and difficult times of work scarcity, PTSC achieved a significant milestone by securing contracts that provide job security until 2027.
PTSC’s position and stature in the new arena has made fresh progress, with the PTSC brand growing stronger each day.
This is also the collective achievement of PTSC’s united, dynamic, and creative workforce.
Ladies and gentlemen,
In order to successfully implement the plans of 2024 and beyond, PTSC would need to pursue new objectives, including in traditional oil and gas services and offshore renewable energy. This would require a flexible approach, restructuring, and a strong focus on improving productivity, capacity, and resource efficiency through lean manufacturing, lean management, and lean thinking.
With passion, enthusiasm, belief, and drive, fueled by the energy and experience of our 20 years, we are committed to standing shoulder to shoulder, striving to achieve greater heights and ensuring sustainable and stable success. The PTSC team remains united in our mission to sustain and expand our business operations, implement a variety of service solutions to ensure revenue, profitability, and a sustainable dividend stream, thereby maintaining the trust of investors and shareholders and realizing PTSC’s future vision, mission, and strategic goals.
For our valued shareholders and investors, PTSC remains committed to the highest standards of professionalism, transparency, efficiency, and commitment. We strive to be recognized as one of the best listed companies and to earn your continued trust.
We wish you good health, happiness, luck and success.
Sincerely!
“PTSC also made a significant mark in the offshore renewable energy sector. From the early signs a few years ago, PTSC quickly transformed new opportunities into action, making significant strides in new sectors. This led to the signing and implementation of numerous service contracts. PTSC made a remarkable leap with a total of $1.5 billion in orders for offshore renewable energy projects.”
Contract Signing Ceremony - Manufacture and Supply of Foundations, Greater Changhua
Offshore Wind Farm CHW 2204
On January 12, 2023, PTSC and Orsted Taiwan Ltd. signed a contract for the fabrication and supply of 33 wind turbine foundations for the Greater Changhua 2204 (CHW2204) offshore wind power project in Taiwan (China), marking a significant milestone in PTSC’s transition to large-scale, high-productivity manufacturing, officially entering the global renewable energy supply chain and laying the foundation for numerous new service opportunities in the renewable energy sector in the future.
02. Expanding Service Provision to the Middle East
On May 17, 2023, PTSC Abu Dhabi branch was granted a business license by the UAE Ministry of Economy, marking a significant milestone in expanding service provision to the Middle East. Notably, PTSC Marine won a bid to provide service vessels, PTSC G&S was contracted to supply ROVs to Saudi Aramco, and PTSC M&C and POS continued to carry out projects in Qatar and Saudi Arabia.
Granted a Marine Survey Permit for the Project to Export Offshore Wind Power to Singapore 03.
On August 24, 2023, the Ministry of Natural Resources and Environment issued a Decision approving PTSC’s activities in monitoring, surveying, and assessing marine resources in support of the investment and development project of offshore wind power for export to Singapore. The Decision handover ceremony was held solemnly on August 29, 2023, witnessed by the Prime Ministers of Vietnam and Singapore. Subsequently, on October 24, 2023, the project also received conditional approval from the Energy Market Authority of Singapore (EMA) for importing 1.2 GW of clean energy into Singapore. These events mark significant milestones in realizing the Joint Development Agreement for offshore wind power investment and export to Singapore between PTSC and its partner Sembcorp Utilities Ltd, previously signed on February 10, 2023.
04. FSO Rong Doi MV12 Project Completed with All Outstanding Issues Resolved and Ready for Handover
On September 27, 2023, PTSC successfully negotiated with all relevant parties to finalize the settlement of all outstanding issues, thus preparing for the handover of rights and obligations under the Contract for the provision of FSO Rong Doi MV12 serving the Rong Doi - Rong Doi Tay field, significantly contributing to increasing PTSC’s market share in FSO/FPSO services in the coming years.
Signing of 9th Offshore Substation EPC Contract - Significant Progress in Offshore Substation EPC Field
On October 6, 2023, PTSC M&C signed an Engineering, Procurement, and Construction (EPC) contract for an Offshore Substation (OSS) for the Fengmiao 1 Offshore Wind Power Project in Taiwan (China) of the client Copenhagen Infrastructure Partners (CIP). This is the 9th OSS contract signed and executed by PTSC, marking a significant milestone in the company’s EPC capabilities for offshore substation projects.
Successfully Built 6 State-Of-The-Art Paint Workshops in the Region
On October 7, 2023, PTSC Corporation completed the construction and put into operation 4 new surface cleaning and painting workshops (WS-01 to WS-04), and on December 26, 2023, completed the construction and put into operation 2 more painting workshops (WS-05 and WS-06). These are some of the most modern paint workshops in the Asia-Pacific region, built in record time to serve the fabrication of offshore renewable energy structures.
LLOA for EPC#1 – Block B Project
On October 30, 2023, PTSC was awarded a Limited Letter of Award (LLOA) for the Engineering, Procurement, Construction, Installation, and Commissioning (EPCI) Contract #1 of the central processing platform, living quarters platform, and flare tower for the Lot B Gas Project by the investor, Phu Quoc Petroleum Operating Company (PQPOC). This was the largest oil and gas project in Vietnam to date. The ceremony was held with great pomp and circumstance in Hanoi with Prime Minister Pham Minh Chinh in attendance. The awarding of the LLOA reaffirmed PTSC’s position and brand in the field of providing high-quality oil and gas technical services, creating a further development momentum for services in PTSC’s traditional oil and gas service chain.
On November 4th, 2023, PTSC held a ceremony to celebrate its 30th anniversary (from February 9, 1993 to February 9, 2023) with the theme “30 years of solidity, reaching out for new opportunities.” This event marked a significant milestone in PTSC’s journey, reaffirming its position, stature and brand while celebrating its achievements, foundation, culture, and values over the past 30 years.
Accelerating the Reorganization and Upgrade of Infrastructure of the Fabrication Yard Area of Vung Tau Downstream Port.
On November 23, 2023, PTSC officially completed all procedures for the main road connection, one of the typical milestones along with the 20-meter wharf investment and rearrangement of the workshops, marking a significant step in upgrading the fabrication yard infrastructure at Vung Tau Downstream Port. These improvements would enhance yard utilization and pave the way for increased investment and service revenue in the future.
10. Signing the EPC Contract for the Onshore Pipeline of Block B - O Mon Gas Pipeline Project
On December 22, 2023, PTSC and Southwest Pipeline Operating Company (SWPOC) officially signed a contract for detailed design of the entire project, procurement, construction and installation of the onshore pipeline, stations, and commissioning for the entire Block B - O Mon Gas Pipeline Project, which is an important component project in the Block B Gas-Power Project chain.
Maintaining Effective FSO/FPSO Operations and Management
As of December 31, 2023, PTSC managed and operated FSO/ FPSO vessels with a continuous uptime of over 99%, exceeding contractual requirements and making significant contributions to the Corporation’s business results. Particularly, FSO PTSC Bien Dong 01 achieved a remarkable 10-year continuous uptime (2013-2023) without Lost Time Injuries (LTI), earning the trust of Bien Dong POC with a 5-year contract extension (2023-2028). The FPSO Ruby II also boasted an impressive 5,000 consecutive days (2010-2023) without any LTI.
Exceeding the 2023 Production and Business Plan
As of December 31, 2023, PTSC excellently exceeded all production and business targets. Revenue reached 21,742 billion VND (165% of the annual plan), pre-tax profit reached 1,277 billion VND (164% of the annual plan), and contribution to the State Budget amounted to 843 billion VND (145% of the annual plan), marking a highly successful year for the Corporation. After years of absence, PTSC has officially returned to the “20 trillion VND arena”.
“Offshore
With a solid foundation and a rich tradition of over 50 years, through various stages of development such as mergers, corporatization, and model transformation, PTSC has gradually developed and strengthened its position to become a leading corporation in Vietnam and a prominent brand in the oil and gas and industrial services in the region. Since its official launch in 1993, the PTSC brand has consistently demonstrated vibrant energy, strong resilience, and an unwavering determination to overcome challenges and achieve new heights.
PetroVietnam Technical Services Corporation (PTSC) was established on February 9, 1993, as a subsidiary of the Vietnam Oil and Gas Group. PTSC has made a strong mark as a leading provider of oil and gas, industrial, and energy technical services in Vietnam, and has established itself as a major regional brand. PTSC’s core business is providing technical services in the oil and gas and industrial sectors. In particular, its strategic and specialized services have been professionalized and developed to international standards, including offshore EPCI, onshore EPC, FSO/FPSO floating storage, offshore oil & gas service vessels, seismic and subsea surveys, offshore installation, operation and maintenance, marine services, and highly-skilled manpower supply...Specifically, in the trend of energy transition to maximize the value of the service chain, PTSC has focused on and promoted the development of renewable energy, particularly offshore renewable energy.
With a solid foundation of resources, facilities, and a team of highly skilled and creative professionals who have successfully completed numerous offshore projects with highest quality, PTSC is committed to leveraging its strengths in terms of capabilities and experience to ensure the success of future projects, solidifying and enhancing its reputation as a trusted contractor, partner, and business entity for its clients.
Domestic trading name
Foreign trading name
Trading name abbreviations
Petrovietnam Technical Services Corporation
PTSC PVS
0100150577
VND 4,780 billion
VND 13,544 billion according to the 2023 audited financial statements)
5th Floor, Petrovietnam Tower, 1-5 Le Duan Str, Ben Nghe Ward, District 1, HCM City, Vietnam.
(+84) 028.39102828
(+84) 028.39102929
ptsc.com.vn
EPCI for offshore facilities (FSO/FPSO) Installation, Operation and Maintenance
Offshore Facilities Port & Supply Base
Offshore Support Vessels
Seismic, GEO, Survey and ROV
EPC for Industrial plants
Renewable energy
Separate parts of PTSC’s core business to form distinctive oil and gas service companies.
Developed fleet of offshore support vessels and expanding PTSC Vung Tau Supply base to become modern, multipurpose base.
Successfully performed accommodation block LQ-CPC 99 for Vietsovpetro, laying strong foundation for the development of oil and gas mechanical fabrication and construction service.
2006: Successfully privatezed and performed IPO stock to public.
01.01.2007: Officially operated business as joint stock company, a historical turning point of PTSC’s development.
09.02.2007: Changed organization structure in to Affiliated - Subsidiary company.
20.9.2007: Official notice of PTSC’s stock in HNX with stock code PVS..
The Foundation of Petroleum Technical Services Company (PTSC) was a merger of 2 companies PSC & GPTS. It is the only government enterprise supplies oil and gas technical services with the initial core business are offshore support vessels; port and supply base and manpower for oil and gas contractors.
Performed O&M contract for Dinh Co Gas Processing Plant, 370 km 2 phase gas pipeline and Lan Tay Technological Platform which set foundation of O&M services.
Signed shareholding agreement of investment in FPSO Ruby Princess by and between PTSC, PVI and PVFC. Setting stepping stones for FSO/FPSO services
Founded PTSC G&S; Investing in the first seismic survey vessel - 2D with ROV units, GEO vessel, improved competitive ability in marking high technology services - seismic survey, GEO Survey and Subsea Services.
Joined with MISC to invest in FSO Orkid and FPSO Ruby, affirming ability in FSO/FPSO field.
2010: Initial public offering to increase charter capital up to 2,978 billion VND via public offering;
Successfully played the role of EPC general contractor to perform Bien Dong project with total volume of engineering and manufacturing up to 30.000 ton and worth 1 USD billion, the biggest EPC project in Vietnam that time.
Increased charter capital to 4,467 billion VND
2011 - 2015
2016 - 2019
As of December 31st, 2018, the total value of PTSC earned from overseas JV is 105 million USD.
Awarded EPC contract and successful implementing onshore oil and gas industry projects: NPK Fertilizer Factory; Ammonia NH3 Production Plant for PVFCCo; Ca Mau Gas Processing Plant for PV Gas; Thi Vai LNG termianl project and EPC project of pipeline collection and gas transportation of Sao Vang - Dai Nguyet field for Vietnam Gas Corporation (PV GAS); Southern Vietnam petrochemical complex projectPackage A1 (LSP - A1) for TPSK - joint venture (Italy - Korea).
Awarded and implementing projects for clients in other industries: Haiphong terminal project, Expanding Go Dau factory for Top Solvent (Thailand) and Vopak (Holland) Galaxy Expansion – Phase III; Nam Dinh Vu Aviation Fuel Warehouse for Nam Dinh Vu Aviation Fuel Port Joint Stock Company (DV Seaport); Fabrication, installation ISBL technology pipeline and installation equipment - Polypropylene plant for Hyosung Vietnam.
2020
Completed Sao Vang CPP Project and officially received the first gas on Nov 16th, 2020. This Project was honorably attached with “Party’s 13th National Congress Celebration Works” signboard.
Performed 51% ownership investment in FSO PTSC Bien Dong 01 and FPSO Lam Son, acquire knowhow to engineer, construct and operate FSO/FPSO. Affirming position in FSO/FPSO regional market.
Increased charter capital up to 4,467 billion VND.
Winning International competitive bidding and successfully performed projects: HRD Platform for ONGC; Maharaja Lela South (MLS) in Brunei for Total E&P, continued affirmed EPCI capacibility and market position.
Received profit from oversea joint ventures.
Awarded and perfored project Gallaf - Al Shaheen for North Oil Company (NOC) in Qatar with a total contract value of more than 300 million USD; Completed building, launching, handing over and operating successfully and safely a fleet of 8 new built vessels for Nghi Son Refinery Plant (NSRP).
On October 4th, 2019, successfully installed and handed over IGP owner a Jacket of Sao Vang Central Processing Platform weight 12,500 tons inrespect to Sao Vang Dai Nguyet project, confirming PTSC’s capacity as EPCIC’s general contractor.
PTSC reached the finish line ahead of the year plan objective, exceeded all targets and financial plans, stepped through the most challenging period.
On Nov 16th, 2020, Golden Star FSO officially received the first condensate , marking a milestone of great importance in Sao Vang - Dai Nguyet Project, together with Sao Vang CPP and intra-field pipeline system also implemented by PTSC as the general contractor.
Gallaf Project (Al Shaheen) in Qatar - an EPCI international project awarded to PTSC with high volume and total value of 320 million US dollars - successfully implemented the Design, Procurement, and Manufacturing phase in Vietnam and Transportation, Installation, Commissioning 3 WHP Gallaf
Project 1 with over 800 PTSC employees in Qatar during the Covid-19 pandemic outbreak.
Despite of countless difficulties and challenges, thanks to considerable efforts and internal strength, PTSC implemented various coordinated solutions to overcome the “double crisis” triggered by oil price slump and Covid-19 pandemic to achieve impressive results and stable growth: consolidated revenues of over 21,313 billion VND, profit before tax of 1,025 billion VND, contribution to State Budget of 909 billion VND.
PTSC added business lines: power generation; power transmission and distribution; construction of civil engineering works (construction of industrial works - renewable energy, construction of buildings other than houses) to continue to achive development opportunity when participating directly from investment to related services supply with advantage of the leading provider in offshore and onshore industrial services in Vietnam.
On July 2021, PTSC continued to be awarded the contract by the NOC (the project owner) to implement the Gallaf - Phase 3 project in Qatar with a volume of over 19,000 tons after winning a fierce competition over international contractors all over the world.
On September 2021, PTSC was selected by Northland Power Development Services Inc. and Yushan Energy Co., Ltd. for signing an agreement with priority on design, procurement, and development of 02 transformer stations for Hai Long 2 and Hai Long 3 wind power projects offshore Taiwan.
On August 24, 2023, the Ministry of Natural Resources and Environment issued a Decision approving PTSC’s activities in monitoring, surveying, and assessing marine resources to serve the investment and development projects of offshore wind power for export to Singapore.
The year 2023 marked PTSC’s 30th anniversary with remarkable achievements, consolidating its position, stature, and brand in the energy market. Investment activities yielded positive results with vibrant production and business operations. Business development and service activities achieved significant successes, marked by the signing and execution of numerous important contracts. PTSC officially reached 20 trillion VND in revenue after years of absence.
On May 17, 2023, PTSC Abu Dhabi branch was awarded an operating license by the UAE Ministry of Economy, marking a significant milestone in the expansion of service to the Middle East.
On November 23, 2023, PTSC successfully completed all procedures for the main road connection, one of the typical milestones along with the 20-meter wharf investment and workshop rebuilding, marking a significant step in upgrading the fabrication yard infrastructure at Vung Tau Downstream Port.
PTSC exceeded its production and business targets, ensured safety for its employees at all domestic and international construction sites and projects in the context of complicated developments of Covid-19 pandemic, and generated adequate income for employees.
Completing the legal basis and becoming the only corporation in Petrovietnam with investment functions in the field of renewable energy and is coordinating with foreign partners to strongly implement renewable energy projects to serve both domestic and export demand.
Participating in international bid to the final round and potentially winning the project of manufacturing offshore wind power stand CHW2204 in Taiwan; approved to the list of offshore wind stand suppliers for Orsted - the world’s number one investor in renewable energy. This is an important milestone marking the great change of PTSC, shifting from a single-unit production model to a mass production model, large-scale, high-productivity, opening a new and stable direction, long-term, sustainable for PTSC for many years to come, in line with the trend of energy transition that is taking place strongly globally.
Establishment of PTSC Abu Dhabi branch in UAE, expanding the scope of activities; right after its establishment, PTSC mobilized vehicles, equipment, personnel for bidding and providing services for oil and gas projects in the Middle East.
In 2022, PTSC has proactively seized opportunities in the energy transition trend to develop new products, expand the provision of services in the field of offshore renewable energy as well as promoted development. services to foreign markets such as the Middle East, India, Malaysia, Brunei, Indonesia, Cambodia... The proportion of revenue from providing services abroad in 2022 reached over 40%, a much higher increase compared to previous years which shows PTSC’s efforts to shift revenue structure to foreign markets to ensure stable and sustainable development.
Projects awarded and completed: Fabrication and delivery of 33 offshore wind turbine jacket foundations for the Ørsted Taiwan Ltd - the Greater Changhua 2204 (CHW2204) offshore wind power project in Taiwan (China); Engineering, Procurement, and Construction (EPC) of the offshore substation (OSS) for the Fengmiao 1 offshore wind power project in Taiwan (China) for the client Copenhagen Infrastructure Partners (CIP); Engineering, Procurement, Construction, Installation, and Commissioning of the central processing platform, living quarters platform, and flare tower (EPCI package #1) for the Lot B Gas Project of the investor, Phu Quoc Petroleum Operating Company (PQPOC); Detailed design, procurement, construction and installation of the onshore gas pipeline and stations, and commissioning of the entire Block B - O Mon Gas Pipeline Project - Southwest Pipeline Operating Company (SWPOC), which is an important component project in the Block B Gas-Power Project chain; Providing service vessels, supplying ROVs to Saudi Aramco.
SHAREHOLDERS’ MEETING
LEGAL DIVISION
HUMAN RESOURCES MANAGEMENT
FINANCIAL AND ACCOUNTING DIVISION
REPRESENTATIVE OFFICE BRANCHES
PTSC SUPPLY BASE
PTSC MARINE
PTSC QUANG BINH
PTSC DA NANG
PTSC LONG PHU
PTSC ABU DHABI
GENERAL ADMINISTRATION DIVISION
BOARD OF DIRECTORS
BOARD OF MANAGEMENT
SUBSIDIARIES
JOINT VENTURES/ AFFILIATES
PTSC
PTSC
PTSC
PTSC
PPS
PTSC
PTSC
PTSC
POS
PVSB
MR. PHAN THANH TUNG CHAIR MAN
DOB
1970 in Hai Phong City, Vietnam
Qualification
Master of Engineering (Professional)
Mechanical Engineer
Bachelor of Business Management
Bachelor of English language
MR. NGUYEN XUAN NGOC MEMBER
DOB
1976 in Nam Dinh Province, Vietnam
Qualification
Mechanical Engineer
MR. DO QUOC HOAN MEMBER
MR. HOANG XUAN QUOC
INDEPENDENT MEMBER (Appointed on April 28th, 2022)
MR. DOAN MINH MAN MEMBER
1969 in Hai Phong City, Vietnam
Qualification
Master of Economics, Engineerof Maritime Transportation, Engineer of Marine Controlling
1957 in Hanoi, Vietnam
Qualification
Doctor of Mechanical Engineering, Bachelor of Economics
1958 in Ben Tre Province, Vietnam
Qualification
Bachelor of Accounting, Bachelor of Business Administration
MR. LE MANH CUONG
PRESIDENT & CEO
DOB
1974 in Hai Duong City, Vietnam
Qualification
Navigation Engineer
MR. NGUYEN TRAN TOAN
VICE PRESIDENT
DOB
1964 in Hai Phong City, Vietnam
Qualification
Marine Machinery Engineer, Bachelor of Corporate Governance
MR. TRAN HO BAC VICE PRESIDENT
DOB
1978 in Nam Dinh Province, Vietnam
Qualification
Master of Business Administration, Corporate Governance Engineer, Mechanical Engineer
MR. NGUYEN XUAN CUONG VICE PRESIDENT
DOB
1977 in Ha Noi Capital, Vietnam
Qualification
Bachelor of Corporate Finance
MR. TRAN HOAI NAM
VICE PRESIDENT
DOB
1978 in Binh Dinh, Vietnam
Qualification
Master of Business Administration, Electricity and Electronics Engineer, Bachelor of Economics
MR. PHAM VAN HUNG
VICE PRESIDENT
DOB
1977 in Quang Ngai Province, Vietnam
Qualification
Master of Economic Management
MR. TA DUC TIEN
VICE PRESIDENT
DOB
1968 in Thai Binh Province, Vietnam
Qualification
Marine Machinery Engineer, Bachelor of Business
Administration
MR. LE CU TAN
(Appointed on November 08th, 2023
VICE PRESIDENT
DOB
1967 in Hai Phong City, Vietnam
Qualification
Master of Automation Engineering
MR. NGUYEN VAN BAO
MS. BUI THU HA
MR. BUI HUU VIET CUONG
CHIEF ACCOUNTANT MR. PHAM VAN TIEN SURVEYOR Sinh năm
1977 in Hai Duong City, Vietnam
Qualification
Bachelor of credit financing
CHIEF OF BOARD OF SUPERVISORS DOB
1980 in Thai Nguyen City, Vietnam
Qualification
Bachelor of Accounting, Bachelor of Business Administration
1981 in Hai Phong City, Vietnam
Qualification
Master of Operating International
Business Administration, Shipping Engineer Bachelor of Accounting
1983 in Thai Binh Vietnam
Qualification
Master and Bachelor of Economics
“The first Thi Vai LNG Receiving Terminal 1MMTPA & import-export LNG Jetty in Vietnam completed by joint venture of PTSC as EPCIC Contractor”
BA RIA-VUNG TAU PROVINCE
PTSC Marine-PTSC Supply Base-PTSC M&C -PTSC G&S-Petro Hotel-PTSC Phu MyPPS-PVSB-POS-PV Shipyard
SOC TRANG PROVINCE PTSC Long Phu
QUANG NGAI PROVINCE PTSC Quang Ngai
DA NANG CITY
PTSC Da Nang
QUANG BINH PROVINCE PTSC Quang Binh
THANH HOA PROVINCE
PTSC Thanh Hoa
HAI PHONG CITY
PTSC Dinh Vu
HA NOI
PTSC Ha Noi
Branch of PTSC –PTSC Marine
Branch of PTSC –PTSC Supply Base
Address:
Charter Capital/Investment:
Core business:
Address:
Charter Capital/Investment:
Core business:
No. 73, Street 30/4, Thang Nhat Ward, Vung Tau City, Ba Ria- Vung Tau Province
Directly under Parent Company
Management, operation and supply of service vessels
No. 65A, Street 30/4, Thang Nhat Ward, Vung Tau City, Ba Ria- Vung Tau Province
Directly under Parent Company
Management, operation, trading and exploitation of general ports
Branch of PTSC –PTSC Da Nang
Address:
Charter Capital/Investment:
Core business:
No. 11, Street 3/2, Hai Chau District, Da Nang City
Directly under Parent Company
Management, operation, trading and exploitation of general ports
Branch of PTSCPTSC Quang Binh
Address:
Charter Capital/Investment:
Core business:
Branch of PTSCPTSC Long Phu
Address:
Charter Capital/Investment:
Core business:
Hon La Port, Quang Dong Commune, Quang Trach District , Quang Binh Province
Directly under Parent Company
Management, operation, trading and exploitation of general ports
Thanh Duc Hamlet, Long Duc Commune, Long Phu District, Soc Trang Province
Directly under Parent Company
Management and performance of engineering, procurement and construction, installation, hook-up and commissioning (EPCIC) of power plant projects and industrial facilities.
Representative Office of PTSC in Hanoi (PTSC Ha Noi)
Address:
Charter Capital/Investment:
Core business:
No. 142 Nguyen Khuyen, Van Mieu Ward, Dong Da District, Hanoi Capital
Directly under Parent Company
Performing business development, production projects and other tasks assigned by Holding Company
Branch of PTSCPTSC Abu Dhabi
Address:
Charter Capital/Investment:
Core business:
Room No. 1721, 17th floor The Offices World Trade Center, Central Market. Al Markazyia, Abu Dhabi, UAE
Directly under Parent Company
Installation and maintenance of equipment at oil and natural gas fields; Operation and maintenance of oil and gas exploitation works; Marine services related to the oil and gas industry; Services for onshore and offshore oil and gas production and fields
PTSC Mechanical & Construction Limited Company (PTSC M&C)
PTSC Geos and Subsea Service Company Ltd. (PTSC G&S)
Address:
Charter Capital/Investment:
Core business:
Petro Hotel Company Limited (Petro Hotel)
Address:
Charter Capital/Investment:
Core business:
No. 31, Street 30/4, Thang Nhat Ward, Vung Tau City, Ba Ria-Vung Tau Province (PTSC M&C)
628 billion VND | Holding percentage - 100%
Fabrication and assembly of oil, gas facilities.
PTSC Labuan Company Limited (PTSC Labuan)
Address:
Charter Capital/Investment:
Core business:
No. 9-11, Hoang Dieu Street, Ward 1, Vung Tau City, Ba Ria-Vung Tau Province
300 billion VND | Holding percentage - 100%
Operation seismic survey 2D, 3D; geophysical, seismic survey; ROV subsea survey and repair
PTSC Quang Ngai Joint Stock Company (PTSC Quang Ngai)
Address:
Charter Capital/Investment:
Core business:
14th Floor, No. 9-11, Hoang Dieu Street, Ward 1, Vung Tau City, Ba Ria-Vung Tau Province
20 billion VND | Holding percentage - 100%
Provision of tourism and accommodation services for oil and gas companies in the country and abroad.
Unit 3A-25, UO350, 3rd floor, Lubuan Times Square, 87007 Lubuan FT Malaysia
572,565 USD | Holding percentage - 100%
Supply of service vessels for oil and gas exploitation activities
Address:
Charter Capital/Investment:
Core business:
Lot 4H, Ton Duc Thang Street, Le Hong Phong Ward, Quang Ngai City
300 billion VND | Holding percentage - 100%
Management, operation and supply of service vessels; Management, operation, trading and exploitation of general port; Fabrication, assembly, repair and maintenance of oil & gas and industrial facilities
PTSC Offshore Services Joint Stock Company (POS)
Address:
Charter Capital/Investment:
Core business:
No. 65A, 30/4 Street, Thang Nhat Ward, Vung Tau City, Ba Ria-Vung Tau Province
400 billion VND | Holding percentage - 84.95%
Transportation, installation, hook-up, commissioning repair and maintenance, relocating and cleaning-up of oil & gas and industrial facilities
PTSC Phu My Port Joint Stock Company(PTSC Phu My)
PTSC Thanh Hoa Technical Services Company(PTSC Thanh Hoa)
Address:
Charter Capital/Investment:
Core business:
Address:
Charter Capital/Investment:
Core business:
PTSC Production Services Joint Stock Company - (PPS)
Dinh Vu Petroleum Services Port JointStock Company(PTSC Dinh Vu)
Address:
Charter Capital/Investment:
Core business:
PetroVietnam Security Service Corporation (PV Security)
Address:
Charter Capital/Investment:
Core business:
Sao Mai - Ben Dinh Petroleum Investment Joint Stock Company (PVSB)
Phu My I Industrial Zone, Tan Thanh District, Ba Ria -Vung Tau Province
350 billion VND | Holding percentage - 59.61%
Management, operation, trading and exploitation of general port
Nghi Son Commune, Tinh Gia District, Thanh Hoa Province
400 billion VND | Holding percentage - 54.69%
Management, operation, trading and exploitation of general port; Fabrication, assembly, repair and maintenance of oil & gas and industrial facilities; Technical inspection of occupational safety; Providing diving, surveying and construction services for underwater works; Recycling scrap (Demolition of ships); Construction of waterways (waterways, ports and structures on rivers.)
16th floor, No. 9-11, Hoang Dieu Street, Ward 1, Vung Tau City, Ba Ria-Vung Tau Province
200 billion VND | Holding percentage - 51%
Management, exploitation, operation and maintenance of FPSO/FSO; Provision of manpower supply services for oil and gas industry
Dinh Vu Industrial Zone, Dong Hai II Ward, Hai An District, Hai Phong City
400 billion VND | Holding percentage - 51%
Management, operation, trading and exploitation of general & container port
Address:
Charter Capital/Investment:
Core business:
G3 floor, B4 Kim Lien Building, Pham Ngoc Thach Street, Dong Da District, Hanoi
30 billion VND | Holding percentage - 51%
Provision of security services
Address:
Charter Capital/Investment:
Core business:
No. 65A, 30/4 Street, Thang Nhat Ward, Vung Tau City, Ba Ria-Vung Tau Province
500 billion VND | Holding percentage - 51%
Management, operation, trading and exploitation of general port
Vietnam Offshore Floating Terminal (VOFT)
PTSC South East Asia Joint – Venture Company (SEA)
Address:
Charter Capital/Investment:
Core business:
Address:
Charter Capital/Investment:
Core business:
BO1-D-10-1 Level 10, Menara 2, Boutique Office 1 (Pillar 11), KL Eco City, No. 3 Jalan Bangsar, 59200 Kuala Lumpur, Malaysia
14,640,000 USD | Holding percentage - 60%
Investment and provision of Floating Production Storage Offloading vessels (FPSO)
600 North Bridge Road, #23-01 Parkview Square, Singapore
32,000,000 USD | Holding percentage - 51%
Investment and provision of Floating Storage Offloading vessels (FSO)
PTSC Asia Pacific Join – Venture Company (AP)
Malaysia Vietnam Offshore Terminal (MVOT)
Address:
Charter Capital/Investment:
Core business:
600 North Bridge Road, #23-01 Parkview Square, Singapore
60,000,000 USD | Holding percentage - 51%
Investment and provision of Floating Storage Offloading vessels (FSO)
RongDoi Joint Venture Company (MV12)
Address:
Charter Capital/Investment:
Core business:
BO1-D-10-1 Level 10, Menara 2, Boutique Office 1 (Pillar 11), KL Eco City, No. 3 Jalan Bangsar, 59200 Kuala Lumpur, Malaysia
35,222,268 USD | Holding percentage - 49%
Investment and provision of Floating Storage Offloading vessels (FSO)
Petrovietnam Marine Shipyard Joint Stock Company (PV Shipyard)
Address:
Charter Capital/Investment:
Core business:
Address:
Charter Capital/Investment:
Core business:
No.12, International Business Park, Unit 2-06/7 The Strategy Tower, Singapore
20,000 USD | Holding percentage - 33%
Investment and provision of Floating Storage Offloading vessels (FSO)
65A2, 30/4 Road, Thang Nhat Ward , Vung Tau City, Ba Ria-Vung Tau Province
595 billion VND | Holding percentage - 28.75%
Fabrication, repairing, conversion oil and gas exploration, vessels, floatting unit
PTSC currently owns and manages a oil and gas service fleet of 21 vessels of varied in capacities and types such as tug boats, anchors and transporters, dynamic positioning vessels (DP), survey diving support vessels, fire-fighting vessels, standby rescue/field support vessels,... The fleet is fully operated by Vietnamese qualified and experienced crew members. PTSC fleet details are as follows:
PTSC Sao Vàng
6,500 BHP
PTSC Crescent
7,000 BHP
Phong Nha (AHTS DP1)
5,300 BHP
BInh An (AHTS)
8,900 BHP
CAPACITY
CAPACITY
CAPACITY
CAPACITY
PTSC Vũng Tàu (AHTS DP1)
7,080 BHP
PTSC Hai Phong (AHTS DP1)
5,220 BHP
PTSC Thai Binh (AHTS DP2)
8,080 BHP
PTSC Thang Long (AHTS DP2)
7,200 BHP
PTSC Tien Phong (AHTS)
7,080 BHP
CAPACITY
CAPACITY
CAPACITY
CAPACITY
CAPACITY
PTSC Sài Gòn (AHTS DP2)
5,150 BHP
PTSC Hải An (AHTS DP1)
5,150 BHP
CAPACITY
CAPACITY
PTSC Ngàn năm TLHN – 02 (Utility towing)
3,500 BHP
CAPACITY
PTSC Ngàn năm TLHN – 03 (Utility towing)
4,750 BHP
PTSC 04 (Utility towing)
2,140 BHP
PTSC 05 (Tug)
3,200 BHP
PTSC 06 (Tug)
3,200 BHP
PTSC 07 (Tug)
1,600 BHP
PTSC 08 (Tug)
800 BHP
PTSC 09 (Tug)
5,000 BHP
CAPACITY
CAPACITY
CAPACITY
CAPACITY
PTSC 10 (Tug)
2,700 BHP
PTSC 11 (Tug)
1,600 BHP
PTSC 12 (Service boat)
1,430 BHP
• AHTS: Versatile service vessels
• Utility towing, Tug: Towing vessels
• DP1: With dynamic positioning system DP1
CAPACITY
CAPACITY
CAPACITY
CAPACITY
CAPACITY
CAPACITY
• DP2: With dynamic positioning system DP2
(FSO/ FPSO/ MOPU/ MOPSU/ FSRU/ FPU...)
FSO/FPSO supplying is one of the strategic services that are stable and long-term due to its attachment to oil field operating activities. Currently, PTSC owns/co-owns 06 FSOs/FPSOs supplied for clients operating in domestic and international fields, as followings:
FSO Orkid
PM3 CAA OPERATING FIELD
745,000 Unit: Barrel CAPACITY
FPSO PTSC Lam Son
Thang Long – Dong Do OPERATING FIELD
350,000 Unit: Barrel CAPACITY
FPSO Ruby II
Hong Ngoc OPERATING FIELD
645,000 Unit: Barrel CAPACITY
FSO Golden Star
Sao Vang – Dai Nguyet OPERATING FIELD
777,695 Unit: Barrel CAPACITY
FSO PTSC Bien Dong 01
Hai Thach & Moc Tinh OPERATING FIELD
350,000 Unit: Barrel
CAPACITY
FSO Rồng Đôi MV12
Rong Doi
300,000 Unit: Barrel CAPACITY OPERATING FIELD
Currently, PTSC is managing, operating and continuing to invest in expanding the system of 08 ports and supply bases in the NorthCentral - South of Vietnam with a total area of 360ha and over 3,100 m of wharf, serving clients operating in oil and gas exploration in Vietnam as well as other economic sectors in the locality
No. 65A, Street 30/4, Thang Nhat Ward, Vung Tau City, Ba Ria - Vung Tau Province
Area: 82.2 ha
Numberof wharf: 09
Total length of wharf: 753.7m
Capacity:
+ Vessel: 10,000 DWT
+ Barge: 10,000 DWT
Hydroelectric depth: -6.5m to -9m
Hon La Port
Quang Dong Ward, Quang Trach District, Quang Binh Province
Area: 10.3 ha
Number of wharf: 01
Length of wharf: 215m
Capacity: 29,500 DWT
Hydroelectric depth: -8.5m
ADDRESS
SCALE
Yet Kieu Street, Tho Quang Ward, Son Tra District, Da Nang City
Area: 7.5 ha
Number of wharf: 01
Length of wharf: 200m
Capacity: 10,000 DWT
Hydroelectric depth: -9.5m
ADDRESS
SCALE
Binh Son District Quang Ngai Province
Area: 14.5 ha
Number of wharf: 02
ADDRESS
SCALE
ADDRESS
SCALE
+ Wharf number 1: length 281m, capacity 70,000 DWT, Hydroelectric depth -11m
+ Wharf number 3: length 160m, capacity 3,000 DWT, Hydroelectric depth -4.2m.
+ Wharf for towing and oil and gas vessels: length 70m, capacity 3,000 DWT, Hydroelectric depth -7.0m
No. 3 Road, Phu My Industrial Zone, Tan Thanh District, Ba Ria - Vung Tau Province
Area: 26.5 ha
Number of wharf: 04
+ Wharf number 1: length 384.3 m, capacity
80,000 DWT, Hydroelectric depth -14.5m.
+ Wharf number 2: length 130m, capacity
2,500 DWT, Hydroelectric depth -4.8m.
+ Wharf number 3: length 130m, capacity
1,500 DWT, Hydroelectric depth -2.7m.
+ Wharf number 4: length 60m, capacity
2,500 DWT, Hydroelectric depth -4.8m.
Nghi Son Ward, Tinh Gia District, Thanh Hoa Province
Area: 43.9ha
Number of wharf: 02
+ Wharf number 1: length 165m, (reduced) capacity 30,000 DWT, Hydroelectric depth -9.5m.
+ Wharf number 2: length 225m, capacity 70,000 DWT (reduced), Hydroelectric depth -12m.
ADDRESS
Nghi Son Ward, Tinh Gia District, Thanh Hoa Province
Area: 15.28 ha
Number of wharf: 01
Length of wharf: 330m
Capacity: 20,000 DWT
Hydroelectric depth: -8.0m
ADDRESS
SCALE
No. 65A3, 30/4 Road, Thang Nhat Ward, Vung Tau City, Ba Ria - Vung Tau Province
Area: 113 ha
ADDRESS
SCALE
Mechanical engineering, construction and installation of offshore projects is one of the important services that makes a major contribution to the revenue and profit of PTSC. In order to implement the projects, PTSC owns oil and gas projects construction site in Vung Tau, Quang Ngai and Thanh Hoa with facilities, ports, warehouses and crane equipment, towing/lifting equipment and other equipment and facilities ... always meet the client’s requirements:
Major construction site in Vung Tau covers nearly 160 hectares. In addition, PTSC also has fabrication yards in Quang Ngai and Thanh Hoa with area of over 40 hectares.
The wharf system in Vung Tau, Quang Ngai and Thanh Hoa is capable of meeting the demands for manufacturing and launching oil and gas components. Particularly in Vung Tau, a wharf system is nearly 1,000 meters long with 03 dedicated skid for construction and launching high end oil and gas components (6,000 tons; 15,000 tons and 25,000 tons) with distribution load on open areas over 50 tons/m2.
The system of factories, warehouses and construction sites is invested synchronously and modernly: fitting workshop (150,000m2), covered workshop (22,000m2), cleaning/spraying workshop (8,000m2), paint workshop (3,500m2) ... In particular, in 2023, PTSC invested in 6 new paint workshops (nearly 6,800m2) with a maximum height of nearly 45m, equipped with modern equipment with the most advanced technology, ready to serve the industry. Anti-corrosion coating for base components of offshore renewable energy projects.
Series of vehicles, machinery and equipment are used for oil and gas project fabrication such as: cranes of 50 tons -550 tons, 1,200 tons, forklifts, welding machines, generators, air compressors and other specialized equipment.
The investment in facilities for transportation, hook up, installation, maintenance and repair of offshore project can meet basic demand of clients with PTSC services, the major facilities are listed as follows:
Accommodation Barge with 300 occupants PTSC Offshore 01
Non-self propelled barge; length 111.6 m, width 31.7m, depth 7.3m, draught 4.5m, weight of 9,582 tons, and equipped a huge crane with the lifting capacity of 300 tons.
5000 tons barge PTSC 01
FACILITIES/ EQUIPMENT
Mechanical and maintenance workshop
Barge uses for transportation of WHP platforms, jackets, and other components up capacity of 5,000 tons to for offshore constructing, repairing, maintaining and renovation
FACILITIES/ EQUIPMENT
Workshop system in Vung Tau, Quang Ngai, Thanh Hoa province with modern facilities and equipment capable of providing service of repair, maintenance high technical equipment such as gas compressors, generators, valves, heat exchangers, technology tanks of oil and gas projects and onshore industrial projects.
FACILITIES/ EQUIPMENT
Seismic survey service, geological and geophysical survey service, and subsea services using ROV (Remote Operated Vehicle) are high and complex technology services with supply, management and operation of seismic vessels, 2D, 3D, geological survey: supplying and operating of ROV and other specialized survey vehicles:
Binh Minh Geological survey vessel
Vessel with DP1, 61.0 m length, 14.95m width, water level 4.8 m, total capacity 1624 GT; Total main machine capacity 2x22753 = 5506 HP certified by VR-LR registry organization. Equipped with a drilling system for geotechnical investigation offshore projects and and a 4-point winch system.
GeophysiccalSurvey VesselPTSC Researcher
50.3m length, 11.58m width, water level 4.27m, total capacity 798 GT; Total main machine capacity 2x1200 = 2400 HP certified by VR-LR registry organization.
Equipped with a system of geophysical survey equipment including Analogue and high resolution seismic survey.
FACILITIES/ EQUIPMENT
ROV Panther Plus 911 and ROV Panther Plus 954 are used for taking surveys and repairing subsea works. The vehicles can go as deep as 2,000m – 3,000 m underwater.
FACILITIES/ EQUIPMENT
ROV Quasar Compact 007 and ROV II30 is remoted diving equipment used for taking surveys and repairing subsea works. The vehicle can go as deep as 2,000m – 3,000m underwater. ROV II-30 just completed investment in 2021 with 150HP capacity is currently of the most powerful and modern in Vietnam.
FACILITIES/ EQUIPMENT
FACILITIES/ EQUIPMENT
Developing PTSC into an internationally - recognized trusted brand - a leading full - package solution provider in energy sector with focus on offshore oil and gas industry and offshore renewable energy.
Promoting benefits and trusts of investors, clients, partners, and employees, and contributing to socio-community development and environmental protection.
Professionalism is the top criteria that decides the success of PTSC brand.
The trust of investors, clients, partners, and employees creates the strength and competitive advantage for PTSC.
After 50 years of building up and development with outstanding capacity and long track record of achievements, PTSC confidently looks towards the field of offshore renewable energy to contribute to greening energy sources, building a sustainable society and community and building strong facilities and resources with multi - service advantage, affirming stable and sustainable growth in the value chain of Vietnam Oil and Gas Group.
Being innovative and creative at all times is a typical feature of PTSC brand. With highly-qualified human resources of international standard, PTSC is always willing to actively engage, develop, and expand new services to conquer domestic and international markets.
2021-2025 Phase
2026-2030
Phase and Orientation Towards 2035
Vision for 2045
Ensure sustainable and steady growth, affirming the position as Vietnam’s leading highquality oil and gas technical service provider.
Gradually increase market share in non-oil and gas services and international markets based on PTSC’s unique competitive advantages and leveraging its role as a member of the Vietnam National Oil and Gas Group..
Strengthen cooperation with domestic and foreign partners to enhance competitiveness, develop new service lines, proactively adopt new technologies to capture domestic market share and expand into Southeast Asia and the Middle East.
Establish PTSC as a prestigious international brand, a leading provider of comprehensive solutions in the energy sector, with a focus on offshore oil and gas and renewable energy.
Increase benefits and trust for shareholders, customers, partners, and employees, contributing to the development of society, communities, and environmental protection.
Professionalism is the cornerstone of PTSC’s success. Create trust for shareholders, customers, and partners to enhance PTSC’s strength and competitive advantage . Develop strong infrastructure and resources, multi-service capabilities to ensure stable and sustainable development within the value chain of the Vietnam National Oil and Gas Group.
Embrace innovation and actively integrate into global markets to expand our market shares both domestically and internationally.
Develop PTSC into a strong technical services corporation in the oil and gas, energy, and industrial sectors, with a strong regional and global presence, making substantial contributions to building our country into a modern industrialized nation following the socialist orientation.
Strive to become one of the top 3 Oil & Gas - Energy technical service providers in Southeast Asia.
Taking advantage of unique competitive advantage to grow PTSC into an internationally recognized trusted brand with focus on high-quality oil and gas services as its core and at the same time, extending business coverage to new industries and oversea markets in accordance with the capacity and PTSC’s own strengths, including offshore renewable energy.
Maintaining and stabilizing business activities while developing full services oil and gas technical solutions/ service chain. Taking advantage of tough but recovering oil and gas industry along with utilizing PTSC’s healthy financial capability to increase investment, fortify inner strength and be prepared for upcoming industry’s tailwinds.
Load out Offshore Windfarm Foundations –Hai Long Project
Maintain stable and efficient operations of both PTSC’s service fleet and chartered fleet, with a primary focus on the PTSC’s internal fleet.
Promote investment in the expansion of PTSC’s fleet, aligning with market conditions and financial capabilities to rapidly enhance the scale and quality of PTSC’s fleet; Effectively organize maintenance, repair, and overhaul of the fleet and onboard equipment to ensure the vessels are always in good technical condition and meet customer requirements.
Closely follow key domestic projects, approach and support customers/ investors at early stages to increase the chance of being selected as an EPC/EPCI contractor; Continue to propose to the relevant ministries, inter-ministerial government agencies to promote the issuance of policies and mechanisms to support the domestic oil and gas industry.
Proactively pursue potential markets and sign cooperation agreements with local partners to enhance marketpenetration and service offerings.
Ensure safe and efficient operation of existing FPSOs/FSOs under contract, ensuring continuous operation and full compliance with customer requirements.
Strengthen marketing efforts, approach new customers, particularly by closely monitoring new field development progress; Actively work with stakeholders, prepare resources to participate in the implementation of FPSO/FSO provision projects.
Organize safe and efficient operations, continue to promote the strengths of services at the Vung Tau Downstream Port, Phu My General Petroleum Service Port, Wharves 1, 2 of Dung Quat Port, Hon La Port, PTSC Dinh Vu Port, Nghi Son Port, Son Tra Port; Research, expand, and develop the capacity of logistics services and other supporting services associated with port bases, contributing to diversifying and increasing the proportion of revenue from this service line.
Conduct a study on the layout of warehouses and wharves, invest in suitable equipment, enhance marketing of the port’s capacity to handle vessels up to 20,000 DWT at PTSC Downstream Port, offering 3-5 hectare cargo storage yards, transportation vehicles, and heavy cranes to potential customers for transshipment of goods, equipment, and modules from overseas to Vietnam prior to installation.
Scientifically reorganize the layout of Vung Tau Downstream Port complex to facilitate the simultaneous implementation of large-scale projects within and outside the oil and gas sector, particularly, offshore wind power projects, and maximize the utilization of existing facilities and equipment to efficiently implement projects and provide services to clients.
Leverage all available resources to effectively carry out a wide range of offshore and onshore oil and gas transportation, installation, connection, and commissioning projects; Join forces with foreign contractors to deliver high-quality oil and gas facility, industrial, and underground construction projects; Invest in upgrading equipment and machinery, develop a strong workforce and management capabilities to independently carry out turnkey projects for offshore and onshore oil and gas facilities, including installation, connection, commissioning, conversion, and de-commissioning.
Accelerate the development of human resources, especially key management personnel, to meet the demanding requirements of comprehensive maintenance projects in large-scale oil and gas processing plants; Continue to invest in a synchronized factory system, with the aim of developing high-tech specialized services to gradually capture market share.
Promote digital transformation in operations and maintenance management at PTSC, aiming to integrate various operations and maintenance management applications into a unified solution to enhance management efficiency.
FPSO/ MOPU/ MOPSU/ FSRU/ FPU...)
Maintain and expand market share in domestic survey services; Strengthen marketing efforts for overseas and cross-industry service provision; Take the initiative to seek business opportunities and promptly respond to survey needs of oil and gas companies in Southeast Asia and the Middle East... Conduct research and collaborate with reputable partners to develop innovative survey services, especially those serving renewable energy projects.
Enhance proactivity in service delivery, increase the proportion of self-performed work to reduce costs and improve competitiveness in service bidding, with the ultimate goal of fully self-performing offshore survey services for clients.
Conduct research and closely follow government policies promoting a green, clean, and sustainable energy transition, with a focus on increasing the share of renewable energy, ensuring alignment with the national power master plan.
Strengthen engagement and cooperation with reputable international partners to participate in the supply chain, invest in, and execute offshore wind projects in Vietnam and the region, leveraging the combined strengths of the Vietnam Oil and Gas Group and PTSC’s service chain, maximizing PTSC’s workload in both the investment and operation phases.
Continue to expand the provision of specialized oil and gas vessel services, oilfield services, FSO/FPSO services, and survey services in international markets, particularly targeting areas of overlap between Vietnam, regional countries, the Middle East, and countries with strong relations with Vietnam.
Build and develop a network of local suppliers in overseas markets through joint ventures and partnerships to maximize local content in PTSC’s bids and services, meeting the increasingly stringent localization requirements of host countries.
Establish additional PTSC entities in regional countries based on the scale of PTSC’s services and suitable business opportunities in potential markets.
In 2023, for the first time, Dau Tu Newspaper, in collaboration with Viet Research Joint Stock Company, officially organized the announcement ceremony of the VIE50: Top 50 Most Innovative Enterprises Vietnam 2023, and the VIE10: Top 10 Most Innovative Enterprises Vietnam 2023 in key industries. Among the awardees, PTSC was honored twice in both the VIE50 and VIE10 categories, thanks to its impressive business performance and remarkable efforts in officially entering the renewable energy sector as an investor and project developer.
The companies honored in the Top 500 Best Employers in Vietnam (VBE500) and Top 10 Best Workplaces in Vietnam 2023 (VBW10) in key industries are organizations with outstanding achievements in job creation, employee benefits, and fostering a sustainable work environment, coupled with strong and stable business performance. The program has political and social significance aimed to raise awareness among the community, businesses, and employees about the importance of branding, reputation, and the significance of utilizing, developing human resources, building a corporate culture, and attracting top talent through the ‘Vietnam’s Top Employer’s branding campaign. Joining the ranks of top employers, PTSC is honored to be named one of the Top 10 Best Workplaces in Vietnam 2023 in the Energy, Oil & Gas, and Chemical category. PTSC offered attractive career opportunities, a professional, youthful, dynamic, and creative work environment, as well as opportunities for advancement and competitive benefits, training programs...
PTSC was among the top 40 socially responsible enterprises in the Corporate Social Responsibility (CSR) Awards Program held by the Saigon Times. These companies have made significant contributions to achieving sustainable development and creating a better future for the community.
For over three decades of establishment and development, even during the most challenging times, PTSC has been committed to developing its human resources and supporting the community. PTSC has always prioritized human resource development and made significant contributions to the community. In addition to focusing on improving employee benefits and well-being, PTSC has also actively participated in social welfare programs, especially for disadvantaged groups and impoverished areas across the country.
Over the past two years, PTSC has consistently climbed the ranks of the VNR500, Vietnam’s 500 largest enterprises, moving from 78th in 2021 to 56th in 2022, and entering the Top 50 Vietnam The Best for the first time in 2023. This was a testament to the relentless efforts of the PTSC leadership team and more than 8,000 employees throughout the challenging period following the severe impact of the Covid-19 pandemic on the global economy.
This unbiased assessment highlighted PTSC’s achievements over the past year and reaffirmed its position as a leading player in the domestic oil and gas and industrial sectors, as well as enhancing PTSC’s brand reputation among the business community and international investors. This would serve as a driving force for PTSC to continue growing both in scale and quality, thereby delivering greater benefits and confidence to customers and creating sustainable value for society.
1.
“Completed the offshore installation of Hai Thach PQC Central Processing Platform – Bien Dong Project.”
Background
In 2023, the global macroeconomic environment and international markets continued to face numerous challenges, complex fluctuations, and unpredictable uncertainties due to the prolonged Russia-Ukraine military conflict and more recently, the emergence of the Israel-Hamas conflict in the Middle East. These events negatively impacted cross-border supply chains of goods and services, increasing pressure on global trade and investment. Domestically, amid “dual” challenges both internally and externally, investment in new exploration and production projects and domestic reserve enhancement faced many difficulties and delays. Only by the end of 2023 were there positive signals regarding the implementation of the Block B - O Mon Gas-Power project chain. Sharp fluctuations in fuel prices, raw materials, and transportation costs significantly impacted many of PTSC’s business sectors.
Amid numerous challenges and obstacles, PTSC proactively adopted innovations, seized business opportunities in the energy transition trend, and made significant strides into the offshore renewable energy sector including developing new products, expanding the provision of offshore renewable energy services into overseas markets such as the Middle East, India, Taiwan, Malaysia, Brunei, Indonesia, and Thailand, helping to offset the continuous decline in traditional business volumes and achieving a remarkable milestone of $1.5 billion order value in the offshore renewable energy sector. PTSC’s fabrication products have been exported to numerous markets.
After weathering the post-crisis storm and overcoming challenges of work shortage, PTSC has secured long-term contracts, extending until 2027. PTSC’s fabrication products have been exported to numerous markets, and the Corporation witnessed a surge in demand from new clients. This significantly enhanced PTSC’s market position and the PTSC brand is growing stronger day by day.
Consolidated
With consolidated revenue of 21,742 billion VND in 2023, surpassing the 2023 plan by 165% and increasing by 27% compared to 2022, PTSC clearly demonstrated its ability to seize business opportunities in the energy transition trend to develop new products, participate in various projects, expand the provision of offshore renewable energy services and penetrate overseas markets. Business development and service activities yielded positive results, with numerous significant contracts signed and implemented. After years of absence, PTSC has officially re-entered the “VND 20 trillion arena”.
A. Consolidated targets
B. Targets for parent company
The recent period has been marked by significant challenges and uncertainties in the global political, macroeconomic, and market environment. These complexities disrupted cross-border supply chains and placed immense strain on global trade and investment. The volume of work and projects related to PTSC’s domestic operations continued to be scarce. The combination of low service prices, intense competition, delays in new exploration and production projects, and the slow progress of the Block B O Mon Gas-Power Project until the end of 2023 significantly impacted PTSC’s business operations.
Faced with these challenges, PTSC’s leadership and employees have implemented decisive management measures and undertaken strong restructuring to boost business development, improve operational efficiency, and taken strict cost-control measures. These efforts enabled PTSC to effectively respond to market fluctuations and maintain safe, efficient, and stable operations. Notably, PTSC has made vigorous efforts to innovate and find new directions and opportunities amid the global green energy transition, particularly as traditional services face growing challenge. PTSC actively engaged with numerous potential partners and clients in the offshore renewable energy sector, leading to the signing of multiple Memoranda of Understanding (MOUs) and Cooperation Agreements to facilitate investment, development and seeking financial solutions for offshore renewable energy projects. To date, PTSC has completed the necessary legal framework and become the only entity within Vietnam National Oil and Gas Group authorized to invest in the offshore renewable energy sector. PTSC is currently working with foreign partners to vigorously develop offshore renewable energy projects serving both domestic and export markets.
The 2023 performance results reflected PTSC’s successful adaptation to industry trends and its ability to capitalize on new opportunities. The consolidated revenue in 2023 reached VND 21,742 billion, up 27% year-on-year and up 47% from 2021. Consolidated profit before tax in 2023 reached VND 1,277 billion, the same as in 2022 and up 32% from 2021. Revenue from the parent company - PTSC reached VND 11,334 billion in 2023, up 65% year-on-year and up 71% compared to 2021; Profit before tax from the parent company - PTSC reached VND 1,287 billion, up 42% compared to 2022 and 2021.
Total consolidated revenue in 2023
21,742
VND
Increasing by 27% compared to 2022 and 47% compared to 2021
Consolidated Profit before tax in 2023
1,277
VND
The same as in 2022 and up 32% from 2021
Revenue from the parent companyPTSC in 2023
11,334
VND
Up 65% year-on-year and up 71% compared to 2021
Profit before tax from the parent companyPTSC in 2023
1,287
VND
Up 42% compared to 2022 and 2021
In 2023, PTSC continued to implement strict management measures, tighten cost control and reduce costs in production and business operations, has aggressively promoted restructuring to improve the efficiency of the operating model of vessel fleets, made changes and proactively seized business opportunities in the energy transition to develop new services, strengthen commercial and market solutions to increase operating time of PTSC’s fleet. Accordingly, PTSC has actively expanded market development overseas and deployed service vessels to foreign markets such as the UAE, Taiwan, Malaysia, and other countries...maintained the operations of vessels serving wind power projects and closely followed domestic traditional projects to enhance operational efficiency.
PTSC effectively provided service vessels for oil spill, security, firefighting, safety and towage for Dung Quat Refinery and Nghi Son Refinery to meet clients’ various demands.
FSO/FPSO lease service was well provided by PTSC, meeting the clients’ requirements (FPSO PTSC Lam Son for Block 01/97 & 02/97, FPSO Ruby II Block 01/17 & 02/17, FSO PTSC Bien Dong 1 for Moc Tinh Hai Thach Field, FSO Orkid for PM3-CAA Malaysia, FSO Rong Doi MV12 for Rong Doi - Rong Doi Tay Field, FSO Golden Star for Sao Vang Dai Nguyet Field, etc.). In particular, PTSC was in charge of all O&M work on some projects. Vessel’s uptime rate reached nearly 100%, higher than required by contracts. Maintaining the provision, management and operation of the floating refrigerated LPG storage vessel Viet Dragon 68 met the client’s requirements. In April 2023, after providing O&M services for the FPSO Lewek Emas, PTSC was awarded a $300,000 bonus by POVO/HE in recognition of its exceeding O&M KPIs. This demonstrated the client’s high level of trust and appreciation for PTSC’s floating storage and offloading operations.
For manpower services, PTSC continued to provide personnel for MODEC (FSO MV12), MVOT (FSO Orkid), Cuu Long JOC (FPSO Thai BinhVN), and POVO (FPSO Lewek Emas), ensuring safe and efficient operations.
In particular, revenue from offshore facilities, industrial plants and renewable energy mechanical services was VND 5,267 billion, VND 1,997 billion and VND 4,288 billion respectively.
Offshore facilities: Throughout the year, PTSC successfully completed and delivered large-scale oil and gas mechanical projects to the clients, including Gallaf 3 - EPCI6, Shwe Phase 3 Jacket, and DBN PWM. At the same time, PTSC continued to effectively execute the work packages of the Gallaf 3 - EPCI5 project. In addition, PTSC actively participated in bidding for potential contracts both domestically and internationally, and was awarded numerous contracts. In particular, in Q4 2023, PTSC was awarded EPC Contract #1 – engineering, procurement and construction of the central processing facility and living quarters platform for the Block B Field Development Project, as well as EPCI Contract #2 – engineering, procurement, construction, and installation of the production platform/wellhead platform and subsea pipeline system for the Block B Gas Project.
Industrial plants: PTSC successfully organized and completed the major components of several projects of petroleum pipeline from Nghi Sơn Petrochemical Refinery to Anh Phat Depot, the Southern Petrochemical Complex project - A1 Package, and the Vung Ro Petroleum Depot Expansion Project. These projects are currently undergoing acceptance testing for handover to clients in 2024. Additionally, PTSC continued safe and effective implementation and ensured the quality and timeliness at LNG Thi Vai project.
Renewable energy mechanical services: PTSC successfully completed various work items of the Hai Long OSS Project. In particular, on May 19, 2023, PTSC signed a contract for the procurement, fabrication and delivery of 33 wind turbine foundations for the 920 MW Greater Changhua 2b&4 offshore wind project in Taiwan (Each foundation is approximately 85 meters in height and weighs around 2,300 tons).
Throughout 2023, PTSC successfully maintained operations at Vung Tau Downstream Port and actively expanded its service offerings to non-oil and gas sectors and beyond local areas. These efforts resulted in increased revenue and improved operational efficiency, leading to significant growth compared to the previous year.
PTSC’s operations at multi-purpose and container ports faced numerous challenges due to a significant decline in cargo volume at domestic ports, resulting in reduced workloads and increased price competition for services. PTSC’s port bases made efforts to offset the decline in traditional cargo by seeking and developing new cargo sources. Business performance at Dinh Vu Port improved compared to the previous year, although it remained below the levels seen during previous favorable periods. While Hon La and Nghi Son ports showed steady operations, Phu My Oil & Gas Services Port, Wharf 1 of Dung Quat Port still struggled and experienced a continued downturn compared to the previous year.
TRANSPORTATION, INSTALLATION, OPERATION AND MAINTENANCE OF OFFSHORE FACILITIES
1,997
PTSC successfully completed the TGT New Flowline Project - Fabrication and installation of spools and flowlines at the H1 wellhead platform, and delivered the project to the client on January 31, 2023. Throughout the year, PTSC focused its resources on several key projects including Offshore Brownfield GLF3 CPP phase A1, Offshore Brownfield GLF3 CPP phase A2, FLET fabrication project, PLR (Pipeline Launch Ramp) fabrication project, and provision of submarine cable for the Dai Hung 3 Project.
PTSC’s barge operations in 2023 witnessed a significant increase compared to the previous year. This achievement was a testament to PTSC’s substantial efforts in seeking and developing overseas markets for these assets in 2023.
In addition, PTSC continued to provide safe and efficient maintenance services, as well as long-term and short-term manpower for oil and gas projects and clients.
In 2023, PTSC successfully completed a diverse range of projects for geophysical, geotechnical, and underwater survey and repair using ROVs, including the surveys in Block 09-1 and location DS-1X, the survey for the construction of the Bataan-Cavite Interlink bridge offshore the Philippines, UWILD survey projects, and the inspection and repair of the PM3-Ca Mau pipeline suspension points.... The operation of survey vessels/ equipment showed significant improvement compared to the previous year.
PTSC continued to carry out the necessary procedures to complete the dissolution of the PTSC CGGV Joint Venture.
PTSC has actively visited and worked with many potential partners and customers in the area of offshore renewable energy and signed Memorandum of Understanding, Cooperation Agreement in investment and development as well as sought financial solutions for offshore renewable energy projects. To date, PTSC has completed the legal framework and become the sole entity within Vietnam National Oil and Gas Group authorized to invest in the offshore renewable energy sector; the Corporation is actively collaborating with international partners to implement offshore renewable energy projects, serving both domestic and export demands.
PTSC has also actively participated in various conferences, exhibitions, and meetings with potential partners and clients to continuously explore and develop new markets, as well as establish a supply chain for offshore wind projects in Vietnam and the region.
Investments made by Parent Company - PTSC
The Parent Company - PTSC successfully carried out several major investment projects as part of its 2023 investment plan, including completion of Phase III of the wharf at Vung Tau Downstream Port, dredging work in front of the Son Tra Port, and construction of a new warehouse for PTSC Quang Binh, completion of Wharf 3 of Dung Quat Port and the project office building on schedule..., completion of investment procedures for forklifts serving port operations, equipment for offshore renewable energy and oil & gas projects, upgrading of the Company’s IT system and other investment procedures for service vessels.
The Parent Company - PTSC disbursed VND 416 billion in 2023, or 22,6% of the annual plan. Despite missing the annual investment plan, PTSC made significant breakthroughs, achieving far greater results compared to recent years with an increase of nearly 60% YoY, particularly driven by substantial investments serving the implementation of offshore renewable energy projects. Many of these projects have completed investment procedures and are poised for disbursement in the first quarter of 2024.
Investments made by Subsidiaries - PTSC
During the year, PTSC subsidiaries successfully implemented various investment projects. Numerous infrastructure, equipment, and software investments were completed, providing significant support to their production and business operations. In 2023, total investment value at PTSC subsidiaries reached over VND 384 billion, up 67% YoY.
PTSC has achieved higher profitability and improved short-term liquidity, ensuring compliance with PTSC’s financial regulations and industry best practices in financial governance. The low debt ratios, both debt-to-equity and debt-toassets, reflected PTSC’s healthy financial condition. The Corporation’s operations were largely financed by equity, resulting in minimal financial pressure and efficient business operations.
The Corporation’s consolidated total assets, as of December 31, 2023, reached VND 26,416 billion, up 1.9% (VND 492 billion) YoY. In particular, the current assets reached VND 16,290 billion, down 1.1% (VND 180 billion) YoY; Cash and cash equivalents reached VND 5,757 billion, up 10.3% (VND 538 billion) YoY due to timely payments from customers and a shift in the maturity period of term deposits from over 3 months to less than 3 months. Current receivables reached VND 4,058 billion, down 17.1% (VND 862 billion) YoY, primarily due to the Corporation recording lower receivables from the provision of goods and services compared to the payments already received from customers. Non-current assets reached VND 10,126 billion, up 7.1% (VND 672 billion) YoY. The differences in major items are as follows: Fixed assets reached VND 3,391 billion, up 11.3% (VND 343 billion) YoY, due to the recognition of asset growth from investments during the year exceeding the depreciation expenses of fixed assets allocated to production and business costs during the period. Non-current assets in progress reached VND 373 billion, up 117% (VND 201 billion) YoY primarily due to the recognition of construction-in-progress costs that had not yet met the conditions for asset recognition during the period.
The Corporation’s consolidated total liabilities, as of December 31, 2023, reached VND 12,872 billion, up 0.02% (VND 2,5 billion) YoY. In particular, the current liabilities reached VND 9,060 billion, down 1.4% (VND 132 billion) YoY, due to a decrease of VND 1,788 billion, or 33.7% in accounts payable to suppliers as a result of the Corporation’s recognition of lower accounts payable compared to the actual payments made to suppliers based on contractual terms during 2023; Other current payables reached VND 1,233 billion, an increase of VND 1,121 billion YoY; Short-term credit balance (short-term loans) amounted to VND 1,176 billion, up 56.4% (VND 424 billion) YoY. This is primarily due to lower repayment of long-term loans made by the Corporation compared to the disbursement for working capital, investment, and acquisition of new assets. Non-current assets as of December 31, 2023 amounted to VND 3,812 billion, up 3.7% (VND 134 billion) YoY as a result of an increase in the provision for liabilities by VND 212 billion.
01 Maximize PTSC’s strongest resources to develop new products and services to promote value chains based on PTSC’s scale and multi-service advantages within PVN’s link chains. Promote core services with PTSC’s unique competitive advantages to customers outside the industry and abroad. Aggressively participate in bidding, build professional system interconnection solutions, promote trade, and establish joint ventures in line with PTSC’s strengths.
02 Strictly manage investments according to the approved plan, focusing on investment in core activities. Thoroughly review and evaluate market and customer needs, closely follow the situation to ensure efficiency and performance to improve competitiveness. Step up the deployment of planning and infrastructure investment to seize new service opportunities. Focus on final settlement of completed projects on time.
03 Focus on PTSC’s overall restructuring plan in accordance with the situation to ensure PTSC’s sustainable development, eliminate intermediaries, focus on efficiency and right people for the job, create new motivation to develop new products and services at home and abroad.
04
Enhance research, participate in investments in offshore renewable energy projects research and investment in offshore renewable energy projects (wind, tidal, etc.) and engage in the construction and implementation of renewable energy works that align with existing capabilities and experience. Conduct research and collaborate with potential investors to develop a supply chain for offshore wind power projects in Vietnam and the region.
05 Strengthen training activities to improve the quality of human resources to promptly meet demand for high-level development of oil and gas engineering services in as part of PTSC’s development strategy.
06 Strengthen the control and supervision to increase the responsibility of the representatives of PTSC in the subsidiaries, ensuring the effectiveness, sustainability and growth of PTSC’s capital in other companies. Exercise financial supervision over loss-making subsidiaries and take measures to help them overcome their financial difficulties and resume business operations.
07 Accelerate internal control to promote rigorous management practices, reduce service prices by cutting costs, and increase competitiveness.
08 Develop a risk management system, promote scientific research and innovation in production. Upgrade and expand the effective use of state-ofthe-art IT applications in production and business management.
09
Continue to manage outstanding and overdue debts; balance cash flow; ensure solvency in production and business activities.
10 Maintain and develop the adoption of quality, safety and environmental management systems throughout PTSC. Frequently organize safe work practices, fire drills, provide personal protective equipment and work safety. Educate and raise awareness of occupational safety in accordance with the laws and requirements for production.
11
Conduct digital transformation and make investment in ERP system, ensure the consistency and synchronization of PVN’s digital transformation and ERP.
12 Continue the implementation of the social security plan and cost saving practices on an annual basis. Maintain and ensure sustainable development, integrate business activities with national security and sovereignty, and environmental protection.
In 2023, the global situation continued to evolve rapidly and become increasingly complex, marked by fierce competition among powerful countries, prolonged conflicts between Ukraine and Russia, and the conflict between Israel and Hamas in the Gaza Strip. Domestic production and business operations faced numerous challenges, including adverse effects of external markets on many industries and sectors, sluggish credit growth, rising non-performing loans, strugging capital absorption, climate change, natural disasters and disrupted supply chain. Vietnam’s oil and gas industry faced opportunities and challenges in the face of the energy transition towards renewable energy. Investments in exploration and production projects to boost domestic reserves were hindered by numerous challenges, including delays in progress, shortage of local technical services, and intense competition. Amid these challenges, the Board of Directors, in close cooperation with the Board of Management, provided close guidance, organized, and developed plans, and flexibly deployed and implemented business activities, tasks and solutions. They aimed to quickly adapt to constant changes, comply with applicable laws, the Charter, and Internal Regulations on Corporate Governance, and overcome challenges to achieve the objectives set by the General Meeting of Shareholders.
Based on the 2023 Action Plan, the assignments from the General Meeting of Shareholders, and actual results, the Board of Directors evaluated that the organization and implementation of its activities in 2022 were within their authority and in accordance with the Corporation Charter, the Law on Enterprises, and applicable legal regulations. They closely followed the resolutions of the General Meeting of Shareholders, as well as the duties, programs, plans, and activities set forth. Additionally, they ensured the prompt handling of issues under the management and administration of PTSC’s production and business activities.
The Board of Directors successfully held the 2023 Annual General Meeting, regular and extraordinary meetings, meetings for discussion and votes by those on the Board of Directors in accordance with the regulations, the Corporation Charter and the applicable regulations on corporate governance. The Board of Directors fulfilled its role, with the role of the independent and
non-executive members enhanced, thus maximizing the interests of minority shareholders.
The results of the implementation of Resolution No. 308/NQ-PTSCĐHĐCĐ of the General Meeting of May 29, 2023 are as follows:
Completed the 2023 Financial Plan and exceeded the financial targets in the 2023 Business Plan approved by GMS;
The Board of Directors has signed a contract with PwC Vietnam to have 2023 financial statements audited in accordance with current regulations;
Payment of 2022 dividends in cash to shareholders, payment of remunerations and operating expenses to BOD members and Supervisors in accordance with the regulations;
Publication of the results of the election of the members, the independent members of the Board of Directors, approved at the General Meeting in Resolution No. 308/NQ-PTSCĐHĐCĐ dated May 29, 2023 and the results of re-election of the Chairman of the Board of Directors, re-appointment of the President & CEO, Chief Accountant on PTSC’s website, through PTSC’s half-yearly reports, 2023 reports, and 2022 annual reports.
Based on the approval to amended and supplemented business lines at Resolution No. 308/NQ-PTSC-ĐHĐCĐ dated May 29, 2023, the Corporation has completed the registration of amendments and supplements to related business lines and been granted by Ho Chi Minh City Department of Planning and Investment the Certificate of Change in Business Registration in accordance with applicable regulations.
The decisions of the Board of Directors were made in accordance with the rules and business conditions and provided important guidance to assist the Board of Directors in managing, coordinating and facilitating the activities of the organization and associations.
The Board of Directors operates on the principle of collective leadership through the resolutions, decisions and documents of the Board of Directors. The members of the Board of Directors are personally responsible for the tasks assigned to them and are jointly responsible to the GMS and the law for the resolutions and decisions regarding the development of PTSC. The Board of Directors has delegated to the President & CEO the responsibility of organizing and implementing the resolutions and decisions of the Board of Directors.
The Board of Directors held 08 regular and other meetings, 04 inspection and supervision programs for the subsidiaries (POS, PTSC Marine, PV Security and PTSC Quang Ngai) and 68 special meetings for discussions and for taking written votes of the members of the Board of Directors to make resolutions and decisions on matters under the authority of the Board of Directors, namely:
Mr. Phan Thanh Tung
Mr. Le Manh Cuong
Mr. Nguyen Xuan Ngoc
Mr. Do Quoc Hoan
Mr. Tran Ngoc Chuong
Mr. Hoang Xuan Quoc
Independent member of the Board of Directors since May 29, 2023 BOD member Meeting/ opinion taking Participation ratio
As representatives of Vietnam Oil and Gas Group’s capital in PTSC, they did not participate in voting on the 4 items on contracts and transactions with the Group’s related parties
The decisions of the Board of Directors were made in accordance with the regulations, the actual business conditions and the strategic development of the Company, and provided important directions that supported the Board of Directors in managing, coordinating and facilitating the activities of the organizations and associations. The BOD issued a total of 321 documents, including 106 resolutions and decisions and 215 other documents for the management of PTSC’s business affairs.
The members of the Board of Directors fully participated in the training programs organized by the State Securities Commission, the Parent Company - Vietnam Oil and Gas Group and other relevant agencies in accordance with the prescribed composition. In 2023, the members of the Board of Directors, as representatives of the Parent Company - Vietnam Oil and Gas Group in the Company, participated in the training course “Certification for BOD Members integrating Environmental and Social Governance – DCP-ESG” and the quarterly seminar on “Macroeconomics and Monetary Finance” organized by Vietnam Oil and Gas Group.
In 2023, the Board of Directors continued its activities in accordance with the Charter, PTSC’s Internal Governance Regulations, Regulation on the Operation of the Board of Directors. Board of Directors’ meetings were convened and conducted in accordance with the prescribed procedures, and the Board of Supervisors was invited to attend. Meeting materials were fully provided to all the Board members and the Board of Supervisors for reference as required. The meeting agendas covered all topics related to the Company’s operations, in compliance with current regulations, fully discussed and thoroughly evaluated by the Board members to make best decisions and solutions for the Company.
In addition to their shared responsibility for the Board’s activities, the BOD members fulfilled their duties, with the following results:
The Chairman completed directing the implementation of the program, plan and key tasks of the year; successfully directed the organization of the Annual General Meeting of Shareholders 2023 session; directed the organization and chaired meetings, discussions, on-site and online working sessions on key issues, projects, important tasks, as well as matters the Board of Directors deemed necessary, for the collection of written opinions, adoption of resolutions, decisions and other documents of the Board of Directors; directing the enhancement of change and risk management, particularly the impacts of global energy markets, financial market crises, inflation rates, exchange rates, and geopolitical conflicts, in order to develop strategies and solutions for the operation of PTSC and subsidiaries; directing and supervising the BOM on the implementation of resolutions and decisions of the GMS and BOD; directing, supporting and promoting the performance of assigned tasks of BOD members.
The members of the Board of Directors, who are in charge of the production and business divisions and supervise the subsidiaries, fulfilled the responsibilities related to the management and administration of PTSC. They implemented business plans, market development solutions, marketing and technology, and made an important contribution to exceeding PTSC’s overall business plan in 2023.
The full-time members of the Board of Directors have made positive contributions to the process of developing and finalizing the Charter, Internal Rules and Regulations; monitoring and supervising the implementation of and compliance with corporate governance standards; supervising and evaluating the improvement of the management system; transactions and relationships with shareholders, investors and related parties; approving and supervising contracts and transactions with related parties as required.
The members of the Board of Directors and the independent members actively discussed and gave their opinions during the decisionmaking process under their authority, ensuring compliance with applicable regulations; monitoring and supervising the implementation of and compliance with corporate governance standards; supervising and evaluating BOD’s activities in 2023, risk management; approving and supervising contracts and transactions with related parties, related transactions in accordance with regulations.
The Board of Directors highly appreciated and praised the efforts and dedication of the BOM together with the solidarity, determination, dynamism, creativity and sense of responsibility of the President & CEO, the BOM, executives amid complex global situation; slow economic recovery, low growth and high inflation in many countries and regions; crude oil and food prices on the rise; natural disasters and climate change causing severe damage; ongoing Russia-Ukraine conflict along with the growing instability in the Middle East; Despite ongoing recovery efforts, the domestic economy remained burdened by numerous challenges, including unmet growth targets, slow industrial recovery, and difficulties faced by businesses in terms of markets and capital. The Board of Management successfully executed a range of flexible and timely initiatives to drive business growth and introduced new offerings in 2023, in full compliance with the Board of Directors’ directives, met all KPIs and tasks assigned by GMS, achieved positive results as outlined below:
Completed and exceeded the main objectives of the Business Plan 2023 approved by the GMS and the BOD; the revenue from the provision of services abroad in 2023 reached more than 55%, much higher than in previous years, demonstrating PTSC’s great efforts to shift the revenue structure to foreign markets; In particular, the efforts to develop new services, seize business opportunities in the energy transition, and expand service offerings in offshore renewable energy, as well as aggressively pursue foreign markets such as the Middle East, India, Taiwan, Malaysia, Indonesia, and Thailand..., contributing to offseting the continuous decline in traditional business volumes.
Developed and issued the PTSC Green Action Program, building PTSC as a corporate citizen responsible for the environment, community and society; fostered a green corporate culture, demonstrated its commitments in all business activities.
Directed, managed and implemented the decisions of the GMS, BOD properly and drastically, closely monitored market developments, contributing to improving the efficiency of production and business activities; actively developed and proposed plans to cope with existing difficulties faced by the projects and subsidiaries within the authority of the BOD, contributing to minimizing risks and ensuring the rights and interests of PTSC.
Effectively and rationally utilize available resources; drastically cut costs to reduce costs while maintaining stable product and service quality, improve competitiveness, maintain market share, and secure long-term benefits for PTSC.
Accounting and financial management were in accordance with the standards and transparency required by law; the principle of capital preservation and development was ensured, and bad debts were drastically reduced.
Continued to maintain the movement of innovation, upgrading and improvement, improved the management system to enhance the capacity and competitiveness, and effectively applied information technology and science in management and business; implemented the proposed restructuring plan, which confirmed the leading and direct role of the parent company in the business activities of the whole group.
Fulfilled social responsibility by providing secure employment, competitive wages, and implementing social welfare programs.
“Employees and engineers participating in the installation JA&KA Gallaf 3 Jacket Project”
2024 is expected to be a breakthrough year in the implementation of the 5-year plan (2021-2025) for both the Vietnamese economy and the Corporation. Domestic oil and gas industry is expected to have a bright outlook due to sustained high oil prices, upstream projects, and the LNG-to-power transition. The international situation continues to experience rapid, complicated and unpredictable developments. The Board of Directors concludes that the Company needs to address the ongoing challenges posed by the intense competition in the oil and gas technical services, projects, and both domestic and international operations. Climate change and global energy consumption have triggered a global shift. Traditional energy projects continued to lose market share and production and development projects slowed. The oil and gas services sector faced intense competition from private companies which possessed a variety of unique competitive advantages including ownership structure, favorable legal environment, and flexibility in investment decisions. In addition, the development of offshore services was difficult due to the low volume of work and the stricter protection of domestic companies by local governments... In order to complete the business plan in 2024, the BOD would focus on directing the implementation of the following tasks:
01
02
Continue to innovate and improve the efficiency of corporate governance, and strive with high determination to successfully implement the comprehensive goals and tasks of the 2024 Business Plan, thereby contributing to the achievement of the 2021-2025 Five-Year Plan and laying a solid foundation for PTSC’s sustainable development.
Undergo a comprehensive restructure of PTSC in accordance with actual conditions to ensure PTSC’s sustainable development, aiming to reduce intermediary levels, assign the right people to the right tasks with the right income, and create new motivation and energy for developing new products and services both domestically and internationally. Optimize resources, focus on business efficiency, and improve labor productivity.
06
03
Enhance research and investment in offshore renewable energy projects, undertake offshore renewable energy construction projects, develop the capacity to become an important link in the global offshore renewable energy supply chain; Engage in the energy transition to green and clean energy, promote business development, expansion of domestic and foreign markets, non-oil and gas markets, new product development, revenue growth, find more jobs, projects and manage to successfully and efficiently perform work while ensuring compliance with current regulations, constantly improve the management system, lay a solid foundation for the stability and development of the business; properly implement the cooperation and development of prestige and brand.
07
Enhance research and investment in offshore renewable energy projects, undertake offshore renewable energy construction projects, develop the capacity to become an important link in the global offshore renewable energy supply chain; Engage in the energy transition to green and clean energy, promote business development, expansion of domestic and foreign markets, non-oil and gas markets, new product development, revenue growth, find more jobs, projects and manage to successfully and efficiently perform work while ensuring compliance with current regulations, constantly improve the management system, lay a solid foundation for the stability and development of the business; properly implement the cooperation and development of prestige and brand.
Direct and supervise the implementation of the projects, works and activities that have been and will be carried out in order to ensure absolute safety, environmental protection, occupational health and quality, progress and efficiency of the projects and works at the highest level; then successfully and effectively achieve the objectives, tasks, programs, plans and activities established and approved in the Business Plan 2023.
08
04 Properly ensure legal/regulatory compliance, including but not limited to updating, archiving, communication, use, training and application. On that basis, ensure that all PTSC’s tasks and activities properly comply with applicable regulations; coordinate, handle and properly carry out inspections and investigations (if any), audits, supervision and control; properly maintain and resolve economic and civil disputes, complaints, claims and conflicts (if any).
05
Properly conduct financial, accounting, payment and collection activities to ensure a sound, stable and healthy financial position, capital and cash flow; effectively utilize capital resources and maintain and increase PTSC’s capital base.
09
Promote the implementation and use of systems, prepare coordinated solutions, and continuously improve, upgrade, and increase competence and competitiveness; Develop, upgrade, expand and complete the risk management system for business activities and corporate risk management; Drive digital transformation and innovation, leverage information technology, science, engineering, and new technologies and advanced management practices accross all operations.
Duly comply with applicable regulations on benefits, policies, care, remuneration, reward and discipline for employees, rights and interests of shareholders and owners of PTSC. At the same time, coordinate the activities of associations, socio-political organizations, trade unions, youth unions, veterans association, emulation and promotion of activities of the organization.
10
Improve and manage investment activities effectively, proceed with investment only when proven to be efficient, and perform investment-related functions in compliance with applicable regulations.
Tasked with protecting the legitimate interests of shareholders, investors, and PTSC, the Board of Supervisors closely followed and implemented the inspection and supervision plan approved by the General Meeting of Shareholders in 2023, ensuring progress, ethics and compliance with the law.
The Board of Supervisors strictly adhered to its functions and responsibilities as prescribed by the Law on Enterprises and the Corporation Charter, fully implementing the 2023 operating plan as approved by the General Meeting of Shareholders.
The Board of Supervisors conducted continuous and systematic inspections and supervision to promptly grasp the actual situation of the Corporation, subsidiaries/affiliates, thereby helping the Corporation identify and overcome any shortcomings in its management, operation, and internal control systems.
The Board of Supervisors actively participated in all BOD’s meetings to stay informed about PTSC’s business and investment activities, and contributed insights and recommendations to the BOD and the President & CEO within scope of responsibilities and functions. The Auditors worked independently, with the utmost care and high sense of responsibility serving the best interests of shareholders and promoting the growth of PTSC.
In 2023, the Board of Supervisors held 4 in-person meetings. All meetings were of high quality, with all the members attending and unanimously approving all key matters related to the BOS’ activities.
Management, Investment in Fixed Assets and Capital Construction
PTSC’s investments were implemented in accordance with the applicable state regulations and PTSC’s internal regulations. The investment projects on capital construction and procurement of fixed assets were put into use after the handover, management, classification and depreciation of fixed assets in accordance with the regulations of the Ministry of Finance, the operation brought practical economic efficiency through the annual business results of PTSC.
The parent company - PTSC in 2023 disbursed 416 billion VND, or 22.66% of the target. Although it missed the target, the investment presented dramatic growth from previous years, as many offshore renewable energy projects were accelerated and promptly put into use.
As of December 31, 2023, PTSC invested a total of VND 4,793 billion, including VND 3,187 billion in subsidiaries, VND 1,603 billion in joint ventures and associates, and other longterm investments of VND 3 billion. The provision for financial investment was VND 936.27 billion.
Most subsidiaries maintained stable operations and profitability. Joint ventures and associates involved in FSO and FPSO, continued to make significant contributions to PTSC’s overall business performance. Dividends and profits distributed to the Parent Company - PTSC as recorded in 2023 were VND 1,199.67 billion, accounting for 25.03% of the investments:
Dividends and profits distributed from subsidiaries amounted to VND 442.19 billion, equal to 13.88% of the total investment in subsidiaries;
Dividends and profits distributed from joint ventures and associates amounted to VND 757.47 billion, or 47.25% of the total investment in joint ventures and associates;
The restructuring process in 2023 was conducted as follows:
Dissolved PTSC Ca Rong Do Co., Ltd. in accordance with Resolution No.7283/NQ-DKVN dated December 15, 2022 and Resolution No. 43/NQ-PTSC-HĐQT dated January 19, 2023.
Dissolved PTSC Labuan Co., Ltd in accordance with Resolution No. 662/NQ-PTSCHĐQT dated October 16, 2023.
Started paperwork to terminate the joint venture and dissolve PTSC CGGV Geophysical Survey Co., Ltd.
Continued monitoring the market for divestment from Nhon Trach Petroleum Shipbuilding and Repairing JSC, PetroVietnam Marine Shipyard JSC.
On October 13, 2023, PTSC BOD issued the Resolution No. 660/NQ-PTSC-HĐQT approving a cash dividend of 7% for the year 2022. Accordingly, the Corporation completed the dividend payment on November 29, 2023 in compliance with the Resolution of the 2023 Annual General Meeting of Shareholders.
The Board of Directors fully exercised its rights, duties and responsibilities in the management of PTSC and has actively guided, supported and facilitated the BOM, the BOS and the socio-political organizations of PTSC in the performance of their prescribed functions and duties.
In 2023, the BOD held 08 meetings, 04 inspection and supervision programs, 68 polls, issued a total of 321 documents, including 118 resolutions/decisions, to manage the activities of PTSC. The BOD regularly monitored the implementation of the resolutions and decisions issued, supervised the operations of the subsidiaries through regular reports by the representatives and direct meetings with the subsidiaries.
The reports on the Board of Directors fully and accurately reflected the activities of the Board of Directors in directing, supervising, managing and administering all areas of PTSC’s operations as part of General Meeting resolutions, PTSC’s Charter, Enterprise Law, the Securities Law and other relevant legal documents. In particular:
The Board of Directors has performed well in its role of guiding, supervising and supporting the President & CEO and the BOM in the implementation of business plans to achieve business objectives, financial targets and profit distribution according to the resolution of the 2023 Annual General Meeting of Shareholders.
The Board of Directors complied with all applicable laws and regulations governing disclosure on the securities market.
The figures and financial indicators in the reports of the Board of Directors are accurate and comply with the 2023 Annual General Meeting resolution and the 2023 financial statements audited by PwC (Vietnam) Co., Ltd.
Resolutions and decisions of the Board of Directors shall be made properly and in accordance with the law.
The members of the Board of Directors appropriately exercised their rights and responsibilities in accordance with the regulations / well supervised the assigned areas and operations of the subsidiaries.
The President & CEO and other executives of PTSC have always worked hard with a high sense of responsibility: Identified, analyzed, promptly and fully evaluated the challenges and difficulties; acutely, flexibly and closely managed all activities of PTSC; actively sought, expanded and maintained markets, developed new areas; improved the efficiency of all resources, optimized the business and production process; PTSC achieved business results that beat 2023 targets.
The 2022 Business Performance Report provided a complete and fair view of PTSC’s production and business situation and areas of operation, including: Provision, management and operation of FSO/EPSO; Offshore facilities and industrial plants; Port and supply base; Transportation, installation, operation and maintenance of offshore facilities; Seismic, geosurvey and ROV; Offshore renewable energy and other services. The report also fully pointed out the strategy, investment, restructuring, training, etc., and set out the specific objectives and tasks of PTSC in 2024.
The figures and targets in the report are accurate, in accordance with the GMS Resolution No. 308/NQ-DVKT-ĐHĐCĐ dated May 29, 2023, and 2023 financial statements audited by PwC (Vietnam) Co., Ltd.
In 2023, the BOS worked closely with relevant departments to evaluate the financial statements for the fiscal year ended December 31, 2023. Through the evaluation of the financial statements audited by PwC (Vietnam) Co., Ltd, the BOS found that:
The 2023 financial statements were audited in accordance with the provisions of the PTSC Charter and the resolution of the GMS in 2023.
The 2023 financial statements were fully accepted by the auditors were fully accepted by the auditors without any exclusions or exceptions, providing a true and fair view, in all material respects, of the financial position of the Parent Company and the consolidated financial position of PTSC as of December 31, 2023, and of the results of operations and cash flows for the year ended on the same date, in accordance with Vietnamese Enterprise Accounting Standards and System and Regulations on the Preparation and Presentation of Financial Statements.
All the targets for revenue, consolidated profit after tax, and return on equity exceeded the plan approved by the 2023 Annual General Meeting of Shareholders.
PTSC has successfully maintained and developed its equity, taken all the measures to protect capital tied to business operations: Strict compliance with regulations on capital management, asset management, profit distribution, financial management, and accounting; full compliance with property insurance requirements; adequate provisions for inventory write-downs, doubtful accounts, impairment of financial assets, and product warranties as required by regulations.
All the assets of the parent company were managed in strict compliance with state regulations and PTSC’s internal policies. Assets were subject to regular audits and depreciation calculation according to regulations. Receivables and payables were closely monitored and reconciled.
The BOS approved the audited standalone and consolidated financial statements for the fiscal year ending December 31, 2023.
Review of the Coordination between the BOS with the BOD, BOM and Shareholders
The BOS worked with the BOD and the President & CEO on the principle of ensuring the legitimate interests of PTSC and its shareholders in accordance with the PTSC Charter and legal regulations.
The BOS has closely cooperated with the BOD and the President & CEO in the performance of its functions and duties. The BOD and the President & CEO supported the BOS in the fulfillment of its duties, fully provided information and materials related to the activities of PTSC. The BOS was invited to fully participate in the meetings of the BOD, the meetings of the Company and other meetings.
In 2023, the BOS has not received any request, complaint or claim from any individual shareholder or group of shareholders holding 5% or more of the ordinary shares in PTSC.
The 2024 action plan of the BOS will focus on the following activities:
Inspect and supervise the implementation of and compliance with the PTSC Charter, the Law on Enterprises and the state laws; the implementation of and compliance with the regulations, resolutions, decisions and directives of the GMS and the BOD; 01
Review/supervise the implementation of business restructuring and innovation; 07
Develop the 2025 Action Plan of the BOS for submission to the General Meeting for approval and implementation; 02 08
Inspect/supervise and evaluate the implementation of the 2024 Annual GMS resolution; financial situation, capital balance and cash flow management; operational efficiency and debt solvency; capital management and utilization; capital preservation and development; implementation of the quarterly production and business plan; inspection/supervision of the implementation, progress and efficiency of investment projects;
03 09
Examine the rationality, legitimacy, accuracy and prudence of business management; the systematization, uniformity and appropriateness of accounting, statistics and the preparation of financial statements;
Coordinate with the relevant state agencies, inspection teams, internal auditors of major shareholders and PTSC in inspecting and supervising the management and business activities at PTSC, supervise the implementation of the recommendations in the minutes of the inspection and audit teams;
Review, audit and evaluate the effectiveness, compliance with internal audit rules and efficiency of PTSC’s internal control, internal audit, risk management and early warning systems; make recommendations and proposals to improve and enhance the operational performance of the internal control system 04 10
Examine accounting reports, records and other documents of PTSC, the management and operation of PTSC when necessary;
Review contracts and transactions with related people subject to the approval of the Board of Directors or the GMS and make recommendations regarding contracts and transactions requiring the approval of the Board of Directors or the GMS; oversee the companies with respect to the disclosure of information on related people and transactions with related persons; 05 11
Perform reviews of annual, and half-yearly financial statements;
Supervise the year-end evaluation of assets at PTSC;
Perform other duties of the BOS as required by the GMS and applicable regulations. 06 12
PTSC operates in the field of providing oil and gas technical services, primarily employing a large labor force; operating a fleet of service vessels and offshore floating equipment; and operating machinery and lifting equipment. Therefore, there are key environmental impacts to be concerned with, such as:
Material Resource Management
Emissions, including direct greenhouse gas emissions (from fuel combustion) and indirect greenhouse gas emissions (from electricity consumption, subcontracting, etc.);
Domestic wastewater, primarily from workers’ living activities, and a small portion coming from industrial processes such as workshop cleaning;
Domestic and industrial solid waste and hazardous waste, generated from daily production activities.
Due to specific nature of the industry, PTSC primarily uses semi-finished iron and steel products, materials, and industrial gases (such as oxygen, acetylene, and argon) for its mechanical manufacturing processes. To optimize usage of raw materials, as well as to control and minimize environmental impacts, PTSC has taken the following key measures:
Applying the Quality Environmental Health Safety Management System in accordance with international standards (ISO9001:2015 – Quality Management System; ISO14001:2015 – Environmental Management System; ISO45001:2018 – Occupational Health and Safety Management System);
Applying technical standards to optimize the consumption of raw materials, fuel, and maintenance supplies...ensuring efficient use and emission reductions.
In 2023, PTSC recorded savings and prevention of material waste amounting to VND 13.53 billion, reaching 65% of the annual plan.
PTSC’s production operations use municipal water supply mainly for employee use and partly for workshop sanitation. All the production facilities have been fully equipped with wastewater treatment systems from the beginning and have been rigorously operated to ensure that the treated wastewater meets environmental standards through regular annual monitoring and measurement.
PTSC uses main energy sources including electricity for daily activities and industrial production, as well as various fuels (gasoline, DO oil) to operate machinery and equipment. Fuel consumption is managed and controlled through a system of technical norms; investing in new technology, upgrading vehicles and production equipment with energy-saving technology, using clean fuels; taking advantage of opportunities to use renewable energy sources (such as rooftop solar power at production facilities); applying an energy efficiency management system for the oil and gas service fleet in accordance with the regulations of the International Maritime Organization (IMO).
In 2023, PTSC recorded fuel and energy savings of 2.570 billion VND (reaching 103% of the annual plan).
By applying the ISO 14001:2015 Environmental Management System, PTSC has fully complied with environmental regulations and effectively managed and controlled environmental impacts. As a result, in 2023, there were no environmental incidents as well as administrative penalties for environmental violations. Furthermore, PTSC is currently implementing the following programs:
Establish the PTSC Green Action Program No. 676/CTr-PTSC dated May 12, 2023 to initially kickstart actions and solutions to reduce greenhouse gas emissions, ultimately achieving carbon neutrality and net-zero emissions. On January 26, 2024, PTSC established a taskforce to develop a sustainable development strategy, thereby accelerating the development of systems, policies, and strategic documents for sustainable development aligned with ESG criteria;
Conduct preliminary assessment of greenhouse gas from direct emissions from 2022 to 2023, setting the year 2024 as a benchmark year for comprehensive data collection and statistics on operational activities to enable the preparation of a complete greenhouse gas inventory report for 2024;
Constantly advocate for a green lifestyle and sustainable consumption among employees: Optimize the consumption of electricity, water, and office supplies; reduce the use of plastic products; Increase the use of eco-friendly products; expand green spaces in the workplace by planting trees (over 2,600 trees of various kinds were planted around the production facility).
Total Workforce and Average Wage
As of December 31, 2022, PTSC had a total of 7,209 employees
The average income for PTSC employees rose to VND 26,800,000 VND/person/ month in 2023, up 2% increase from the previous year.
Classification by Education Level
PTSC has always complied with legal requirements, met customer expectations, and created core value for both the company and the community. PTSC has integrated the following international standards into its HSEQ Management System:
Quality Management System:
9001:2015
Guaranteeing product and service quality, from design to delivery.
14001:2015
Environmental Management System: Controlling negative impacts on the environment and surrounding community.
In 2023, PTSC achieved excellent results in ensuring the health and safety of its workforce, as follows:
No fatal or serious injuries resulting from workplace accidents;
100% of employees participating in regular health check-ups according to current regulations;
Achieving significant safety milestones (zero labor accidents) during the implementation of projects and receiving recognition and commendation from clients, as follows:
Client Orsted recognized the CHW2204 offshore wind turbine foundation fabrication and supply project for achieving 2 million safe working hours;
Idemitsu Gas Production (Vietnam) Co., Ltd commended the activities at Sao Vang Dai Nguyet Field for achieving a remarkable record of “Three Years LTI Free’;
Hai Long Offshore Wind Power recognized the Hai Long project for achieving 2.5 million safe working hours;
Posco International Corporation recognized the SHWE foundation fabrication project for achieving 1.5 million safe working hours;
North Oil Company praised PTSC for contributing 40 million safe working hours to the overall project;
NSRP commended PTSC for its contribution to the completion of the 2023 Turn Around project.
45001:2018
Occupational Health and Safety Management System: Protecting workers’ health, preventing occupational diseases, and ensuring worker safety.
Bearing in mind that business development must go hand in hand with improving working conditions, enhancing quality of life, and ensuring legitimate rights and interests for employees as both the goal and the driving force of sustainable development, PTSC has ensured and maintained employment, wages, income, and other welfare benefits for employees to encourage their dedication to work.
In addition to the rights and benefits for employees in accordance with the Labor Code and Collective Labor Agreement, PTSC has enforced mandatory social insurance contributions for employees to ensure better benefits upon retirement, sickness, or contract termination. Moreover, PTSC has purchased high-quality health insurance packages (PVI care) for employees and their dependents.
PTSC offered a range of benefits to the employees on its anniversary, holidays, and special occasions such as International Women’s Day (March 8th) and Vietnam Women’s Day (October 20th), including allowances, uniforms and midshift meals. Additionally, PTSC also showed its support and encouragement to employees’ children and family members.
Realizing that human capital is the most important asset, PTSC, in addition to investing in equipment, facilities, and technical infrastructure, placed special emphasis on developing its workforce, building a team of experienced engineers with international qualifications who are capable of undertaking both domestic and international projects. Such policies include:
Systemize the management and development of the workforce in accordance with international standards to thoroughly master all service areas and be ready to undertake PTSC’s oil and gas, industrial, and renewable energy projects.
Improve the mechanisms and policies to attract high-quality Vietnamese human resources; Delegate the management of labor costs and payroll funds to departments, project teams, and units related to production, business, and service activities; Use labor productivity, business performance, and management results as a basis for increasing salaries, benefits, while ensuring transparency and fairness in the compensation system.
Implement a comprehensive human resource development strategy adopting a hands-on approach that combines production, service, and training to promote employee growth and adaptability.
Continuously provide new and updated training to enhance professional expertise, skills, and foreign language proficiency to international standards, thereby meeting the demands of the energy transition.
Apply a competitive compensation program for internal lecturers and encourage employees to organize their own internal training sessions to share knowledge, experience, and foster a culture of continuous learning within PTSC.
Cooperate and partner with leading universities in Vietnam to implement human resource development strategies. This collaboration aims to search for, train, and supplement high-quality human resources in line with PTSC’s standards.
In addition to improving benefits and well-being of employees, PTSC actively engaged in social welfare programs, thereby reflecting its corporate social responsibility and contributing to building a positive image of the people in the oil and gas industry in general and PTSC employees in particular.
In 2023, PTSC disbursed a total of
20.1 billion VND to support social welfare programs for local communities, healthcare facilities, and organizations/funds/ associations
Provided a fund for the construction of the Xuan Hong Commune Medical Station in Tho Xuan District, Thanh Hoa Province
5
Provided a fund to support Ho Chi Minh City University of Medicine and Pharmacy to carry out charitable activities, social welfare programs, and health check-ups for local residents
1
Provided a fund of approximately in support to the organizations, funds for carrying out gratitude programs and other humanitarian activities.
14.1
1. Overview of PTSC’s Governance System 118
Introduction to PTSC’s Governance System
Relationship between Parent Company – Subsidiaries and Joint-Venture Companies
Enhancing the Corporate Governance System
BOD’ Role in Managing Risks and Opportunities for PTSC’ Sustainable Growth
For over 50 years of establishment and development, PTSC has always been committed to achieving long-term, sustainable growth through effective corporate governance and a proactive approach to change, creating value for shareholders and customers and contributing positively to the overal development of community and society. PTSC has adopted best practices in corporate governance through the following principles and actions:
Ensure an effective corporate governance framework through a system of internal governance regulations that clearly define the functions of Ownership, Management, Operation, and Supervision, establishing appropriate mechanisms for communication and work performance among the different structures toward PTSC’s sustainable development. The governance framework includes compliance, regular updates, and continuous improvement based on recommended best governance practices;
Exercise the rights and obligations prescribed by the Charter and applicable regulations; Assess the rights and measures to protect and harmonize the interests of shareholders, managers, employees, and community within the scope of PTSC’s operations;
Establish an independent Internal Audit Section to conduct annual audits of PTSC and its subsidiaries, reporting directly without restriction to the Board of Directors;
Issue and implement a robust disclosure policy to ensure timely, accurate, and transparent disclosure of all material information, including conflicts of interest and related party transactions, in compliance with applicable regulations;
Commit to environmental protection and social responsibility in all PTSC’s activities through the PTSC Green Action Program; build and integrate ESG information into PTSC’s overall strategy to survive and thrive in a challenging and constantly changing environment;
Maintain and behold Petrovietnam culture and PTSC culture.
PTSC is committed to studying and adopting best governance practices, integrating Environmental, Social, and Governance (ESG) into corporate governance, while strictly complying with Vietnamese law through the specification of roles and responsibilities between the Board of Directors and the Board of Management in the Charter, the Regulations on Internal Governance of PTSC and the Regulation on the Operation of the BOD, contributing to promoting business operations and ensuring sustainability and succession.
With the goal of focusing and promoting internal resources to optimize resource activities of the entire Corporation, each subsidiary undertakes a core service in the chain of services; PTSC has oriented its coordination policy, especially the policy of prioritizing internal services while ensuring the principle of equality among the subsidiaries, highest level of operational efficiency and competitive advantages.
In recent years, PTSC has not only complied with the corporate governance regulations under Vietnamese law, but also continuously built and applied an advanced management model in the world and the region. In 2023, PTSC has made great efforts to build and perfect the corporate governance system to improve capacity and competitiveness in the technical services, promote the application of information technology, apply digital transformation to the corporate governance system, and approach the best benchmarks in the region, specifically:
Completed the preparation and promulgation of Risk Management Regulations, Information Disclosure Regulations; Updated and revised the Internal Audit Regulations, Domestic Travel Allowance Regulations, and Board of Directors’ Work Assignments; Revised PTSC’s lines of business in accordance with applicable regulations.
Continued to invest in and upgrade solutions, implement software systems to support management activities: ERP System Phase 1; Human Resource Management (HRM); Financial and Accounting Management; E-office System (e-Office); Materials and Assets Management; Electronic Signature and Document Management Software; PTSC Medical Record Management; Electronic Library (eLib); B1 Intelligent Reporting System.
Implemented the corporate restructuring project until 2025 as approved by PetroVietnam to drive growth, focusing on key business areas and participating in the energy transition towards green and cleaner energy, improving efficiency and competitiveness, and sustainable development in accordance with the development strategy approved by PetroVietnam. Promoted coordination between PTSC and its subsidiaries and among the subsidiaries; utilized/ optimized resources in accessing new markets and services, particulary, offshore renewable energy area.
Stabilized the PTSC’s operations, improved the existing rules and regulations to adapt them to the actual situations and standardized them in accordance with the international standards in various areas of management, decentralized the organization of production, business and investment management on the principles of ensuring the promotion of proactivity and creativity in the subsidiaries, and ensured the ability to manage and utilize resources to perform the strategic tasks of PTSC
Improved the organization of internal inspection and control as an important tool in the management and administration of the Parent Company - Subsidiary model of PTSC.
Strengthened, improved and disseminated PTSC’s culture of “Unity, Dynamism, Creativity and Professionalism” to each position and employee, motivating them to maximize their potential.
Developed a method of managing, administering, and organizing production and business at the grassroots level that is appropriate to each type of service, increased the initiative of managers at all levels, and links benefits to individual responsibility and work performance.
Maintained, improved and effectively applied quality management systems in accordance with international standards to production and business activities in order to maximize the impact of these management systems on the production and business performance of PTSC and its subsidiaries.
Reviewed and established a comprehensive system of economic and technical standards throughout PTSC, improved work processes to reduce management costs, and streamlined the management team to be compact and responsive to work requirements.
PTSC has issued the Risk Management Regulations, implemented risk management, and monitored market trends and changes to seek sustainable development opportunities for PTSC through (i) Identifying, developing strategy and policies for risk management (ii) Overseeing the compliance with laws and regulations, as well as environmental, social, and corporate governance standards, (iii) Leading risk management and directing the development of contingency plans, (iv) Providing information on risk management and opportunities to shareholders, investors, customers, and stakeholders to ensure transparency and compliance (v) Managing finances and resources, conducting a thorough evaluation of investments in sustainable, long-term developments.
PTSC’s Board of Directors consists of MEMBERS
PTSC’s Board of Directors
who also serves as President & CEO
Information on PTSC’s Board of Directors, including the number of PVS shares held by PTSC’s members as as detailed in the table below:
Assignment of Responsibilities within the Board of Directors
Title BOD Chairman (starting from May 25, 2018, re-elected from August 6, 2023)
BOD’s member, President & CEO (starting from May 25, 2018, reappointed from June 8, 2023)
Member of the BOD (28/4/2021-bầu lại TV.HĐQT; 08/11/2016-bầu lần đầu)
The number of positions of members of the Board of Directors is determined by Each member of the Board of Directors holds a position in another company
and other securities issued by the Company
Member of the BOD (from May 25, 2018, re-elected on May 29, 2023)
Member of the BOD (from January 4, 2022 to present)
Independent Member of the BOD (from April 28, 2022 to present)
Independent Member of the BOD (from May 29, 2023 to present) 0 0 1 1
Each member of the Board of Directors is assigned specific responsibilities, ensuring a democratic atmosphere and collective intellectual strength; overseeing, monitoring, and driving the BOM’s implementation of decisions made by the General Meeting of Shareholders, the Board of Directors, and higher levels; actively contributing to discussions and providing inputs within their assigned areas, as follows:
BOD Chairman
Exercises and complies with the rights and obligations of the Members and Chairman of the Board of Directors in accordance with the Law on Enterprises, the Corporation Charter, internal regulations and other relevant regulations; successfully completes all tasks assigned by BOD, including overseeing the operations of designated units and departments.
Scope of responsibility: Directly instructs the development and implementation of PTSC’s medium and long-term strategic direction; leads and oversees organizational development, human resource management, organization activities, political and social affairs; issues, amends, and approves the Corporation’s general regulations, policies, and procedures.
BOD’s member,
President & CEO
Exercises the rights and obligations of the Members of the Board of Directors in accordance with the Law on Enterprises, the Corporation Charter, internal regulations and other relevant regulations (in addition to the rights and obligations of the President & CEO); successfully completes all tasks assigned by BOD, including overseeing the operations of designated units.
Scope of responsibility: Exercises functions, duties, and authority of a Member of the BOD and President & CEO, takes charge of the Corporation’s business operations, oil and gas mechanical services, other services, projects, and operations related to FSO, FPSO, MOPU, MOPSU, etc.; O&M of oil and gas and industrial facilities, business development, new services, trade, market, customers, cooperation, joint ventures, partnerships, trade guarantees; brand and corporate culture development, emulation movements, rewards, and disciplines.
Exercises the rights and obligations of the Members of the Board of Directors in accordance with the Law on Enterprises, the Corporation Charter, internal regulations and other relevant regulations; successfully completes all tasks assigned by BOD, including overseeing the operations of designated units.
Scope of responsibility: Oversees offshore oil and gas services, projects and operations, including vessels, FSO, FPSO, MOPU MOPSU, and offshore mechanical engineering within assignment of other members of the BOD; port-related services, projects, and operations; financial services, financial investment, accounting, auditing, asset management, investment, procurement, insurance, and related inspections and audits, shareholders, shares, and investors; cost-saving initiatives, anti-corruption measures; and media relations, statements, public relations, communicaiton channels, corporate newsletters.
Mr. Do Quoc Hoan
Member of the BOD
Exercises the rights and obligations of the Members of the Board of Directors in accordance with the Law on Enterprises, the Corporation Charter, internal regulations and other relevant regulations; successfully completes all tasks assigned by BOD, including overseeing the operations of designated units.
Mr. Tran Ngoc Chuong
Member of the BOD
Exercises the rights and obligations of the Members of the Board of Directors in accordance with the Law on Enterprises, the Corporation Charter, internal regulations and other relevant regulations; successfully complete all tasks assigned by BOD, including overseeing the operations of designated units.
Mr. Hoang Xuan Quoc
Independent Member of the BOD
Scope of responsibility: Marine services, projects, and operations, including vessel services, marine surveys, seismic surveys, subsea engineering, and ROV operations; quality environmental health safety management system; oil and gas security and safety, public security and order, national defense, maritime security, counterterrorism, anti-piracy, and emergency response in compliance with laws, regulations, and internal policies.
Scope of responsibility: Onshore services, projects, and operations; assists the Chairman in directing, managing, and supervising the development and implementation of the Corporation’s strategy; takes charge of corporate restructuring, training, compensation, benefits, social welfare programs, other inspections; oversees representatives at subsidiaries; social –security affairs.
Mr. Doan Minh Man
Independent Member of the BOD
Exercises the rights and obligations of the Independent Members in accordance with the Law on Enterprises, the Corporation Charter, internal regulations and other relevant regulations; successfully completes all tasks assigned by the BOD, including overseeing the operations of designated units.
Scope of responsibility: Performs the functions, duties, and authorities of an Independent Member according to applicable regulations; oversees offshore renewable energy services, projects, and operations; scientific research and development, and innovation initiatives; digital transformation, standardization, inventions and improvements; risk management.
Exercises the rights and obligations of the Independent Members in accordance with the Law on Enterprises, the Corporation Charter, internal regulations and other relevant regulations; successfully completes all tasks assigned by BOD, including overseeing the operations of designated units.
Scope of responsibility: Performs the functions, duties, and authorities of an Independent Member according to applicable regulations; Supports financial-related tasks, including financial investment, accounting, and auditing; monitors contracts with related parties.
Amid integration, Vietnam remains vulnerable to risks due to its transitioning economy, small size, and limited resilience to external shocks. However, since 2020, Vietnam has shown “moderate-to-good” resilience and has been one of the few economies to sustain positive economic growth.
The year 2023 was marked by significant global economic challenges, characterized by persistent geopolitical tensions, rising protectionism, tense competition among great powers, and tightening of monetary policies by central banks worldwide to curb inflation, resulting in adverse effects on economic and social activities... In light of the aforementioned impacts, the oil and gas market has undergone following significant fluctuations:
Demand for oil and gas surged in nearly almost all regions to meet global economic growth.
However, this rising demand was hampered by a global supply shortage caused by sanctions and production cuts from major producing countries. In April 2023, OPEC+ members announced voluntary production cuts of 1.16 million barrels per day until the end of 2023, while the UAE also declared a 144,000 barrels per day cut for the mid-2023 period. Additionally, the oil embargo on Russia has significantly reduced global oil supply, destabilizing the global energy market in general and the oil and gas market in particular.
In the domestic market, crude oil production has steadily declined in recent years due to the absence of major upstream projects. The gas supply also experienced a sharp decline in output, particularly from low-cost sources. Instead, natural gas production was primarily sourced from higher-cost fields such as Thien Ung, Dai Hung, Sao Vang – Dai Nguyet, PM3 – Ca Mau sourced from Malaysia.... However, the oil and gas market experienced growth in 2023 due to investments in new oil and gas projects.
Synchronize the implementation of formulated solutions, focus on optimizing resources, promote services along the value chain based on advantages of scale and multi-service business, and emphasize core services.
Continuously innovate and improve to increase capabilities and competitiveness, as well as consider and develop new services and clients; conduct research and investment and execute onshore projects to complement business activities in addition to ongoing offshore projects;
Maintain the corporate culture throughout PTSC; Improve corporate governance by applying advanced management principles and practices from around the world;
Innovate recruitment, training and employment processes and align employee interests with PTSC’s growth.
A notable change in the investment and bidding legal framework in 2023 was the introduction of a new Bidding Law. Accordingly, second-tier enterprises affiliated with state-owned economic groups, were significantly impacted, both as investors and contractors.
In addition to creating a fair and equitable bidding environment for both domestic and foreign entities, the new Bidding Law has also tightened the regulations on bidding procedures, conditions, and competitive elements. In an increasingly challenging market for traditional oil and gas services, domestic companies would be forced to compete fiercely with their foreign “players” when bidding for contracts.
For investors, the reduced scope and application of the Bidding Law will promote greater adaptability and competitiveness in the market, enabling them to seize more business opportunities. On the other hand, it also means that the Investors would bear greater responsibility for investment activities, procurement, and contractor selection. Once they are no longer subject to the application, companies would be more proactive and flexible. Management at all levels within the company would face increased responsibilities and greater pressure. Therefore, PTSC must develop its own regulations for investment, procurement, and contractor selection to meet the specific requirements of its business operations while ensuring efficiency and compliance with general regulations.
The upstream segment of the oil and gas industry has seen a significant progress in terms of production growth and new field development. Block B-O Mon Gas-Power Project has officially entered the implementation phase. In 2023, the Government issued the Decree No.45/2023/ND-CP detailing the Petroleum Law and other enacted guiding documents. The oil and gas industry continued to advocate for policies that create a favorable legal framework for oil and gas exploration and production, field development, propose the approval of solutions to remove difficulties and challenges in ongoing domestic projects.
Despite this, the legal framework for offshore investment in the oil and gas sector remains inadequate. Additionally, Vietnam currently does not have specific and clear regulations that can create technical barriers to safeguard domestic production and increase the competitiveness of domestic service providers. Foreign contractors are at an advantage to participate in the
provision of oil and gas services in Vietnam, leading to increased competition for domestic counterparts.
In line with the energy transition trend and the commitment to Net-Zero carbon emissions by 2050, the government is gradually implementing its strategy to develop offshore renewable energy, particularly, offshore wind power as a new marine economy. Vietnam Oil and Gas Group is also developing a comprehensive sustainable development strategy until 2045 with a focus on technological innovation and energy transition. After the initial phase, PTSC has deeply involved in the offshore renewable energy market with the aim of becoming a project developer and investor, and has already secured contracts totaling US$1.5 billion in offshore renewable energy. To date, PTSC has been able to successfully implement all the phases of offshore renewable energy development. In 2023, PTSC was granted approval by the Ministry of Natural Resources and Environment to conduct monitoring, survey, and assessment activities of marine resources to serve the projects to export offshore wind power to Singapore. Notably, PTSC has received strong support from the government and relevant ministries for its investment project to export electricity to Singapore in cooperation with Sembcorp Utilities Ltd. The project has been approved by the Energy Market Authority of Singapore (EMA).
Last year, the government promulgated the National Power Development Plan for the period 2021-2030, with a vision to 2050. The government has also outlined a strategy to amend a number of legal sectors and, concurrently, while initiating research, development, and issuance of regulations on renewable energy. The development of mechanisms and policies to encourage domestic enterprises to participate in the development of renewable energy, renewable energy industry, new energy for consumption at home and abroad, development of electrical equipment manufacturing industry, and acceleration of onshore and offshore wind power, including pilot application of power purchase agreements, have been put on the table for discussion. However, at the macro level, the offshore renewable energy development policies have not yet been translated into specific legal documents, or codified into law. Mechanisms for offshore renewable energy development remain incomplete and lack a comprehensive legal framework. Incentive policies to encourage domestic investment in project development have not received adequate attention.
In its production and business activities, PTSC has always ensured compliance with general laws. PTSC has also made necessary adjustments to ensure compliance with new regulations, industry development trends, PTSC’s specific areas of operation and governance requirements.
In addition, PTSC has strengthened controls, established a decentralized management mechanism for investment and procurement, and increased individual and collective accountability. PTSC has also developed and reinforced its internal mechanisms for decentralization, authorization, assignment of tasks, reporting, monitoring, auditing, internal evaluation, and internal control... The internal regulatory system has been developed in a comprehensive, consistent, and rigorous manner, resulting in high efficiency.
Furthermore, PTSC maintains its adherence to all the regulations applicable to public companies, ensuring transparency, accountability and under the scrutiny of shareholders, the board of control and and competent levels (GMS, BOD).
Given the diverse range of services provided in a closed-loop chain across multiple sectors, continuous and diversified investments, procurement of materials and equipment, PTSC has promptly reviewed and revised its procurement and investment regulations and procedures in compliance with the Bidding Law while ensuring competitiveness, transparency, timeliness, and efficiency.
PTSC also continues to focus on reviewing, updating and improving the system of internal management documents to ensure compliance with legal regulations, and to provide a solid legal basis for management and administration: Regulations on risk management, legal and regulatory compliance procedures, payment and prepayment, postproject material management...
In addition, PTSC continues to educate, disseminate in legal regulations, provide training in legal aspects, participate in the formulation of legal policies, actively provide opinions on relevant legal documents, including those related to the draft Decree guiding the Petroleum Law and the draft Bidding Law, the Decree guiding the Bidding Law, the Circulars on the provision and publication of information on the bidding and selection of contractors on the national bidding network and the formulation of laws on renewable energy...
In 2024, PTSC will keep improving the system of internal regulations, restructuring its functional divisions, completing the mechanisms for decentralization, authorization, and assignment. In addition, PTSC will continue to educate and disseminate legal regulations in various ways, participate in the formulation of legal policies, actively contribute opinions on legal documents, and propose policies to facilitate PTSC’s business growth at home and abroad and in non-oil sectors, submitting proposals to competent authorities regarding special mechanisms for oil and gas services.
For the offshore renewable energy sector, PTSC will propose to the Government, relevant authorities in promptly issuing detailed plans as well as amending and supplementing certain applicable legal documents in order to create a favorable legal corridor and environment for companies like PTSC to develop projects, export services, construction works and products in the offshore renewable energy sector in line with the guidelines and policies of the State. Accordingly, the relevant legal documents must be fully developed, not only Law on Renewable Energy, Law of the Sea, but also related legal sectors (Electricity, Oil and Gas, Investment...), technical standards, specialized and professional guidance documents, investment procedures, evaluation, and selection of investors.
In the meantime, PTSC also recommends that while a comprehensive policy framework for offshore renewable energy is still being developed, the Government should introduce temporary measures to enable qualified companies to pilot projects under special arrangements.
Credit risk: arises when a client or partner fail to perform their contractual or debt payment obligations, resulting in financial loss to PTSC.
Interest rate risk: PTSC has mobilized capital from domestic and international credit institutions to meet its investment and business operation needs, therefore, there is an interest rate risk.
Exchange rate risk: PTSC’s customers and suppliers come from different geographical areas and most of them involve foreign elements, so the revenue in foreign currency accounts for a significant proportion and, as a result, there is always an exchange rate risk.
Liquidity risk: PTSC operates in a diverse range of businesses involving significant investments in assets such as floating vessels, service vessels, port facilities, lifting equipment, as well as requiring substantial working capital for services like mechanical manufacturing, thereby creating an inherent liquidity risk.
PTSC has consistently identified financial risks and put forward appropriate mitigation measures, and made continuous improvements year-on-year, specifically:
Regarding credit risk, before participating in a bidding package or implementing any contract, PTSC evaluates the financial position and operation of its customers and partners to ensure the feasibility of contract performance and develop an appropriate credit policy. Periodically, PTSC performs debt reconciliation, assessment of credit history and send letters of confirmation and notices to remind the customers and partners of debt payment. For those with high credit risk, PTSC will require payment guarantee from a reputable credit institution or the parent company.
Regarding interest rate risk, PTSC has mobilized capital from domestic and international capital markets in both domestic and foreign currencies to diversify its capital sources and avoid sudden impacts from one market. In addition, to minimize risks from interest rate fluctuations, PTSC has raised capital, performed derivative transactions to fix interest rates and maintain a reasonable level of fixed and floating interest rate loans.
Regarding exchange rate risk, PTSC has adopted a balanced foreign exchange revenue and expenditure policy as a mitigation measure by matching the contracts signed with customers with the amount payable to suppliers. In addition, PTSC has employed derivative instruments such as currency swaps and forward contracts... to manage foreign currency flows and increase financial returns.
Regarding liquidity risk, PTSC has implemented specific regulations and procedures to maintain tight control over cash flow for each project, work, and contract. Receivables are always collected before payables are due. Long-term assets are financed with long-term capital.
In a world of disruption, globalization and technological breakthroughs, risk management has become more complex and critical than ever. Technology offers new opportunities, but it also creates risks that cannot be overlooked.
PTSC has come to understand that risk management cannot simply be a reactive measure, but must be closely aligned with business strategy. If PTSC limits itself to simply reacting to risks, it may not be able to respond effectively to real-time challenges and could end up incurring unnecessary compliance costs without delivering real effectiveness.
To mitigate risks related to occupational health, safety, environment, and quality, PTSC has developed a comprehensive risk management system (RMS) based on the principle of protecting and enhancing the values aligned with PTSC’s objectives, action plans, and business operations, ensuring balance between costs, benefits and objectives.
In 2023, PTSC issued its Risk Management Policy on February 01, 2023, and Risk Management Regulations on May 16, 2023. PTSC is currently working to further develop a unified Risk Management System across PTSC to achieve its strategic objectives.
In parallel with the development of the Risk Management System, PTSC is implementing a range of solutions, including investments in infrastructure, equipment, human resources, management systems, technological innovation, digitalization, and digital transformation, to enhance its competitiveness in core business areas in compliance with current regulations. PTSC is also pursuing and committed to enhancing its capabilities in the design, fabrication, construction, installation, operation, and maintenance of offshore renewable energy projects.
In the coming period, PTSC is dedicated to pursuing comprehensive risk management to ensure agility and adaptability to unforeseen changes and maintain an appropriate risk level to capitalize on investment opportunities and growth. Risk management measures are regularly monitored and evaluated to ensure their effectiveness, efficiency, and compliance with legal requirements, while achieving business objectives and meeting the expectations of shareholders and stakeholders.
Phan Thanh Tung
Le Manh Cuong
Đo Quoc Hoan
Nguyen Xuan Ngoc
Tran Ngoc Chuong
Hoang Xuan Quoc
Doan Minh Man
Nguyen Tran Toan
Ta Duc Tien
Tran Ho Bac
Nguyen Xuan Cuong
Tran Hoai Nam
Pham Van Hung
Le Cu Tan
Nguyen Van Bao
Bui Thu Ha
Bui Huu Viet Cuong
Pham Van Tien
of the
of the
Independent Member of the BOD
Independent Member of the BOD
Remuneration and other benefits of BOD, BOS, BOM in 2023 comply with Resolution No. 308/NQ-DVKT-DHDCD on May 29th, 2023 and current Regulations.
Details of remuneration and other benefits of BOD, BOS, BOM in 2023 are as follows:
2,159,318,000 2,278,179,000 1,796,554,000 1,747,643,000 1,658,357,000-
1,796,554,000 1,562,947,000 1,747,643,000 1,747,643,000 1,658,357,000 1,444,354,000 122,880,000 1,475,373.000 1,475,373,000 1,183,308,000 1,029,441,000 1,992,259,000 1,842,459,000 1,535,983,000 1,422,290,000 1,274,750,000 300,000,0001,724,436,000 1,524,536,000 1,923,969,000 1,457,590,000 1,328,789,000 374,709,000 1,000,000 1,275,175,700 1,228.129,700 1,021,425,700 979,349,700 4,151,577,000 4,120,638,000 3,332,537,000 3,169,933,000 2,933,107,000 480,000,000 105,000,000 3,520,990,000 3,087,483,000 3,671,612,000 3,205,233,000 2,987,146,000 1,819,063,000 123,880,000 2,750,548,700 2,703,502,700 2,204,733,700 2,008,790,700
180,000,000 105,000,000
24,883,924,000 285,000,000 21,206,850,800 46,375,774,800
1.
The energy transition is progressing vigorously worldwide, with a shift towards renewable energy sources to ensure each country’s energy security and collectively address pressing issues such as climate crisis, aiming at net-zero carbon emissions by 2050, as committed by the Government of Vietnam at COP26.
Based on the similarities in the service chains of oil and gas projects and offshore renewable energy (ORE) projects, PTSC has many advantages that enable it to deeply participate in the supply chain for ORE projects regionally and globally. Since 2022, PTSC has made several strategic changes in its production approach, gradually shifting and expanding its production model from single/oneoff production to mass and lean production—high-volume, highefficiency manufacturing. This represents a completely different closed-loop production process compared to traditional oil and gas projects. In addition, PTSC has strengthened its investment to upgrade equipment and facilities, reorganize and reallocate space, and expand the fabrication yard area at the Vung Tau Downstream Port (currently the largest fabrication yard in the region); organize numerous specialized training programs for the workforce across all member units and subsidiaries; promote and expande strategic
partnership collaborations domestically and internationally; and especially, continue to contribute in coordination with the authorities of Ba Ria – Vung Tau Province to promoting collaboration and investment opportunities towards developing Ba Ria – Vung Tau into a ORE center in Vietnam and the region.
Regarding the operational orientation for 2024 and the coming years, PTSC will focus all its resources on successfully implementing the signed contracts for the Block B Gas Project and ORE projects. This includes conducting surveys for the ORE project to export clean electricity to Singapore with the goal of starting power generation by 2033, contributing to the orientation of the Vietnam Oil and Gas Group and other enterprises in building a “Green Energy Economy” for Vietnam and the region. In collaboration with local authorities, PTSC will strengthen regional linkages to promote the development of the Southern Key Economic Zone. The Corporation continues to accelerate the development of the ORE supply chain, rapidly establish a renewable energy hub in the south in line with the Power Development Master Plan VIII issued by the Government. This effort supports the Government’s goal of achieving net-zero emissions by 2050, as committed by Vietnam at the COP26 Conference.
Develop PTSC into a strong Petroleum Technical Services Corporation, with a well-recognized brand in the region and globally, making significant contributions to the overall development of the oil and gas industry and the national economy, and helping to transform our country into a modern industrialized nation oriented toward socialism.
Increase the benefits and trust of shareholders, customers, partners, and employees, contributing to social development.
Maintain, update, and continuously improve the Health, Safety, Environment, and Quality (HSEQ) Management System in accordance with international standards to achieve the goals related to waste management, emissions reduction, energy conservation, resource utilization, ecological environment conservation, and restoration, while complying with legal requirements, meeting customer and stakeholder expectations, and creating core values for both the Corporation and the community.
goals fundamental to PTSC’s long-term success
• Complying with the law, guidelines, policies and regulations of the State
• Ensuring production and business efficiency.
• Ensuring public, transparent and timely disclosure of information
• Continuously improving corporate governance competence.
• Providing equal treatment and ensuring shareholders’ interests.
• Ensuring jobs, growth in income and good benefits and remuneration policies.
• Recognizing, fairly evaluating employees’ contributions and achievements.
• Professional training to improve competence.
• Working environment and conditions to comply with HSE regulations.
• Fulfilling the obligations and implementing the guidelines and policies of the State; complying with the law.
• Reviewing legal issues; complying with and obtaining safety and environmental permits, ensuring safe and efficient business operations.
• Complying with the policies and regulations of the host countries and the laws of Vietnam
• Updating and improving the internal regulatory system to ensure compliance with legal regulations, creating a solid legal basis for management and administration: Regulations on risk management, legal and regulatory compliance procedures, payment and advance payment, post-project material management...
• Issuing PTSC’s Cultural Code
• Fulfilling statutory tax obligations.
• Good business performance result.
• Tranparent disclosure of information.
• Improvement of management capability and brand name value.
• Guaranteeing to pay dividends, ensuring benefits of investors.
• Competitive salary policy based on competence and work performance; income, remuneration and benefits commensurate with dedication and contributions.
• Regulations on work performance assessment to evaluate the employees.
• Training and developing human resources in preparation for successor workforce
• Ensuring a good working environment; fully implementing the health and safety program for employees.
• Exceeding the targets and the 2023 business plan approved by the General Meeting of Shareholders
• Using the information disclosure system through IDS, CIMS, PTSC website, updating and providing the most complete information on PTSC’s activities
• PTSC has invested in and applied information technology in accordance with the best regional standards to build up and complete the corporate governance system to improve its competitiveness
• Fulfilling the commitments of dividend payment.
• Continuously improving and applying the Regulations on work performance assessment to pay salaries commensurate with competence, work performance, dedication and contribution.
• Implementing practical and highly effective human resource development training programs; promoting intensive trainings to meet global standards.
• Providing regular health check-ups for employees and new arisen cases
• Protecting labor health, preventing occupational diseases and ensuring employee safety.
• Keeping negative environmental impacts in control and protecting the environment and community nearby.
• Ensuring safe operations, service quality, reasonable prices.
• Reliable and advanced technology, operational capacity.
• Cooperation for development.
• Professional HR team
FINANCIAL INSTITUTIONS
• Ensuring transparency in corporate governance system
• Ensuring professional financial management system
COMMUNITY, LOCAL AUTHORITIES
• Carrying out corporate responsibilities to the community and society.
• Investing in Health, Safety and Environmental Quality Management System in accordance with international standards.
• Quality service, competitive price.
• Implementing projects/services safely and timely.
• Maintaining and increasing customers’ trust.
• Good customer service
• Partner and supplier evaluation and selection process is strict, transparent, fair, and compliant with the law
• Contracts are fulfilled, checked, and controlled in accordance with law and regulations.
• Payment is guaranteed.
• Updating and adopting the corporate governance system and professional financial management system.
• Providing the most suitable solutions for customers/partners
• Synchronously applying Health, Safety, and Environmental Quality Management System of PTSC certified in accordance with international standards.
• Promoting development of design and technical capacity to enhance the grey matter value and added value in products and services at competitive prices.
• Carrying out and organizing production plans and solutions to provide services, ensuring safety, quality, and progress.
• Developing true competence, taking advantage of PTSC’s strengths of brand name, resources, management system, experience
• Improving the capacity of marketing and customer service teams.
• Updating, improving, and completing the process of purchasing goods/ services, evaluating and selecting suppliers to ensure in compliace with the law.
• Updating, improving, and implementing partner evaluation. Legal and commercial departments check signed contracts to ensure compliance with the law.
• Closely cooperating, saving input costs
• Successful cooperation relationship for mutual benefits.
• Continuing to invest in and upgrade solutions, implement software systems to support management activities: ERP System Phase 1; Human Resource Management (HRM); Financial and Accounting Management; E-office System (e-Office);
• » Updating Internal Audit Regulations;
• » Updating and issuing Internal Payment Process
• Committed to supporting and contributing to local community.
• Contributing VND 20.1 billion in total to educational, healthcare and social development.
477,966,290
17,780.35
Updated according to the list of shareholders at the last registration date September 25th, 2023 (the latest last registration date)
The amount of shares is based on the List of ordinary shareholders exercising the right to
the last registration date of November 30th, 2022
Vietnam Oil and Gas Group
CTBC Vietnam Equity Fund; DC Developing Markets Strategies Public Limited Company;
KB Vietnam Focus Balanced Fund; Norges Bank;
Samsung Vietnam Securities Master Investment Trust [Equity]
shareholders’
/ The group of foreignshareholders concerned by Ms. Truong Ngoc Phuong is the authorized representative to disclose information
The amount of ordinary shares is based on the List of ordinary shareholders exercising the right to attend and transaction reports received from Corporate representatives and Related person until Decemcber, 25th 2023.
Phan Thanh Tung
Le Manh Cuong
Nguyen Xuan Ngoc
Do Quoc Hoan
Tran Ngoc Chuong
Hoang Xuan Quoc
Doan Minh Man
Bui Thu Ha
Bui Huu Viet Cuong
Pham Van Tien
Ta Duc Tien
Nguyen Tran Toan
Nguyen Xuan Cuong
Tran Ho Bac
Tran Hoai Nam
Pham Van Hung
Nguyen Van Bao
Nguyen Duc Thuy
For 17 years since its IPO in September 2027, PTSC (Stock code: PVS) has consistently strived for professionalism, transparency and efficiency, ensuring a steady dividend payout and earning a reputation as one of the best listed companies. The PVS stock code has attracted the interest of investors thanks to its high liquidity.
In 2023, PTSC was once again honored as one of the listed companies with the best corporate governance. Investor Relations plays a crucial role in building PVS’s brand image and value. PTSC’s Investor Relations philosophy focuses on promoting communication, ensuring information transparency, protecting shareholders’ rights and maintaining equal treatment for all shareholders, in particular by:
In 2023, PTSC held several meetings with Investors in order to provide information and update quarterly activities. PTSC also met with many Investors from leading securities and fund management companies in Vietnam and foreign fund management companies exploring cooperation and investment opportunities. In addition, information on PTSC’s business activities is disclosed to the public accurately, promptly, and in accordance with legal regulations, ensuring Shareholders’ right to access information.
At the 2023 Annual GMS and the 2024 Extraordinary GMS, the Shareholders asked questions directly to the Presidium. The issues raised by Shareholders were answered by the Presidium with transparent and accurate information. All the comments and recommendations of the Shareholders at the meeting were well received and considered for appropriate implementation. In addition, prior to each Annual General Meeting, PTSC organizes an Analyst Meeting to provide investors with updates on the company’s financial and business performance, outlook for the oil and gas and renewable energy markets, as well as PTSC’s strategic direction for the future. Through these events, PTSC’s management has facilitated an open dialogue to share information with investors, enhancing mutual understanding between the two parties.
PTSC always appreciates and understands the importance of transparency in information disclosure. Accordingly, PTSC has applied IT solutions to ensure timely and accurate disclosure of information on PTSC’s website, in full compliance with legal regulations; used the stock market information service. At the same time, PTSC also cooperated with securities companies and mass media to update and provide the most comprehensive and transparent information about PTSC’s activities.
Over the years, PTSC has been consistently awarded and recognized in the list of topperforming listed companies by the State Securities Commission (SSC), Hanoi Stock Exchange (HNX), and the Ministry of Finance.
In an effort to achieve the goal of “Maximum protection of shareholders’ rights, equal treatment between minority and majority of shareholders, between domestic and foreign shareholders, between internal and external shareholders of PTSC”, PTSC’s Investor Relations Department always works with a highest sense of responsibility, meeting the highest requirements, flexibly and promptly processing all requests from shareholders regarding the exercise of Shareholders’ rights such as: registration of ownership, transfer of shares, issuance of additional shares, access to information related to PTSC’s activities, attending and voting at the Annual GMS, granting authority to exercise the rights of Shareholders, receiving dividends from PTSC...
January 03, 2023
January 05, 2023
January 08, 2023
January 19, 2023
January 19, 2023
January 30, 2023
March 23, 2023
March 23, 2023
March 28, 2023
March 28, 2023
April 14, 2023
April 25, 2023
April 25, 2023
April 27, 2023
April 28, 2023
May 04, 2023
Report on ownership change of group of affiliated foreign investors as shareholders/investors holding 5% or more of shares
Announced the Resolution on approving the Engineering, Procurement, Construction, and Commissioning (EPC) Contract for the Thi Vai LPG Storage Tank Project
Published Financial Statements of Parent Company for Q4/2022
Published Consolidated Financial Statements for Q4/2022
Published the Resolution on approving the dissolution of PTSC Ca Rong Do Ltd. Joint Venture Company and termination of offshore Investment project
Published Corporate Governance Report (2022)
Published Audited Financial Statements of Parent Company for 2022
Published Audited Consolidated Financial Statements for 2022
Published Resolution of the 2023 Annual General Meeting of Shareholders
Announced the last date for registration to exercise the right to attend the 2023 Annual General Meeting of Shareholders
PTSC’s regulations on information disclosure
Announced the Meeting agenda and draft documents of the 2023 Annual General Meeting of Shareholders
Published Financial Statements of Parent Company for Q1/2023
Published Consolidated Financial Statements for Q1/2023
Published changes in the ownership structure of a related group of foreign investors as a Major Shareholder holding 5% or more of share
Notice of the 2023 Annual General Meeting of Shareholders
May 09, 2023
May 11, 2023
May 15, 2023
May 19, 2023
May 26, 2023
May 26, 2023
May 30, 2023
June 02, 2023
June 08, 2023
June 08, 2023
June 08, 2023
June 26, 2023
July 28, 2023
July 28, 2023
July 28, 2023
August 08, 2023
Published the Resolution on approving the appendix to the Trademark License Agreement of Vietnam Oil and Gas Group
Report on ownership change of group of affiliated foreign investors as shareholders/investors holding 5% or more of shares
Report on ownership change of group of affiliated foreign investors as shareholders/investors holding 5% or more of shares
Published information on the Execution of a Contract for the fabrication and supply of offshore wind turbine foundations for the CHW2204 Project in Taiwan
Resolution on approving the list of nominees to Members of the Board of Directors and Board of Supervisors
Published updates on the 2023 Annual General Meeting of Shareholders
Published Minutes and Resolutions of the 2023 Annual General Meeting of Shareholders
Published information on the Resolution on approving the Fixed-Term Charter Contract of FSO PTSC Bien Dong 01 for the next period
Published decisions on re-appointment of PTSC’s Chief Accountant
Published decisions on re-appointment of PTSC’s President & CEO
Published Resolution on re-election of the BOD Chairman of PTSC
Announcement of Audit and Review Contract Signing for 2023 Financial Statements
Published Financial Statements of Parent Company for Q2/2023
Published Consolidated Financial Statements for Q2/2023
Published Corporate Governance Report (Reporting period: First half of 2023)
Published Reviewed Financial Statements of Parent Company for the first half of 2023
JAugust 08, 2023
August 15, 2023
October 13, 2023
October 16, 2023
October 16, 2023
October 19, 2023
October 26, 2023
October 27, 2023
October 27, 2023
October 30, 2023
November 07, 2023
December 04, 2023
December 12, 2023
December 14, 2023
January 30, 2024
January 30, 2024
January 30, 2024
Published Reviewed Consolidated Financial Statements the first half of 2023
Announced Decision on Human Resources
Published Resolution on 2022 dividend cash payout
Announced the last date for registration to exercise the right to receive 2022 dividends in cash
Published the Resolution on approving the dissolution of PTSC Labuan Ltd. and termination of offshore investment project
Published Certificate of business registration change
Report on ownership change of group of affiliated foreign investors as shareholders/investors holding 5% or more of shares
Published Financial Statements of Parent Company for Q3/2023
Published Consolidated Financial Statements for Q3/2023
Published Resolution on approving the transaction with the Corporation’s Related Party
Announcement on PTSC’s Human Resoures
Published Resolution on the 2023 Extraordinary General Meeting of Shareholders
Announced the last date for registration to exercise the right to attend the 2023 Extraordinary General Meeting of Shareholders
Published Resolution on approving the transaction with the Corporation’s related party
Published Consolidated Financial Statements for Q4/2023
Published Financial Statements of Parent Company for Q4/2023
Published Corporate Governance Report (Reporting period: 2023)
After a turbulent 2022, the VN-Index witnessed a spectacular recovery in 2023, thanks to the government’s proactive measures to support the economy and the stock market. The VN-Index started at 1,007,09 points in the beginning of 2023 and gradually recovered throughout the year, reaching a peak of 1,243.14 points in early September 2023. Despite a market decline in October, the VN-Index rebounded to 1,129.93 points on December 29, marking a 12.2% increase from the beginning of the year.
On average, global oil prices declined by 17% in 2023 compared to 2022, after reaching an all-time high in March 2022. However, oil prices showed positive signs in the second half of 2023, driven by OPEC+’s efforts to cut production to balance supply and demand, and geopolitical tensions in the Red Sea region also impacted the prices. Since then, the oil prices have gradually recovered with the average price in the second half of 2023 increasing by 6% compared to the first half. The increase in oil prices in the second half of 2023 provided a modest boost to the performance and share prices in the oil and gas sector. In 2023, PVS experienced a 78% increase in share price compared to the beginning of the year.
Oil and gas industry in 2024: Global demand is expected to grow, with many key domestic projects anticipated to accelerate in implementation
The global oil and gas industry outlook for 2024 continues to be strong and stable, supported by high oil prices and growing demand. According to the International Energy Agency (IEA), the U.S. Energy Information Administration (EIA), and OPEC, oil demand growth in 2024 is expected to continue at a rate of 1.4 million barrels per day from the already high base in 2023 (exceeding pre-COVID-19 consumption level). These organizations also gave a forecast that the average price of Brent crude will reach USD 82 per barrel in 2024, maintaining stability compared to 2023, thanks to rising demand and OPEC+’s production cuts. Along with this price level, the countries worldwide will continue to explore and develop new oil and gas projects, driving economic growth. This will create positive prospects for oil and gas technical service providers like PVS.
In Vietnam, following the successful approval of the Lac Da Vang oil field project in 2023, a framework agreement for the Nam Du - U Minh gas field was signed in early 2024. It is highly likely that Vietnam Oil and Gas Group and its international partners will make a final investment decision on several key oil and gas projects, such as the Block B O Mon gas field and the Su Tu Trang - Phase 2B projects, boosting domestic oil and gas production and creating opportunities for upstream oil and gas companies such as PVS, PVD, GAS...
In addition, in line with the trend of green energy transition, offshore renewable energy projects have become increasingly attractive and rapidly developed worldwide. PVS has become a pioneer by participating in offshore wind power projects in Taiwan. Despite some challenges, the global offshore wind industry is still forecast to experience a strong double-digit growth. Therefore, PVS is perfecting its value chain to become a critical link in the global offshore wind industry and aims for a multi-billion-dollar backlog. As an investor in the Offshore Renewable Energy project, PVS secured the Conditional Approval from the Singaporean government in October 2023. In particular, PVS will act as a joint investor and developer in the clean energy export project to Singapore, starting in 2030. PTSC and its partner Sembcorp have outlined a detailed roadmap, from surveying, investment planning, and developing offshore wind farms in Vietnam, to producing and exporting approximately 1.2GW of clean energy from Vietnam to Singapore via a high-voltage submarine cable. As an EPC contractor for Offshore Renewable Energy (ORE) projects, PVS has been actively investing in facilities and infrastructure to leverage its strengths and develop into a new supply chain in Vietnam for large-scale ORE projects in the Asia-Pacific region. PVS has won tenders, executed mechanical works, and provided services for a wide range of offshore wind projects, including those from global ORE giants like Orsted, CIP, Equinor, Elektrownia Wiatrowa Baltica, Swancor Holding Company, Enterprise Energy..., and continued to actively participate in the bidding processs of their projects.
(Sources: Cafef)
1,000,000,000 1,000,000,000 1,738,034,310 1,988,034,310 1,988,034,310 2,978,020.940 2,978,020,940 4,467,004,210 4,467,004,210 4,467,004,210 4,467,004,210
4,467,004,210 4,467,004,210 4,467,004,210 4,467,004,210 4,467,004,210 4,779,662,900 4,779,662,900 4,779,662,900 4,779,662,900 4,779,662,900
140,000,000 100,000,000 86,901,715 397,606,862 298,205,146 595,604,188 297,802,094 223,350,210 536,040,505 536,040,505 536,040,505 223,350,210 223,350,210 223,350,210 223,350,210 312,690,295 334,576,403 477,966,290 477,966,290 382,373,032 334,576,403
6,961,141,283
Financial Statement
No. 0103015198 dated 29 December 2006 initially issued by the Department of Planning and Investment of Ha Noi City and the 10th amendment of the Enterprise registration certificate No. 0100150577 issued by the Department of Planning and Investment of Ho Chi Minh City on 20 February 2019.
Mr. Phan Thanh Tung
Mr. Le Manh Cuong
Mr. Do Quoc Hoan
Mr. Nguyen Xuan Ngoc
Mr. Tran Ngoc Chuong
Mr. Hoang Xuan Quoc
Mr. Doan Minh Man
(from 29 May 2023)
Ms. Bui Thu Ha
Mr. Bui Huu Viet Cuong
Mr. Pham Van Tien
Mr. Le Manh Cuong
Mr. Nguyen Tran Toan
Mr. Ta Duc Tien
Mr. Nguyen Xuan Cuong
Mr. Tran Ho Bac
Mr. Tran Hoai Nam
Mr. Pham Van Hung
Mr. Le Cu Tan
(from 7 November 2023)
Legal representative
Mr. Le Manh Cuong
Registered office
5th Floor, PetroVietnam Tower,
No. 1 - 5 Le Duan Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
Auditor
PwC (Vietnam) Limited
The Board of Management of PetroVietnam Technical Services Corporation (“the parent Company”) is responsible for preparing the consolidated financial statements of the parent Company and its subsidiaries (together, “the Corporation”) which give a true and fair view of the consolidated financial position of the Corporation as at 31 December 2023 and the consolidated results of its operations and its consolidated cash flows for the year then ended. In preparing these consolidated financial statements, the Board of Management is required to:
• Select suitable accounting policies and then apply them consistently;
• Make judgments and estimates that are reasonable and prudent; and
• Prepare the consolidated financial statements on a going concern basis unless it is inappropriate to presume that the Corporation will continue in business..
The Board of Management of the Corporation is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the consolidated financial position of the Corporation and which enable consolidated financial statements to be prepared which comply with the basis of accounting set out in Note 2 to the consolidated financial statements. The Board of Management of the Corporation is also responsible for safeguarding the assets of the Corporation and hence for taking reasonable steps for the prevention and detection of frauds or errors.
We hereby approve the accompanying consolidated financial statements as set out on pages 5 to 91 which give a true and fair view of the consolidated financial position of the Corporation as at 31 December 2023 and the consolidated results of its operations and its consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, the Vietnamese Corporate Accounting System and applicable regulations on preparation and presentation of consolidated financial statements.
On behalf of the Board of Management
Le Manh Cuong Chief Executive Officer (“CEO”)
Ho Chi Minh City, SR Vietnam 12 March 2024
We have audited the accompanying consolidated financial statements of PetroVietnam Technical Services Corporation (“the parent Company”) and its subsidiaries (together, “the Corporation”) which were prepared on 31 December 2023 and approved by the Board of Management on 12 March 2024. These consolidated financial statements comprise the consolidated balance sheet as at 31 December 2022, the consolidated income statement and the consolidated cash flow statement for the year then ended, and explanatory notes to the consolidated financial statements, as set out on pages 5 to 91.
The Board of Management is responsible for the preparation and the true and fair presentation of these consolidated financial statements in accordance with Vietnamese Accounting Standards, the Vietnamese Corporate Accounting System and applicable regulations on preparation and presentation of consolidated financial statements and for such internal control which the Board of Management determines as necessary to enable the preparation and fair presentation of the consolidated financial statements that are free from material misstatements, whether due to fraud or errors.
Our responsibility is to express an opinion on the consolidated financial statements based on our audit. We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical standards and requirements and plan and perform the audit in order to obtain reasonable assurance as to whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including an assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the Corporation’s preparation and true and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Corporation as at 31 December 2023, its consolidated financial performance and consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, the Vietnamese Corporate Accounting System and applicable regulations on preparation and presentation of consolidated financial statements.
The report on review of consolidated financial information is prepared in Vietnamese and English. Should there be any conflict between the Vietnamese and English versions, the Vietnamese version shall take precedence.
Luong Thi Anh Tuyet
Audit Practising Licence No.
3048-2024-006-1
Authorised signatory
Nguyen Duy Thinh
Audit Practising Licence No.
4633-2023-006-1
As at 31 December
Cash and cash equivalents
Cash Cash equivalents
Short-term investments
Investments held to maturity
Short-term receivables
Short-term trade accounts receivable
Short-term prepayments to suppliers
Construction contracts-in-progress receivables
Other short-term receivables
Provision for doubtful debts – short term
Inventories
Inventories
Provision for decline in value of inventories
Other current assets
Short-term prepaid expenses
Value Added Tax (“VAT”) to be reclaimed
Tax and other receivables from the State
Other current assets
16,289,894,707,172 5,757,120,569,689 3,628,139,793,273 2,128,980,776,416 4,329,388,583,505 4,329,388,583,505 4,185,005,658,625 3,111,110,095,704 429,627,258,156 126,550,860,677 639,548,337,836 (121,830,893,748) 1,470,404,312,744 1,476,352,778,671 (5,948,465,927) 547,975,582,609 50,799,468,416 495,021,150,547 2,154,963,64616,469,858,413,380 5,219,378,499,294 3,689,136,368,050 1,530,242,131,244 4,837,330,575,989 4,837,330,575,989 5,047,010,186,018 4,141,268,792,548 305,968,148,150 81,454,247,556 665,728,557,151 (147,409,559,387) 1,089,660,336,824 1,091,610,591,212 (1,950,254,388) 276,478,815,255 38,578,033,644 234,819,754,830 2,944,663,145 136,363,636
The notes on pages 10 to 91 are an integral part of these consolidated financial statements
LONG-TERM
Long-term receivables
Long-term prepayments to suppliers
Other long-term receivables
Fixed assets
Tangible fixed assets
Historical cost
Accumulated depreciation
Intangible fixed assets
Historical cost
Accumulated amortisation
Investment properties
Historical cost
Accumulated depreciation
Long-term assets in progress
Long-term work in progress
Construction in progress
Long-term investments
Investments in associates, joint ventures
Investments in other entities
Provision for long-term investments
Other long-term assets
Long-term prepaid expenses
Deferred income tax assets
Long-term substituted equipment, supplies and spare parts
TOTAL ASSETS
As at 31 December
10,126,114,103,215
122,783,978,233122,783,978,233
3,391,382,056,464 3,327,996,428,447 13,208,829,689,762 (9,880,833,261,315)
63,385,628,017 191,910,443,578 (128,524,815,561)
restated - Note 46)
164,394,960,915 229,280,786,454 (64,885,825,539) 373,055,575,647 69,815,950,708 303,239,624,939 4,944,744,807,570 4,942,961,726,110 3,000,000,000 (1,216,918,540) 1,129,752,724,386 819,532,667,802 277,488,713,037 32,731,343,547 26,416,008,810,387 9,454,171,877,295 123,822,830,133 485,669,637 123,337,160,496 3,048,337,154,034 2,981,318,186,695 12,409,201,634,629 (9,427,883,447,934) 67,018,967,339 187,999,064,578 (120,980,097,239) 169,130,232,771 229,280,786,454 (60,150,553,683) 171,959,008,908 69,815,950,708 102,143,058,200 4,917,691,241,127 4,900,733,639,663 31,125,000,000 (14,167,398,536) 1,023,231,410,322 647,338,421,831 344,735,812,309 31,157,176,182 25,924,030,290,675
The notes on pages 10 to 91 are an integral part of these consolidated financial statements
Short-term liabilities
Short-term trade accounts payable
Short-term advances from customers
Tax and other payables to the State
Payable to employees
Short-term accrued expenses
Construction contracts-in-progress payables
Short-term unearned revenue
Other short-term payables
Short-term borrowings
Provision for short-term liabilities
Bonus and welfare funds
Long-term liabilities
Long-term advances from customers
Long-term accrued expenses
Long-term unearned revenue
Other long-term payables
Long-term borrowings
Deferred income tax liabilities
Provision for long-term liabilities
Fund for science and technology development 12,871,785,895,146 9,059,981,932,254 3,512,913,500,344 251,743,849,255 131,349,802,704 644,082,888,285 1,777,032,496,201 237,901,633,014 10,236,504,784 650,221,996,761 1,176,092,479,623 45,176,198,567 623,230,582,716 3,811,803,962,892 839,154,706,766 24,609,845 184,132,364,144 69,632,448,385 563,921,256,799 695,304,220,797 1,454,852,195,877 4,782,160,279 12,869,229,041,019 9,191,675,985,667 5,301,151,233,703 213,682,326,442 110,940,195,369 620,879,890,466 894,744,572,439 17,741,336,460 10,707,454,076 593,925,466,932 752,208,505,290 69,417,120,032 606,277,884,458 3,677,553,055,352 781,044,054,435190,488,163,928 69,699,115,385 623,765,467,201 764,257,125,923 1,242,738,506,640 5,560,621,840
Capital and reserves
Owners’ capital
- Ordinary shares with voting rights
Share premium
Foreign exchange differences
Investment and development funds
Undistributed earnings
- Undistributed post-tax profits of previous years - Post-tax profits of current year
Non-controlling interests
TOTAL RESOURCES
Duong Thi Ngoc Quy Preparer
Nguyen Van Bao Chief Accountant
13,544,222,915,241 13,544,222,915,241 4,779,662,900,000 4,779,662,900,000 39,617,060,000 515,577,712,981 3,451,157,842,825 4,048,270,461,638 3,044,171,472,890 1,004,098,988,748 709,936,937,797 26,416,008,810,387 13,054,801,249,656 13,054,801,249,656 4,779,662,900,000 4,779,662,900,000 39,617,060,000 394,170,781,659 3,214,094,269,215 3,896,782,758,228 2,928,678,969,182 968,103,789,046 730,473,480,554 25,924,030,290,675
Manh Cuong Chief Executive Officer
ASSETS 2022 VND Year ended 31 December
(As restated - Note 46) 2023 VND
Revenue from sales of goods and rendering of services
Less deductions
Net revenue from sales of goods and rendering of services
Cost of goods sold and services rendered
Gross profit from sales of goods and rendering of services
Financial income
Financial expenses - Including: Interest expenses
Profit sharing from associates and joint ventures
Selling expenses
General and administration expenses
Net operating profit
Other income
Other expenses
Net other income
Net accounting profit before tax
Corporate income tax (“CIT”) - current
CIT - deferred
Net profit after tax 19,378,650,591,719 (5,088,227,958) 19,373,562,363,761 (18,334,534,034,521) 1,039,028,329,240 789,718,119,202 (216,353,920,630) (73,036,083,814) 651,130,073,326 (85,405,257,798) (966,858,088,315) 1,211,259,255,025 1,578,756,070,062 (1,512,707,692,127) 66,048,377,935 1,277,307,632,960 (219,005,912,673) 1,705,805,854 1,060,007,526,141 16,372,875,090,968 (6,461,436,399) 16,366,413,654,569 (15,352,536,238,308) 1,013,877,416,261 489,061,740,268 (162,633,555,590) (50,646,884,587) 657,204,081,658 (79,326,222,890) (827,746,592,838) 1,090,436,866,869 221,958,040,323 (36,471,133,930) 185,486,906,393 1,275,923,773,262 (161,524,013,102) (63,741,374,516) 1,050,658,385,644
Attributable to:
Non-controlling interests
989,419,519,453 61,238,866,191 1,438 1,438
Duong Thi Ngoc Quy Preparer
Nguyen Van Bao Chief Accountant
Le Manh Cuong Chief Executive Officer
12 March 2024
The notes on pages 10 to 91 are an integral part of these consolidated financial statements
(Indirect method)
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit before tax
Adjustments for:
Depreciation and amortisation
Provisions
Unrealised foreign exchange losses
Profits from investing activities
Interest expense
Other adjustments
Operating profit before changes in working capital
Decrease/(increase) in receivables
(Increase)/decrease in inventories
(Decrease)/increase in payables
Increase in prepaid expenses
Interest paid
CIT paid
Other payments on operating activities
Net cash (outflows)/inflows from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of fixed assets and other long-term assets
Proceeds from disposals of fixed assets
Deposite at banks with maturity of over 3 months
Collection of deposite at banks with maturity of over 3 months
Dividends, profit sharings and interest received
Net cash inflows/(outflows) from investing activities
The notes on pages 10 to 91 are an integral part of these consolidated financial statements 1,277,307,632,960 493,006,130,650 141,585,760,208 15,122,546,118 (1,119,799,343,543) 73,036,083,814880,258,810,207 606,498,409,023 (386,316,354,824) (663,145,776,574) (184,415,680,743) (73,809,507,123) (172,372,344,308) (291,199,880,489) (284,502,324,831) (899,088,732,255) 4,799,930,050 (6,285,921,243,630) 6,793,863,236,114 1,203,953,887,462 817,607,077,741 1,275,923,773,262 471,290,373,424 156,353,514,838 31,156,712,303 (977,788,945,720) 50,646,884,587 (2,284,833,333) 1,005,297,479,361 (353,598,469,197) 1,005,483,695,845 442,527,084,419 (36,931,545,309) (45,933,086,253) (285,957,005,772) (233,230,894,195) 1,497,657,258,899 (498,418,211,861) 62,976,905,532 (6,378,205,000,000) 4,181,122,187,857 905,089,108,912 (1,727,435,009,560)
Year ended 31 December
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
Repayments of borrowings
Dividends paid, profits distributed to owners
Net cash outflows from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year Effect of foreign exchange differences
Cash and cash equivalents at end of year
Duong Thi Ngoc Quy Preparer
Nguyen Van Bao Chief Accountant
The notes on pages 10 to 91 are an integral part of these consolidated financial statements (As restated - Note 46)
508,805,808,895 (163,345,447,892) (377,693,326,900) (32,232,965,897) 500,871,787,013 5,219,378,499,294 36,870,283,382 5,757,120,569,689 266,120,897,834 (157,725,139,878) (429,659,854,200) (321,264,096,244) (551,041,846,905) 5,747,277,411,831 23,142,934,368 5,219,378,499,294 23
Le Manh Cuong Chief Executive Officer
12 March 2024
PetroVietnam Technical Services Corporation (“parent Company”, parent Company and its subsidiaries, together, the “Corporation”) is a joint stock company established in SR Vietnam pursuant to the initial Enterprise registration certificate No. 0103015198 dated 29 December 2006 issued by the Department of Planning and Investment of Ha Noi City and the amended Enterprise registration certificates No. 0100150577 issued by the Department of Planning and Investment of Ho Chi Minh City. The latest tenth amendment was issued by the Department of Planning and Investment of Ho Chi Minh City on 20 February 2019.
The shares of the Corporation have been officially listed in the Hanoi Stock Exchange since 20 September 2007 with the share code of PVS, pursuant to the Decision No.242/QĐ-TTGD signed by the General Director of Hanoi Stock Exchange on 12 September 2007.
The main shareholder of the parent Company is Vietnam Oil and Gas Group (“the Group”). Details of capital contribution are presented in Note 27. The business sector of the parent Company and its subsidiaries (together, “the Corporation”) is to provide petroleum technical services. The principal activities of the Corporation are comprised of:
– Supplying oil and gas technical services;
– Management, operation and supply of the technology service vessels;
– Supplying business management and administrative services; port-based services; ship services, tallying services and freight forwarding;
– Management, business, and operation of the floating storage and offloading (“FSO”), floating production storage and offloading (“FPSO”);
– Supplying services for geophysical survey activities - engineering geology, diving services, ROV provision services for oil and gas exploration, exploration and exploitation and industrial and civil works;
– Management and implementation of marine engineering activities;
– Machining, assembly, fabrication of components, oil and gas equipment;
– Fabrication and installation of all types of petroleum storage tanks, liquefied gas pipelines and other types of oil and gas;
– Repairment of shipping vessels and the offshore oil and gas projects;
– Maintenance, repairment, building and conversion of floating facilities;
– Exportation and importation of equipment for oil and gas supplies;
– Production and supply of petroleum materials and equipment;
– Supplying petroleum specialized labour;
– Operation and maintenance of oil and gas exploitation projects;
– Supplying hotels, housing, office services;
– Sales of petroleum products;
– Shipping agency services and maritime brokerage; and
– Chartering, shipping brokerage, towage and salvage services.
– Producing electricity, electricity transmission and distribution, construction of industrial works and renewable energy.
The normal business cycle of the Corporation is within 12 months. For construction activities, the business cycle could be over 12 months to 24 months.
The Corporation’s structure
As at 31 December 2023, the Corporation has 6 branches and 1 representative office, 13 direct subsidiaries, 6 direct associates and joint ventures, 2 indirect associate. Details are presented as follows:
Branches and representative office:
No.
Name
Branch of PetroVietnam Technical Services CorporationPTSC Marine
Branch of PetroVietnam Technical Services CorporationPTSC Supply Base
Branch of PetroVietnam Technical Services CorporationPTSC Da Nang
Branch of PetroVietnam Technical Services CorporationQuang Binh General Petroleum Services Port.
Branch of PetroVietnam Technical Services CorporationLong Phu Power Project Management Board
PTSC Abu Dhabi (*)
Representative office of PetroVietnam Technical Services Corporation in Ha Noi
Address
No. 73, 30/4 Street, Thong Nhat Ward, Vung Tau City, Vietnam
No. 65A, 30/4 Street, Thong Nhat Ward, Vung Tau City, Vietnam
No. 11, 3/2 Street, Hai Chau Ward, Da Nang City, Vietnam
Hon La Port, Quang Dong Ward, Quang Trach District, Quang Binh Province, Vietnam
Thanh Duc Commune, Long Duc Ward, Long Phu, Soc Trang Province, Vietnam
Suite 1721, Level 17, The Offices World Trade Center, Central Market, AI Markaziya, Abu Dhabi, UAE
No. 142, Nguyen Khuyen Street, Van Mieu Ward, Dong da District, Ha Noi City, Vietnam
(*) On 19 July 2022, Board of Directors issued Decision No. 322/QD-PTSC-HDQT on establishing a branch of PetroVietnam Technical Serves Corporation in the Middle East. At the date of the financial statements, the Corporation is completing related procedures to establish a Branch according to local country regulations.
Operation of 2D and 3D vessels, seismic survey services, geophysical and geological survey services, diving, and subsea services by using remote operated vehicle (“ROV”)
Hotel services and related services to domestic and oversea companies in petroleum industry
Providing service vessels in petroleum and gas exploration
Management, operation and supply technology service vessels; supplying port-based services; mechanical, construction, repair and maintenance services of oil and gas projects, industrial buildings
Offshore transportation, installation, hook up commissioning, modification, operation and maintenance, offshore facilities decommissioning services of oil and gas projects
Supplying port-based services
Supplying port-based services; mechanical, construction, repair and maintenance services of oil and gas projects, industrial buildings
Management, operation and maintenance of the floating storage and offloading (“FSO”), floating production storage and offloading (“FPSO”), supply of petroleum specialized labour
Supplying port-based services and container services
Place of incorporation and operation
The Corporation’s structure (Continued)
Principal
2D and 3D
Management, business and operation of the floating production storage and offloading (“FPSO”)
Management, business and operation of the floating storage and offloading (“FSO”)
Management, business and operation of the floating production storage and offloading (“FPSO”)
Management, business and operation of the floating storage and offloading (“FSO”)
Management, business and operation of the floating storage and offloading (“FSO”)
Building, repair and conversion of drilling rigs, marine vessels
Supplying port-based services
Construction of civil works
Malaysia
Singapore
Singapore
Malaysia
Singapore
On 16 October 2023, Board of Directors of Petrovietnam Technical Services Corporation issued Resolution No. 662/NQ-PTSC-HDQT on approving the dissolution of PTSC Labuan Company Limited and terminating the overseas investment project for “Project to establish PTSC Labuan Company Limited to supply technology service vessels in Malaysia”. At the date of the consolidated financial statements, the Corporation is in the process of carrying out dissolution procedures.
The Board of Management of PTSC Labuan Company Limited has evaluated and decided to prepare its financial statements for the year ended 31 December 2023 on liquidation basis in accordance with Vietnamese Accounting Standards, the Vietnamese Corporate Accounting System and applicable regulations on preparation and presentation of financial statements.
As at the date of the consolidated financial statements, the Corporation is working with CGG Holding B.V. (formerly known as, “CGG Veritas Services Holding B.V.”) to end the joint venture contract before its expiration and to carry out necessary procedures to dissolve PTSC CGGV’s operation in accordance with official approved documents from authorities and the Resolutions of the Corporation’s Board of Directors.
Since 2018 to the date of these consolidated financial statements, PTSC CGGV has stopped its operation. Accordingly, the Board of Management of PTSC CGGV has evaluated and decided to prepare its financial statements for the year ended 31 December 2023 on liquidation basis in accordance with Vietnamese Accounting Standards, the Vietnamese Corporate Accounting System and applicable regulations on preparation and presentation of financial statements.
As at 31 December 2023, the Corporation had 7,209 employees (as at 31 December 2022: 6,935 employees)
2.1 Basis of preparation of consolidated financial statements
The consolidated financial statements have been prepared in accordance with Vietnamese Accounting Standards, the Vietnamese Corporate Accounting System and applicable regulations on preparation and presentation of consolidated financial statements. The consolidated financial statements have been prepared under the historical cost convention and on a going concern basis except for investments in associates and joint ventures and business combinations as presented in Note 2.5, and the basis of accounting for PTSC Labuan Company Limited’s and PTSC CGGV’s financial statements on liquidation basis as presented in Note 1.
The accompanying consolidated financial statements are not intended to present the consolidated financial position and consolidated results of operations and consolidated cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Vietnam’s. The accounting principles and practices utilised in Vietnam may differ from those generally accepted in countries and jurisdictions other than Vietnam.
The consolidated financial statements in the Vietnamese language are the official statutory consolidated financial statements of the Corporation. The consolidated financial statements in the English language have been translated from the Vietnamese version.
2.2 Fiscal year
The Corporation’s fiscal year is from 1 January to 31 December. The consolidated financial statements are prepared for the fiscal year from 1 January to 31 December.
2.3 Currency
The consolidated financial statements are measured and presented in Vietnamese Dong (“VND”).
The Corporation determines their accounting currencies based on the currencies which are mainly used in sales of goods and rendering of services, which have a significant impact on selling prices of goods and services, which are normally used to list selling prices and receive payments; which are mainly used in purchases of goods or services, which have a significant impact on cost of labour, materials, merchandise, and other production or operating costs and normally used as payments for those costs.
Additionally, the Corporation also uses these currencies to raise financial resources and/or regularly collects these currencies from business operation and savings.
On consolidating, if the currencies used in the components’ financial statements are different from that of the parent Company, the Corporation is required to translate those financial statements into the currency used in the Corporation’s consolidated financial statements under the following principles
• Assets and liabilities are translated at actual exchange rate at the end of the reporting year;
• Owners’ capital is translated at the exchange rate of contribution date;
• Net assets of those acquired companies are translated at the exchange rate of acquisition date;
• Undistributed earnings or accumulated losses incurred after acquisition date are translated based on the translation of income and expenses in the income statement;
• Profits and dividends already paid are translated at the actual exchange rate at the date of payment;
• Items of the income statement and the cash flow statement are translated at the average exchange rate of the accounting period if it approximates the actual rate at the time of the transaction;
• The accumulative amount of exchange differences arising from translation is presented in a separate component of owners’ equity of the consolidated balance sheet. For subsidiaries, accumulated exchange differences attributable to the parent Company are presented in “Foreign exchange differences” and those attributable to non-controlling interests are allocated to “Non-controlling interests”; and
• Upon disposal, the accumulated exchange difference relating to translation of these companies’ financial statements presented in owners’ equity of the consolidated balance sheet is recognised as financial income or financial expense in the same reporting year.
Transactions arising in foreign currencies are translated at exchange rates ruling at the transaction dates. Foreign exchange differences arising from these transactions are recognised in the consolidated income statement.
Monetary assets and liabilities denominated in foreign currencies at the consolidated balance sheet date are respectively translated at the buying and selling exchange rates at the consolidated balance sheet date of the commercial bank(s) where the Corporation regularly trades. Foreign currencies deposited in commercial bank(s) at the consolidated balance sheet date are translated at the buying exchange rate of the commercial bank(s) where the Corporation opens its foreign currency accounts. Foreign exchange differences arising from these translations are recognised in the consolidated income statement.
2.5
Subsidiaries
Subsidiaries are all entities over which the Corporation has the power to govern the financial and operating policies in order to gain future benefits from their activities generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Corporation controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Corporation. They are de-consolidated from the date that control ceases.
The purchase method of accounting is used to account for the acquisition of subsidiaries by the Corporation. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest. The excess of the cost of acquisition over the fair value of the Corporation’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the consolidated income statement.
In a multi-phase acquisition, when determining goodwill or bargain purchase, the consideration is the sum of the total consideration on the date of acquiring control and previous considerations remeasured to fair value on the date of control acquisition.
Inter-company transactions, balances and unrealised gains and losses on transactions between group companies are eliminated.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Corporation.
The financial statements of the Corporation’s subsidiaries are prepared for the same accounting period. If there are differences in end dates, the gap must not exceed 3 months. Adjustments are made to reflect impacts of significant transactions and events occurring between the end dates of the subsidiaries’ fiscal year and that of the Corporation’s. The length of the reporting year and differences in reporting date must be consistent between years.
Non-controlling transactions and interests
The Corporation applies a policy for transactions with non-controlling interests as transactions with external parties to the Corporation.
Non-controlling interests (“NCI”) are measured at their proportionate share of the acquiree’s identifiable net assets at date of acquisition.
Transactions leading to the change in the Group’s ownership interest in a subsidiary that does not result in a loss of control is accounted for as a transaction with owners. The difference between the change in the Corporation’s share of net assets of the subsidiary and any consideration paid or received from divestment of Corporation’s interest in the subsidiary is recorded directly in the undistributed earnings or accumulated losses under equity.
Transactions leading to the change in the Group’s ownership interest in a subsidiary that results in a loss of control, the difference between the Corporation’s share in the net assets of the subsidiary and the net proceeds from divestment is recognised in the consolidated income statement. The retained interest in the entity will be accounted for as either an investment in other entity or investment to be equity accounted for since the divestment date.
Joint ventures and associates
A joint venture is a contractual agreement by two or more parties to jointly conduct an economic activity, which is jointly controlled by the joint venture capital partners. Associates are investments that the Group has significant influence but not control over and the Group would generally have from 20% to less than 50% of the voting rights of the investee. Investments in joint ventures and associates are accounted for using the equity method of accounting and are initially recognised at cost. The Group’s investment in joint ventures and associates includes goodwill identified on acquisition, net of any accumulated impairment loss.
The Group’s share of the post-acquisition profits or losses of its joint ventures and those of its associates is recognised in the consolidated income statement. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group’s share of losses in a joint venture or associate equals or exceeds its interest in the joint venture or associate, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the joint venture or associate.
Accounting policies of joint ventures and associates have been changed where necessary to ensure consistency with the policies adopted by the Corporation.
Unrealised gains and losses on transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group’s interest in the joint ventures and associates.
(Continued)
Cash and cash equivalents comprise cash on hand, cash in banks, demand deposits, cash in transit, and other short-term investments with an original maturity of three months or less, which are highly liquid and readily convertible to known amounts of cash and subject to an insignificant risk of changes in value at the date of the consolidated financial statements.
2.7 Receivables
Receivables represent trade receivables arising from sales of goods and rendering of services or non-trade receivables and are stated at cost. Provision for doubtful debts is made for each outstanding amount based on overdue days in payment according to the initial payment commitment (exclusive of the payment rescheduling between parties), or made for each outstanding amount that is not overdue but doubtful and so the Corporation may be unable to collect the debts. Bad debts are written off when identified according to current prevailing accounting regulations and the Corporation’s finance management policies.
Receivables are classified into long-term and short-term receivables on the consolidated balance sheet based on the remaining period from the consolidated balance sheet date to the collection date.
Inventories are stated at the lower of cost and net realisable value. Cost is determined by the weighted average method and includes direct materials, direct labor costs, overhead expenses, purchase cost, and other costs incurred in bringing the inventories to their present location and condition. Net realisable value is the estimated selling price in the normal course of business, less the estimated costs of completion and selling expenses such as publicity, selling and distribution expenses.
The Corporation applies the perpetual system for inventories.
Provision is made for obsolete, slow-moving and defective inventory items. The difference between the provision of this year and the provision of the previous year are recognised as an increase or decrease of cost of goods sold in the year.
Inventories are classified as short-term and long-term on the consolidated balance sheet based on the plan for use in production and business activities of the Corporation at the date of the consolidated balance sheet.
Investments held to maturity are investments which the Corporation has positive intention and ability to hold until maturity.
Investments held to maturity include bank term deposits and other held-to-maturity investments. Those investments are initially accounted for at cost and measured at acquisition price plus directly attributable transaction costs. Post-acquisition interest income from investments held to maturity is recognised in the consolidated income statement on accrual basis. Pre-acquisition interest is deducted from the cost of such investments at the acquisition date.
Provision for diminution in value of investments held to maturity is made when there is evidence that the investment is uncollectible in whole or in part. Changes in the provision balance during the fiscal year are recorded as an increase or decrease in financial expenses. A reversal, if any, is made only to the extent the investment is restored to its original cost.
Investments held to maturity are classified into short-term and long-term investments held-to-maturity on the consolidated balance sheet based on remaining period from the consolidated balance sheet date to the maturity date.
Investments in other entities are investments in equity instruments of other entities without controlling rights or co-controlling rights, or without significant influence over the investee. These investments are accounted for initially at cost. Subsequently, the Board of Management reviews all outstanding investments to determine the amount of provision to recognise at the year end.
Provision for diminution in value of investments in other entities is made in accordance with current prevailing accounting regulations and current accounting policies when there is a diminution in value of the investments at the period/year end. Regarding investments in listed shares or those whose fair value can be determined reliably that the Corporation plans to invest in long-term, the provision for diminution in value is made when cost is higher than its expected recoverable amount. For other investments, provision for diminution in value is made when the investees make losses. Changes in the provision balance during the accounting period/fiscal year are recorded as an increase or decrease in financial expenses. A reversal, if any, is made only to the extent the investment is restored to its original cost.
A construction contract is a contract specifically negotiated for the construction of an asset or a combination of assets that are closely interrelated or interdependent in terms of their design, technology and functions or their ultimate purpose of use.
When the outcome of a contract can be estimated reliably, and the contractor is paid in accordance with the planned schedule, contract revenue and contract costs are recognised over the period of the contract as revenue and expenses, respectively by reference to the stage of completion of the contract activity at the end of the reporting period, regardless of progress billings and how much it is billed. The Corporation uses the percentage of completion method to determine the appropriate amount of revenue and costs to be recognised in the fiscal year. The percentage of completion is measured by reference to the proportion of actual contract costs incurred to date to the estimated total costs of each contract, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that they have been agreed with the customer. Where it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.
When the outcome of a construction contract cannot be reliably estimated, contract revenue is recognised to the extent of contract costs incurred where it is probable those costs will be recoverable. Contract costs are only recognised when incurred during the year.
The aggregate of the costs incurred and the profit or loss recognised on each contract is compared against the progress billings up to the year end. Where costs incurred and profits recognised (less recognised losses) exceed progress billings, the balance is presented as receivables for construction contracts-in-progress. Where progress billings exceed costs incurred plus recognised profits (less recognised losses), the balance is presented as payables for construction contracts-in-progress.
When the outcome of a contract can be estimated reliably and the contractor is paid for the works performed and certified by the customer, contract revenue and contract costs are recognised in the period for the works performed and certified by customer in the year and reflected in the billed invoices
Fixed assets are stated at historical cost less accumulated depreciation or amortisation. Historical cost includes expenditure that is directly attributable to the acquisition of the fixed assets bringing them to their suitable conditions for their intended use, in which the historical costs of purchased fixed assets comprise their purchase prices and any directly attributable costs of bringing the assets to their suitable conditions for their intended use. In regard fixed assets formed from construction investment by contractual mode or self-construction or self-generating process, the historical costs are the settled costs of the invested construction projects in accordance with the prevailing State’s regulations on investment and construction management, directly-related expenses and registration fee (if any). In the event the construction project has been completed and put into use but the settled costs thereof have not been approved, the historical cost is recognized at the estimated cost based on the actual cost incurred. The estimated cost will be adjusted according to the settled costs approved by competent authorities. Expenditure incurred subsequently which has resulted in an increase in the future economic benefits expected to be obtained from the use of fixed assets, can be capitalised as an additional historical cost. Otherwise, such expenditure is charged to the consolidated income statement when incurred.
Fixed assets are depreciated and amortised using the straight-line method so as to write off the historical cost of the fixed assets over their estimated useful lives. The estimated useful lives of each asset class are as follows:
Buildings and structures
Machinery and equipment
Transport and transmission vehicles
Office equipment
Other tangible fixed assets
Software
Land use right
Other intangible fixed assets
Land use rights are comprised of land use rights with a definite useful life are recorded in accordance with the terms indicated in the land use rights certificate issued by Department of Planning and Investment of Ho Chi Minh City on 29 December 2006 and amortised using the straight-line method over 50 years in accordance with such land use rights certificate.
Definite land use rights are stated at costs less accumulated amortisation. Costs of land use rights consists of its purchased prices and any directly attributable costs in obtaining the land use rights. Land use rights are amortised using the straight-line basis over the terms of the land use right certificates.
Indefinite land use rights are states at costs and not amortised.
Gains or losses on disposals are determined by comparing net disposal proceeds with the carrying amount of the fixed assets and are recognised as income or expense in the consolidated income statement.
Construction in progress
Construction in progress represents the cost of assets in the course of construction for production, rental or administrative purposes, or for purposes not yet determined, including construction costs, costs of tools and equipment, construction consulting expenditures, and capitalised borrowing costs for qualifying assets in accordance with the Corporation’s accounting policies. In the event of the construction project has been completed and put into use, these expenses will be capitalized to the historical cost of fixed assets at the estimated cost based on the actual cost incurred (in case the settled costs have not been approved). According to the State’s regulations on investment and construction management, the settled costs of completed construction projects are subject to approval by appropriate level of competent authorities. The final costs of these completed construction projects may vary depending on the final approval by competent authorities.
Depreciation of these assets, on the same basis as other fixed assets, commences when they are ready for their intended use.
Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the consolidated income statement on a straight-line basis over the term of the lease.
The historical cost of an investment property represents the amount of cash or cash equivalents paid or the fair value of other consideration given to acquire the investment property at the time of its acquisition or completion of construction. Expenditure incurred subsequently which has resulted in an increase in the expected future economic benefits from the use of investment properties can be capitalised as an additional historical cost. Otherwise, such expenditure is charged to the consolidated income statement when incurred.
Investment properties are depreciated under the straight-line method to write off the historical cost of the assets over their estimated useful lives. The estimated useful lives of investment properties are as follows:
Infrastructure 48 - 49 years
Gains or losses on disposals are determined by comparing net disposal proceeds with the carrying amount of investment properties and are recognised as income or expense in the consolidated income statement.
Prepaid expenses include short-term and long-term prepayments on the consolidated balance sheet. Short-term prepaid expenses represent prepayments for services; or tools that do not meet the recognition criteria for fixed assets for a period not exceeding 12 months or a business cycle from the date of prepayment. Long-term prepaid expenses represent prepayments for services; or tools, which do not meet the recognition criteria for fixed assets for a period exceeding 12 months or more than one business cycle from the date of prepayment. Prepaid expenses are recorded at historical cost and allocated on a straight-line basis over their estimated useful lives.
Prepayments for land rental contracts which are effective after the effective date of the land law 2003 (ie. 1 July 2004) or which land use right certificates are not granted are recorded as prepaid expenses and allocated using the straight-line basic over the terms of such land use right certificates.
Classifications of payables are based on their nature as follows:
• Trade accounts payable are trade payables arising from purchase of goods and services; and
• Other payables are non-trade payables and not relating to purchases of goods and services.
Payables are classified into long-term and short-term payables on the consolidated balance sheet based on remaining period from the consolidated balance sheet date to the maturity date.
2.16 Borrowing
Borrowings include borrowings from banks, related parties and third parties.
Borrowings are classified into long-term and short-term borrowings on the consolidated balance sheet based on their remaining period from the consolidated balance sheet date to the maturity date.
Borrowing costs that are directly attributable to the construction or production of any qualifying assets are capitalised during the period of time that is required to complete and prepare the asset for its intended use. In respect of general-purpose borrowings, a portion of which is used for the purpose of construction or production of any qualifying assets, the Company determines the amount of borrowing costs eligible for capitalisation by applying a capitalisation rate to the weighted average expenditure on the assets. The capitalisation rate is the weighted average of the interest rates applicable to the Company’s borrowings that are outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. Other borrowing costs are recognised in the consolidated income statement when incurred.
2.17 Accrued expenses
Accrued expenses include liabilities for goods and services received in the year but not yet paid due to pending invoice or insufficient records and documents. Accrued expenses are recorded as expenses in the reporting year. The recognition of accrued expenses is determined based on the present obligation, which is determined reliably at the time of payment.
(Continued)
2.18 Provisions for liabilities
Provisions are recognised when the Corporation has a present legal or constructive obligation as a result of past events that the Corporation is obliged to settle this obligation, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provision is not recognised for future operating losses.
Provisions are estimated on the amount of money which may be required to settle the obligation. If the time value of money is material, provision will be measured at the present value using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a financial expense. Changes in the provision balance during the fiscal year are recorded as an increase or decrease in operating expenses.
2.19 Unearned revenue
Unearned revenue mainly comprises the amounts that customers paid in advance for one or many accounting periods for leasing assets and related services accompanied the assets. The Corporation records unearned revenue for the future obligations that the Corporation has to fulfill. Once recognition criteria have been satisfied, unearned revenue will be recognised as revenue in the consolidated income statement to the extent that it has met the recognition criteria.
Unearned revenue is classified into short-term and long-term on the consolidated balance sheet according to the portion of obligations that are satisfied for revenue recognition as at the consolidated balance sheet.
Capital and reserves
(a) Owners’ capital
Owners’ capital is recorded according to the actual amounts contributed and are recorded according to par value of the share.
(b) Share premium
Share premium is the difference between the par value and the issued price of shares; the difference between the repurchased price and re-issuing price of treasury shares.
(c) Undistributed earnings
Undistributed earnings record the Corporation’s accumulated results after CIT at the reporting date.
Profit after CIT could be distributed to shareholders in accordance with Resolutions of the Shareholders’ Annual General Meetings of the parent Company and its subsidiaries including dividend paid and appropriation to funds in accordance with the Corporation’s charter and Vietnamese regulations.
The Corporation’s dividends are recognised as a liability on the consolidated financial statements in the year in which the shareholder list for dividend payment is finalised according to the Resolution of Board of Management and after the dividends are approved by shareholders at the Annual General Meeting of Shareholders.
The Corporation’s funds are as below:
(a) Investment and development fund
Investment and development fund is appropriated from net profit after CIT of the Corporation and subject to shareholders’ approval at the Annual General Meeting of the Shareholders. This fund is used for expanding and developing the business of the Corporation under the form of additional capital contribution.
(b) Bonus and welfare fund
Bonus and welfare fund is appropriated from the Corporation’s net profit after CIT and subject to shareholders’ approval at the Annual General Meeting of the Shareholders. This fund is presented as a liability on the consolidated balance sheet and is used for rewarding and encouraging, enhancing the physical and mental well-being of the employees.
(a) Revenue from sales of goods
Revenue from sale of goods is recognised in the consolidated income statement when all five (5) following conditions are satisfied:
• The Corporation has transferred to the buyer the significant risks and rewards of ownership of the goods;
• The Corporation retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
• The amount of revenue can be measured reliably;
• It is probable that the economic benefits associated with the transaction will flow to the Corporation; and
• The costs incurred or to be incurred in respect of the transaction can be measured reliably.
No revenue is recognised if there are significant uncertainties regarding recovery of the consideration due or the possible return of goods.
Revenue is recognised in accordance with the “substance over form” principle and allocated to each sale obligation.
(Continued)
2.22 Revenue recognition (continued)
(b) Revenue from rendering of services
Revenue from rendering of services is recognised in the consolidated income statement when the services are rendered, by reference to completion of the specific transaction assessed on the basis of the actual service provided as a proportion of the total services to be provided. Revenue from rendering of services is only recognised when all four (4) following conditions are satisfied:
• The amount of revenue can be measured reliably;
• It is probable that the economic benefits associated with the transaction will flow to the Corporation;
• The percentage of completion of the transaction at the consolidated balance sheet date can be measured reliably; and
• The costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
(c) Revenue from construction contracts
Revenues from construction contracts are comprised of the revenue initially set out in contracts; increases and/or decreases during the term of the contract; bonuses; and other payments to be received from customers or other parties to compensate for the costs not included in the contractual price; other payments that customers agreed to compensate, and other payments provided that these amounts can change the revenue and can be reliably determined. Revenue from construction contracts is recognised in accordance with the guidance presented in Note 2.10.
(d) Revenue from operating lease
Revenue from operating lease is recorded on straight line basis over the lease terms..
(e) Interest income
Interest income is recognised on the basis of the actual time and interest rates for each period when both conditions are simultanously satisfied:
(a) It is probable that economic benefits will be generated;
(b) Income can be measured reliably.
(f) Dividend, profit distribution income
Income from dividend, profit distribution is recognised when the Corporation has established the receiving right from investees.
2.23 Cost of goods sold and services rendered
Cost of goods sold and services rendered are cost of merchandise, materials sold or services rendered during the year, and recorded on the basis of matching with revenue and on a prudence basis.
2.24 Financial expenses
Financial expenses are expenses incurred in the year for financial activities including expenses or losses relating to financial investment activities, expenses of borrowing, provision for diminution in value of investments in other entities, losses incurred when selling foreign currencies; and losses from foreign exchange differences.
2.25 Selling expenses
Selling expenses represent expenses that are incurred in the process of sales of goods, and rendering of services, which include: marketing expenses, product introduction, product promotion, sales commission and other sales expenses.
General and administration expenses represent expenses for administrative purposes which include salary expenses of administrative staff; social insurance, medical insurance, labour union fees, unemployment insurance of administrative staff; expenses of office materials; tools and supplies; depreciation and amortisation of fixed assets used for administration; land rental; licence tax; provision for bad debts; outside services and other expenses.
2.27
Income taxes include all income taxes which are based on taxable profits including profits generated from production and trading activities in other countries with which the Socialist Republic of Vietnam has not signed any double taxation agreement. Income tax expense comprises current income tax expense and deferred income tax expense.
Current income tax is the amount of income taxes payable or recoverable in respect of the current year taxable profits at the current year tax rates. Current and deferred tax should be recognised as an income or an expense and included in the profit or loss of the year, except to the extent that the tax arises from a transaction or event which is recognised, in the same or a different year, directly in equity.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of occurrence affects neither the accounting nor the taxable profit or loss. Deferred income tax is determined at the tax rates that are expected to apply to the financial year when the asset is realised or the liability is settled, based on tax rates that have been enacted or substantively enacted by the consolidated balance sheet date.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same tax authority and the Corporation intends to settle its current tax assets and liabilities on a net basis.
The determination of the tax currently payable is based on the current interpretation of tax regulations. However, these regulations are subject to periodic variation and their ultimate determination depends on the results of the tax authorities’ examinations.
(Continued)
Enterprises and individuals that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with the Corporation, including holding companies, subsidiaries and fellow subsidiaries are related parties of the Corporation. Associates and individuals owning, directly or indirectly, an interest in the voting power of the Corporation that gives them significant influence over the Corporation, key management personnel, including Board of Management, Board of Directors of the Corporation and close members of the family of these individuals and companies associated with these individuals also constitute related parties.
In considering the related party relationship with each related party, the Corporation considers the substance of the relationship not merely the legal form.
2.29 Segment reporting
A segment is a component which can be separated by the Corporation engaged in sales of goods or rendering of services (“business activity segment”), or sales of goods or rendering of services within a particular economic environment (“geographical segment”). Each segment is subject to risks and returns that are different from those of other segments. A reportable segment is the Corporation’s business segment.
Segment reporting is prepared and presented in accordance with accounting policies applied to the preparation and presentation of the Corporation’s consolidated financial statements in order to help users of consolidated financial statements understand and evaluate the Corporation’s operations in a comprehensive way.
The preparation of consolidated financial statements in conformity with Vietnamese Accounting Standards, the Vietnamese Corporate Accounting System and applicable regulations on preparation and presentation of consolidated financial statements requires the Board of Management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements; and the reported amounts of revenues and expenses during the financial year.
The areas involving significant estimates and assumptions are:
• revenue and cost of sales relating to construction contracts-in-progress (Note 2.10, 2.22, 2.23); and
• receivable and payable relating to construction contracts-in-progress (Note 2.10).
Such estimates and assumptions are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Corporation and that are believed to be reasonable under the circumstances by the Board of Management.
Cash on hand
Cash at bank
Cash in transit
Cash equivalents (*)
9,201,053,670 3,618,761,042,197 177,697,406 2,128,980,776,416 5,757,120,569,689 9,203,959,093 3,679,704,682,612 227,726,345 1,530,242,131,244 5,219,378,499,294
(*) As at 31 December 2023, cash equivalents include term deposits in VND at banks with the original maturity of three months or less and earn interest at the average rates from 0.5% to 4.7% per annum (as at 31 December 2022: from 1% to 6% per annum).
(a) Short-term Investment held-to-maturity
Term deposits include bank deposits in VND with the remaining maturity of not more than 12 months and more than 3 months at commercial bank with interest at the rate from 3.6% to 8.5% per annum (as at 31 December 2022: from 3.5% to 10.3% per annum).
As at 31 December 2023 and 31 December 2022, investments held-to-maturity include deposits with total amount of VND 190,680,000,000 billion with a term of not more than 12 months at Ocean Commercial One Member Limited Liability Bank (“OceanBank”), are being suspended. The Board of Managements assessed that the above-mentioned deposits will be traded again in the future when there are specific regulations from the State Bank.
(b) Long-term investments
Investments in joint venture companies, associates (i)
Other long term investments (ii)
(14,167,398,536) (14,167,398,536)
Investment in associates and joint ventures
(*) As at 31 December 2023 and 31 December 2022, the Corporation had not determined the fair value of these investments for disclosure in the consolidated financial statements because they do not have listed prices or listed on the market but the transaction is not significant. The fair value of such investments may be different from their book value.
(b) Long-term investments (Continued)
(i) Investment in associates and joint ventures (continued)
Movement of investment in associates and joint ventures during the year are as follows:
Cost of investments
Profit sharing from associates and joint ventures:
Beginning of the year
Profit sharing from investments in associates and joint ventures during the year (*)
Dividends received
Exchange rate differences from translating the financial statements during the period/year
End of the year
(*) Details of profits/(losses) sharing from investments in associates and joint ventures during the year are as follows:
Vietnam Offshore Floating Terminal (Ruby) Limited (iii)
PTSC Asia Pacific Private Limited (v)
Malaysia Vietnam Offshore Terminal (Labuan) Limited (ii)
PTSC South East Asia Private Limited (iv)
Thi Vai General Port Joint Stock Company (vii)
Duyen Hai Petro Construction Investment Joint Stock Company (viii) 1,652,802,039,235 3,276,056,600,428 651,130,073,326 (757,473,000,000) 120,446,013,121 4,942,961,726,110 418,134,109,633 156,204,652,853 94,363,604,685 7,932,919,886 (12,226,443,786) (13,278,769,945) 651,130,073,326 1,624,677,039,235 3,199,653,580,210 657,204,081,658 (689,932,500,000) 109,131,438,560 4,900,733,639,663 431,545,021,382 121,600,790,793 149,242,046,794 (44,570,464,425) (613,312,886)657,204,081,658
(i) Rong Doi MV12 Private Limited is a jointly controlled venture company established between the Corporation and its partner, Modec Inc., and Mitsui Co., Ltd. (Both Modec, Inc. and Mitsui Co., Ltd are incorporated in Japan) in 2006 to invest in FSO “Rong Doi MV 12” with the capacity of 300,000 barrels of oil for Korea National Oil Corporation (“KNOC”) to charter from 2007; to use for oil exploitation at Rong Doi – Rong Doi Tay fields, Blocks 11-2 offshore Vietnam. The lease term is 07 years fixed and is renewed each year until the expiry of the FSO’s useful life. As at 31 December 2023 and 31 December 2022, the Corporation’s capital contribution in Rong Doi MV12 Private Limited is USD6,600, equivalent to VND106,022,400.
(ii) Malaysia Vietnam Offshore Terminal (Labuan) Limited (“MVOT”) is a jointly controlled venture company established between the Corporation and its partner, Malaysia International Shipping Corporation Berhard (“MISC), in 2009 to:
• invest in FSO “Orkid” with the capacity of 650,000 barrels of Repsol Oil & Gas Malaysia Limited renting for crude oil exploitation at PM-3 CAA field, offshore Malaysia in the commercial arrangement area between Malaysia and Vietnam from 2009 to 31 December 2027; and
• invest in FSO “Golden Star” with the capacity of 654,717 barrels of oil to Idemitsu Gas Production Vietnam Company Limited renting for crude oil exploitation at the Sao Vang Dai Nguyet field, Blocks 05-1b & 05-1c offshore Vietnam with the 7-year duration since November 2020 to November 2027 and can be extended for another 8 years.
As at 31 December 2023 and 31 December 2022, the Corporation’s capital contribution in MVOT is USD17,258,911, equivalent to VND292,324,455,887.
(iii) Vietnam Offshore Floating Terminal (Ruby) Limited (“VOFT”) is a jointly controlled venture company established by MISC, from 2009, in which, the Corporation owns 60% of the charter capital to own, manage and operate the FPSO “Ruby II” for oil processing and exportation. From June 2010, FPSO “Ruby II” was put into oil and gas exploration and production of Petronas Carigali Vietnam Limited at Blocks 01&02 offshore the continental shelf of Vietnam till 9 September 2017. Since 10 September 2017, Vietnam Oil and Gas Group replaced, received rights and obligations of Petronas Carigali Vietnam Limited for the contract with VOFT based on the agreement between Vietnam Oil and Gas Group and Petronas Carigali Vietnam Limited. As at 31 December 2023 and 31 December 2022, the Corporation’s capital contribution in VOFT is USD8,784,000, equivalent to VND156,473,118,448.
(b) Long-term investments (Continued)
(i) Investment in associates and joint ventures (continued)
(iv) PTSC South East Asia Private Limited (“PTSC SEA”) is a jointly controlled venture company established by the Corporation and Yinson Holdings Berhad from 2011 under Foreign Investment Certificate No. 474/BKHDT-DTRNN issued by the Ministry of Planning and Investment dated 31 October 2011 to invest and supply FSO services (FSO “PTSC Bien Dong 01”) for Branch of Vietnam Oil and Gas Group - Bien Dong POC about crude oil exploitation at Blocks 05.2 & 05.3 offshore the continental shelf of Vietnam. The total investment capital of the project is USD149,318,329, equivalent to VND3,071,478,027,530, in which the capital contributions of joint venture parties are USD37,329,582, taking up 25% of its investment capital, the remaining is borrowed capital. In 2022, following the internal reorganization within the Yinson Holdings Berhad group, Yinson Holdings Berhad already transferred all shares in PTSC SEA to Yinson Production Capital Private Limited (a sub-subsidiary company of Yinson Holdings Berhad), accordingly, Yinson Holdings Berhad already transferred all their rights and obligations in PTSC SEA to Yinson Production Capital Private Limited under the agreement among PTSC, Yinson Holdings Berhad, Yinson Production Offshore Private Limited and Yinson Production Capital Private Limited. As at 31 December 2023 and 31 December 2022, the Corporation’s capital contribution in PTSC SEA is USD16,320,000, equivalent to VND340,800,232,500.
(v) PTSC Asia Pacific Private Limited (“PTSC AP”) is a jointly controlled venture company established by the Corporation and Yinson Holdings Berhad from 2012 under the Foreign Investment Certificate No. 561/BKHDT-DTRNN dated 19 October 2012 issued by the Ministry of Planning and Investment to contribute to investment capital in floating storage, exportation and processing of oil (FPSO “PTSC Lam Son”) for Lam Son Joint Operating Company (Lam Son JOC) rented for development services at Thang Long - Dong Do fields, Blocks 01/97 & 02/97, in the Cuu Long basin offshore Vietnam until 30 June 2017 . From 1 July 2017, Vietnam Oil and Gas Group/Petroleum Exploration and Production Corporation replaced, received rights and obligations of Lam Son JOC and continued to rent FPSO “PTSC Lam Son”. The total investment capital of the project is USD429,977,481, equivalent to VND9,113,372,709,795, in which, the capital contribution of joint venture parties is USD119,996,426, accounting for 27.9% of total investment capital. In 2018, the two joint venture parties reduced the capital contribution into PTSC AP from USD100,000,000 to USD60,000,000 at the same voting right and ownership. In 2022, following the internal reorganization within the Yinson Holdings Berhad group, Yinson Holdings Berhad already transferred all shares in PTSC AP to Yinson Production Capital Private Limited (a sub-subsidiary company of Yinson Holdings Berhad), accordingly, Yinson Holdings Berhad already transferred all their rights and obligations in PTSC AP to Yinson Production Capital Private Limited under the agreement among PTSC, Yinson Holdings Berhad, Yinson Production Offshore Private Limited and Yinson Production Capital Private Limited. As at 31 December 2023 and 31 December 2022, the Corporation’s contributed capital in PTSC AP is USD30,600,000 equivalent to VND641,415,780,000.
(vi) PetroVietnam Marine Shipyard Joint Stock Company is a joint stock company established under the Enterprise Registration Certificate No. 3500806844 dated 9 July 2007 issued by the Department of Planning and Investment of Ba Ria - Vung Tau Province with the registered charter capital of VND594,897,870,000. As at 31 December 2023 and 31 December 2022, the Corporation’s contributed capital at PetroVietnam Marine Shipyard Joint Stock Company is VND171,056,430,000, accounting for 28.75% of charter capital.
(vii) Thi Vai General Port Joint Stock Company (“Thi Vai General Port”) is a joint stock company established under the Enterprise Registration Certificate No. 3502259121 dated 21 July 2014 issued by the Department of Planning and Investment of Ba RiaVung Tau Province with the registered charter capital of VND60,000,000,000. According to Thi Vai General Port’s Enterprise Registration Certificate, PTSC Phu My Port Joint Stock Company - a subsidiary, holds 36% charter capital of Thi Vai General Port. Therefore, the Corporation indirectly owns 21.46% charter capital of Thi Vai General Port. Hence, Thi Vai General Port is an associate of the Corporation according to current prevailing accounting regulations.
(viii) Duyen Hai Petro Construction Investment Joint Stock Company (“Duyen Hai PVC”) is a joint stock company established under the initial Enterprise Registration Certificate No 0201093188 dated 2 July 2010 and 11th amendment dated 31 December 2019 issued by the Department of Planning and Investment of Hai Phong City with the registered charter capital of VND136,732,500,000. As at 31 December 2023 and 31 December 2022, Dinh Vu Petroleum Services Port Joint Stock Company, a subsidiary, holds 20.57% charter capital of Duyen Hai Petro Construction Investment Joint Stock Company. Therefore, The Corporate indirectly owns 10.49% charter capital and 20.57% voting rights of Duyen Hai Petro Construction Investment Joint Stock Company.
(ii) Investments in other entities
Details of investments in other entities are as follows:
1 2 Name Nhon Trach Shipyard Joint Stock Company (i)
Duyen Hai Petro Construction Investment Joint Stock Company (ii)
(819,246,567) (13,348,151,969) (14,167,398,536)
(i) As at 31 December 2023 and 31 December 2022, the Corporate’s ownership and voting rights percentage in Nhon Trach Shipyard Joint Stock Company is 1.49%.
(ii) As of December 31, 2023, the Corporation reclassified the investment in Duyen Hai Petroleum Construction Investment Joint Stock Company into an investment in an associate.
(*) As at 31 December 2023 and 31 December 2022, the Corporation had not determined the fair value of these investments for disclosure in the consolidated financial statements because they do not have listed prices. The fair value of such investments may be different from their book value.
Movement of provision for diminution in value of long-term investments during the year was as follows:
Beginning of year
Reversal of provisions (Note 35)
Written-off
End of year 14,167,398,536 (12,950,479,996)1,216,918,540 24,758,595,673 (61,197,137) (10,530,000,000) 14,167,398,536 2023 VND 2022 VND
Third parties
Orsted Taiwan Limited
TPSK Consortium
Hanwha Ocean Company Limited
Sea Energy Marine Services LLC
Technip Geoproduction (M) SDN BHD
Operating Office of Premier Oil Vietnam Offshore B.V. in Ho Chi Minh City
Anh Phat Investment Construction - Trading Joint Stock Company
Enterprize Energy Private Limited
North Oil Company
Nam Song Hau Trading Investing Petroleum Joint Stock Company
Allianz Marine Services LLC
Baltec IES Proprietary Limited
Thien Nam Subsea Services Joint Stock Company
Japan Vietnam Petroleum Company Limited
Operating Office of Idemitsu Gas Production (Vietnam) Co., Ltd. in Ho Chi Minh City
GE Power Systems Vietnam Company Limited
Hyundai Heavies Industries
EGL Waste Services Proprietary Company
Others
Related parties (Note 41(b))
646,011,560,208 86,827,056,306
82,280,188,320
43,741,227,533 42,547,195,518
40,014,194,636 37,879,899,557 35,677,041,656 35,289,943,530 35,121,129,014 32,394,204,662 30,836,355,323
30,212,528,747
29,864,955,826
29,074,434,426
26,230,276,719 501,357,485551,371,315,917 1,815,874,865,383 1,295,235,230,321 3,111,110,095,704 1,481,763,785,858 2,659,505,006,690 4,141,268,792,548255,380,294,767 63,475,215,77242,344,509,025 46,479,111,718 1,469,758,015 16,252,738,735 226,188,814,534 19,191,122,405 23,228,572,500 10,713,013,65723,910,629,839 101,727,334,015 29,079,843,417 42,978,194,772 23,291,802,936 556,052,829,751
As at 31 December 2023 and as at 31 December 2022, the balances of short-term trade accounts receivable which were past due were made provision of doubtful debts as presented in Note 9.
Third parties
Vietnam Machinery Installation Corporation
CN Company Limited
IQIP Singapore Private Limited
Dai Dung Metallic Manufacture Constructuon and Trade Corporation
SCI E&C Joint Stock Company
Kocks Ardelt Kranbau GmbH
My Dung Mechanical Company Limited
Others
Related parties (Note 41(b)) 100,613,950,134 30,937,500,000 24,478,851,280 22,192,268,511 13,588,401,409204,058,179,199 395,869,150,533 33,758,107,623 429,627,258,156 302,688,068,387 3,280,079,763 305,968,148,150 100,613,950,134-13,588,401,409 44,816,994,964 20,945,574,000 122,723,147,880
As at 31 December 2023 and 31 December 2022, there was no balances of short-term prepayments to suppliers was past due or was past due but doubtful.
RECEIVABLES/PAYABLES
Construction contracts-in-progress receivables
Construction contracts-in-progress payables
In which:
Accumulated contract costs incurred plus recognized profits less recognized losses
Details of construction contracts-in-progress receivables/payable by projects are as follows:
Receivables
Sao Vang - Dai Nguyet pipeline project
LNG Thi Vai warehosue EPC project
Vung Ro petroleum storage project
NPK project
Amount of progress billings 126,550,860,677 (237,901,633,014) (111,350,772,337) 66,657,433,448 52,428,513,687 4,153,400,546 3,311,512,996 126,550,860,677 10,918,593,697,194 (11,029,944,469,531) (111,350,772,337) 81,454,247,556 (17,741,336,460) 63,712,911,096 66,657,433,451 11,485,301,1093,311,512,996 81,454,247,556 8,101,877,933,693 (8,038,165,022,597) 63,712,911,096 (As restated - Note 46) (As restated - Note 46)
Payables
CHW2204 project
Thi Vai LPG tank project
Contract for “Provision of engineering, procurement, construction and installation of the central production platform, living quarters platform, flare tower and bridges” of the Block B - O Mon gas project
Contract for Provision of engineering, procurement, construction of Hai Phong 2 project
Thi Vai LPG tank project
202,267,437,762 24,951,439,815 6,978,962,420 3,703,793,017237,901,633,014--17,741,336,460 17,741,336,460
(a) Short-term
Accrued revenue from rendering of service
TPSK Consortium
Hanwha Ocean Company Limited
T. Y. Lin International
Nghi Son Refining and Petrochemical Company Limited
Operating Office of Premier Oil Vietnam Offshore B.V. in Ho Chi Minh City
Hibiscus Oil & Gas Malaysia Limited
Sao Vang - Dai Nguyet pipeline project
Technip Geoproduction (M) SDN BHD
Others
Accrued interest income
Deposits
Advances
VAT not yet deducted
Receivables from contract penalties
Others
2023 2022
VND (As restated - Note 46)
93,695,215,141
639,548,337,836 8,967,426,540 42,917,553,00024,394,736,43622,423,561,125 204,294,220,794 17,251,709,860 71,401,928,881 79,626,280,883 39,472,889,833 14,689,285,135 35,031,435,403 30,702,486,737 74,555,042,524 665,728,557,151
60,944,775,800
49,143,186,400
43,407,857,358
21,756,904,847
6,753,280,800-
101,561,436,764
97,014,733,588
43,935,741,123
12,554,832,780
11,244,283,209 -
97,536,090,026
(1,278,756,902) (1,278,756,902)
(539,678,779) (539,678,779)
As at 31 December 2023 and 31 December 2022, there was no balances of short-term prepayments to suppliers was past due or was past due but doubtful.
Deposits Others 111,243,427,960 11,540,550,273
Details of other receivables by type of customers are as follows:
Short-term
Third parties
Related parties (Note 41(b))
122,783,978,233 596,485,037,771 69,243,519,380 665,728,557,151 123,337,160,496 (b) Long-term
Long-term Third parties
122,783,978,233 111,796,610,223 11,540,550,273 123,337,160,496
547,701,565,171 91,846,772,665
639,548,337,836
Short-term trade account receivable
Third parties
Sai Gon Offshore Fabrication and Engineering Limited
Marsol Offshore Construction LLC
Allianz Marine Services LLC
Sapura Offshore Sdn Bhd
Others
Related parties
PetroVietnam Domestic Exploration Production Operating Company Limited
Nghi Son Refinery and Petrochemical Complex Project Management Board
PetroVietnam Exploration Production Corporation Limited
PetroVietnam Overseas Exploration Production Operating Company Limited
Others
Other short-term receivables
Third parties
Related parties
13,531,918,730 7,554,500,377 32,394,204,662 11,907,196,056 41,062,863,197 106,450,683,022 Recoverable amount VND (13,531,918,730) (7,554,500,377) (7,447,456,222) (7,440,382,109) (25,196,534,690) (61,170,792,128)24,946,748,440 4,466,813,947 15,866,328,507 45,279,890,894 Over 3 years Over 3 years Over 6 months - Under 1 year Over 1 year - Under 3 years Over 6 months - Over 3 years
23,923,058,448 15,098,497,832 15,559,869,313 4,949,073,120 2,066,454,971
61,596,953,684
(23,394,926,395) (15,098,497,832) (14,903,705,371) (4,949,073,120) (1,035,142,000) (59,381,344,718) 528,132,053656,163,9421,031,312,971 2,215,608,966
Number of overdue days
Duyen Hai Petrovietnam Investment and Construction Joint Stock Company 20,260,800 2,986,746,685 171,054,644,191 (1,519,560) (1,277,237,342) (121,830,893,748) 18,741,240 1,709,509,343 49,223,750,443
Over 6 months -
Short-term trade account receivable
Third parties
Berlanga Myanmar Private Limited
Sai Gon Offshore Fabrication and Engineering Limited
Marsol Offshore Construction L.L.C
Others
(As restated - Note 46) (As restated - Note 46) Recoverable amount VND Number of overdue days Cost VND Provision VND
13,531,918,730 11,640,833,613
7,554,500,377 34,897,895,336 67,625,148,056 (13,531,918,730) (11,640,833,613) (7,554,500,377) (22,250,813,658) (54,978,066,378)-12,647,081,678 12,647,081,678
Related parties
PetroVietnam Fertilizer and Chemicals Corporation
PetroVietnam Domestic Exploration Production Operating Company Limited
PetroVietnam Exploration Production Corporation Limited
Nghi Son Refinery and Petrochemical Complex Project Management Board
Others
Other short-term receivables
Operating Office of Eni Vietnam B.V. in Ho Chi Minh City
Related parties
Duyen Hai Petrovietnam Investment and Construction Joint Stock Company
52,771,243,442
24,204,947,715
16,014,782,604
15,098,497,832
44,521,076,246
152,610,547,839
21,424,354,455 431,474,670 1,402,226,71937,460,677,765 60,718,733,609 26,723,500 3,341,560,613
(31,346,888,987) (23,773,473,045) (14,612,555,885) (15,098,497,832) (7,060,398,481) (91,891,814,230)
-
223,603,980,008 76,194,420,621 (147,409,559,387) (8,017,050) (531,661,729) 18,706,450 2,809,898,884
6 months - Under 1 year
6 months - Over 2 years
(a) Inventories
Goods in transit
Raw materials
Tools and supplies
Work in progress (*)
Merchandise
30,033,493,450 381,240,156,057 33,020,540,147 1,030,216,960,605 1,841,628,412 1,476,352,778,671 4,575,537,419 487,166,345,056 33,962,050,503 561,221,230,997 4,685,427,237 1,091,610,591,212
(*) Work in progress represents the cost incurred in relation to services and projects as below:
CHW2204 project
Hai Long OSS project
Gallaf project - Phase 3
Southern Petrochemical complex project
GE structural steel fabrication project
Seismic exploration and underground construction services
Long Phu 1 Thermal Power Plant project
Subsea 7 project
Steel structure processing project for Baltec
Gallaf project - Phase 1
LNG Thi Vai warehouse EPC project
Designing, purchasing and manufacturing for SAT DSV campaign - Thailand project
Mai Dam - Hau Giang petroleum warehouse project
Others
Movements of provision for decline in value of inventories during the year is as follows:
Beginning of year
Increase/(reversal)
End of year
(As restated - Note 46) (As restated - Note 46)
(2,624,513,034) (3,323,952,893)(5,948,465,927)(1,950,254,388)-(1,950,254,388)
373,234,374,702 182,083,967,667 158,269,506,150 129,490,061,107 46,646,412,811 22,263,868,589 19,418,265,705 16,144,347,613 15,642,396,878-67,023,759,383 1,950,254,388 3,998,211,53928,591,199,315 65,128,453,323 133,706,746,341 55,352,712,97429,495,548,93925,274,415,677 73,661,271,292 25,700,524,450 19,850,078,896 16,760,417,816 87,699,861,974 2,191,166,161 (240,911,773) 561,221,230,997 1,950,254,388 1,030,216,960,605 5,948,465,927
(b) Long-term substituted equipment, supplies and spare parts
Long-term substituted equipment, supplies and spare parts represent the value of substituted equipment, supplies and spare parts used for maintenance of vehicles whose plans is more than 12 months.
(a) Short-term
Insurance expenses
Land and infrastructure rental expenses
Tools and supplies
Equipment processing costs for geological survey activities
Others
(b) Long-term
Office rental at Head Office, No. 1-5 Le Duan Street
Repair and maintenance costs
Land and infrastructure rental expenses
Land rental at Dinh Vu port
Site clearance cost at Son Tra port
Tools and supplies
Dredging cost at Vung Tau port
Others
(As restated - Note 46)
14,968,490,542 13,309,033,744 10,784,827,997 3,362,705,011 8,374,411,122 256,213,823,262 147,565,169,195 120,207,751,293 99,188,010,185 85,137,857,742 75,590,101,937 9,118,803,679 26,511,150,509 15,007,057,413 4,519,129,429 11,865,749,7857,186,097,017 263,185,980,666 109,597,249,468 6,457,544,100 103,454,161,157 87,625,978,026 42,809,607,265 13,935,073,219 20,272,827,930 38,578,033,644 647,338,421,831 50,799,468,416 819,532,667,802
992,693,738,598 234,819,754,830
(13,508,118,349)
495,021,150,547
Machinery and equipment VND (a) Tangible fixed assets
Historical cost
As at 1 January 2023 (As restated - Note 46)
New purchases
Transfers from construction in progress (Note 15(b))
Disposals
Reclassification
Reclassification
Others decreases
As at 31 December 2023
Accumulated depreciation
As at 1 January 2023 (As restated - Note 46)
Charge for the year
Disposals
Reclassification
Reclassification
Others decreases
As at 31 December 2023
Net book value
As at 1 January 2023 (As restated - Note 46)
As at 31 December 2023
Buildings and structures VND 2,705,062,811,956 263,969,299,274 36,571,580,798 (4,538,232,464)(1,177,189,909) 2,999,888,269,655 2,010,563,806,184 163,098,505,521 (4,538,232,464)(126,623,200) (1,060,800,878) 2,167,936,655,163 694,499,005,772 831,951,614,492
3,597,714,504,167 2,019,102,486 343,853,188,263 (4,640,891,033) 67,837,570,080(394,790,190)
4,006,388,683,773 2,530,657,798,114 96,943,771,568 (4,640,891,033) 7,878,379,281(394,790,190) 2,630,444,267,740 1,067,056,706,053 1,375,944,416,033
The historical cost of fully depreciated tangible fixed assets but still in use as at 31 December 2023 was VND 6,933 billion (as at 31 December 2022: VND6,513 billion).
Vehicles and transmission equipment VND
Office equipment VND
Others VND
Total VND
5,723,998,208,391 101,943,280,309 5,879,987,992 (10,929,415,052)(352,039,957)
5,820,540,021,683
245,731,225,218 28,940,635,398 1,089,125,000 (5,959,010,365)(33,898,280)
269,768,076,971
4,628,963,453,515
192,654,483,493 (10,929,415,052)(84,703,086) (219,288,841)
4,810,384,530,029
1,095,034,754,876
1,010,155,491,654
209,987,678,933
18,458,683,627 (5,959,010,365)211,326,538 (33,898,268)
222,664,780,465 35,743,546,285
47,103,296,506
136,694,884,897 43,387,322,863-(67,837,570,080) -
112,244,637,680 47,710,711,188 9,570,696,263(7,878,379,533)49,403,027,918 88,984,173,709 62,841,609,762
12,409,201,634,629 440,259,640,330 387,393,882,053 (26,067,548,914) 67,837,570,080 (67,837,570,080) (1,957,918,336) 13,208,829,689,762 9,427,883,447,934 480,726,140,472 (26,067,548,914) 7,878,379,281 (7,878,379,281) (1,708,778,177) 9,880,833,261,315 2,981,318,186,695 3,327,996,428,447
As at 31 December 2023, the historical cost of tangible fixed assets formed from borrowings pledged as collateral assets for the borrowings of the Corporation (as presented in Note 23) is VND1,920 billion (as at 31 December 2022: VND1,772 billion).
(b) Intangible fixed assets
Historical cost
As at 1 January 2023 New purchases
As at 31 December 2023
Accumulated amortisation
As at 1 January 2023 Charge for the year
As at 31 December 2023
Net book value
As at 1 January 2023
As at 31 December 2023 51,264,099,02951,264,099,029 432,008,650 26,204,400 458,213,050 50,832,090,379 50,805,885,979 134,575,703,835 3,650,359,000 138,226,062,835 118,602,160,201 7,363,294,829 125,965,455,030 15,973,543,634 12,260,607,805 2,159,261,714 261,020,000 2,420,281,714 1,945,928,388 155,219,093 2,101,147,481 213,333,326 319,134,233 187,999,064,578 3,911,379,000 191,910,443,578 120,980,097,239 7,544,718,322 128,524,815,561 67,018,967,339 63,385,628,017
The historical cost of fully amortised intangible fixed assets but still in use as at 31 December 2023 was VND117 billion (as at 31 December 2022: VND111 billion).
Details of investment properties are presented as follows:
Investment properties hold for leasing:
Infrastructure project - 39.8 hectare
Infrastructure project - 23 hectare
Investment properties mainly include:
93,416,181,780 70,978,779,135 164,394,960,915 96,923,514,168 72,206,718,603 169,130,232,771
• Infrastructure Project - 39.8 square hectare with historical cost of VND131,881,668,267 being depreciated under straight line method over rental period of 48 years; and
• Infrastructure Project - 23 square hectare with historical cost of VND97,399,118,187 being depreciated under straight line method over rental period of 49 years.
For the year ended 31 December 2023 and 31 December 2022 revenue incurred from investment properties are VND5,203,799,784. Direct expenses incurred from investment properties leasing for the year ended 31 December 2023 and 31 December 2023 (including tools and supplies, utilities, management fee) are VND4,735,271,856.
Movement of investment properties during the year is as follows:
Historical cost
As at 1 January 2023 and 31 December 2023
Accumulated depreciation
As at 1 January 2023
Charge for the year
As at 31 December 2023
Net book value
As at 1 January 2023
As at 31 December 2023 Infrastructure VND
As at 31 December 2023, The Corporation does not have sufficient information of similar investment properties as the basis to compare fair value of these investment properties so the fair value is not presented on consolidated financial statements. 229,280,786,454 60,150,553,683 4,735,271,856 64,885,825,539 169,130,232,771 164,394,960,915
Details of long-term work-in-progress are as follows:
(a) Long-term work in progress 301,308,440,489
Long Phu 1 Thermal Power Plant project (i)
Bio Ethanol project (ii)
Long-term work-in-progress of Long Phu 1 Thermal Power Plant Project represents the foreign design costs performed by Black & Veatch International (“the Contractor”). By the time of preparing the consolidated financial statements, the Corporation and the investor have not finalized the value of this cost. The Corporation has assessed the cost of long-term work-in-progress in the Inventory Assessment Minutes No. 07/BB-PTSCLP of the Inventory Assessment Council – Work-in-progress established under Decision No.0934/QD-PTSCLP dated 21 December 2017 and made provision for net realizable value with total amount of VND 301,308,440,489.
Long-term work-in-progress of Bio Ethanol Project represents the work-in-progress of Dung Quat Bio-Ethanol Fuel Factory Project. The construction of infrastructure has been completed and handed over to its investor - Vietnam Central Biofuels Joint Stock Company. By the reporting date of those consolidated financial statements, both parties are working to finalize the value of the contract. As at 31 December 2022, the balance of long-term work-in-progress of VND69,815,950,718, equivalent to 5% of contract value, will be recognized in the income consolidated financial statements after completion of finalisation and remaining revenue will be recognized at the same time. Accordingly, the recoverable value will depend on the finalisation of the contract. By the time of the consolidated financial statements, the Corporation and the investor have not completed the finalisation of the contract.
(b) Construction in progress
Details of construction in progress are presented as follows:
Equipment, systems for blasting and painting workshops of renewable energy project
Construction of marine service base at Sao Mai - Ben Dinh port
Building for operation and expansion of Nghi Son port project
Dung Quat I Berth No.3 Project, Quang Ngai province
Workshop 2 at POS
Others
156,531,118,457 38,472,788,885 34,271,779,681 15,772,528,297 12,109,023,488 46,082,386,131 303,239,624,93939,077,291,806 14,205,945,582 1,247,446,18947,612,374,623 102,143,058,200
Movement in construction in progress during the year is as follows:
Beginning of year
New purchases
Transfers to tangbile fixed assets (Note 13(a))
Transfers to intangbile fixed assets
End of year
102,143,058,200 588,490,448,792 (387,393,882,053)303,239,624,939 113,954,359,628 55,290,544,588 (14,597,966,987) (52,503,879,029) 102,143,058,200
Details of deferred income tax are presented as follows:
Deferred tax assets:
Deferred tax assets to be recovered after more than 12 months
Deferred tax liabilities:
Deferred tax liabilities to be recovered after more than 12 months
Movements in the deferred income tax, taking into consideration the offsetting of balances within the same tax jurisdiction during the year, were as follows:
Deferred tax liabilities to be recovered within 12 months 2023 VND 2022 VND 277,488,713,037 (677,559,350,681) (17,744,870,116) (695,304,220,797) (417,815,507,760) 344,735,812,309 (716,322,166,782) (47,934,959,141) (764,257,125,923) (419,521,313,614) (As restated - Note 46) (As restated - Note 46)
Deferred income tax assets
Deferred income tax liabilities
Beginning of year
Charge to consolidated income statement
End of year
In which: Deferred income tax assets Deferred income tax liabilities 344.735.812.309 (764.257.125.923) (419.521.313.614) 1.705.805.854 (417.815.507.760) 277.488.713.037 (695.304.220.797) 477.030.804.692 (832.810.743.790) (355.779.939.098) (63.741.374.516) (419.521.313.614) 344.735.812.309 (764.257.125.923) 2023 VND 2022 VND
Deferred income tax mainly arises from the temporary differences of the following items:
Accruals and provisions
Tax losses not yet utilised
Profit sharing from associates and joint ventures
Reversal of provision for investments
Unrealised foreign exchange difference
Others 275,579,615,645(490,547,865,083) (187,011,485,598) (10,396,068,488) (5,439,704,236) (417,815,507,760) 270,077,209,775 33,732,254,026 (525,118,026,591) (191,204,140,191) (3,138,276,162) (3,870,334,471) (419,521,313,614) 2023 VND 2022 VND
The Corporation uses tax rate of 20% to determine deferred income tax.
(As restated - Note 46)
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
The Corporation’s tax losses can be carried forward to offset against future taxable income for a maximum period of no more than five consecutive years from the year right after the year in which the loss was incurred. The actual amount of tax losses that can be carried forward may be different from the figures presented. The estimated amount of tax losses available for offset against the Corporation’s future taxable income is:
(154,886,544,996)(1,671,157,244) (99,931,658,676)
137,560,516,323 149,826,716,178 9,008,338 76,938,526,330 27,832,215,689 Loss carried forward VND
Third parties
CGG Services SA Private Limited
CGG Veritas Services (Singapore) Private Limited
CGG Marine B.V.
Thien Nam Subsea Services Joint Stock Company
Genesis Marine Services W.L.L
Velocity Energy Private Limited
Vietnam Machinery Installation Corporation
AH&M Energy Services Private Limited
Hoang Son Technology Trading Company Limited
Shelf Subsea Solutions Private Limited
Hai Duong Petroleum and Marine Corporation
Asia Investment and Asset Management JSC (Ashico)
SCI E&C Joint Stock Company
Thien Nam Offshore Joint Stock Company
Hyundai Corporation
Palfinger Marine Norway AS
Petroleum Technology Company W.L.L
North East Sea Petroleum Transport Services Joint Stock Company
Sai Gon Shipyard Company Limited
Toan Thang Engineering Corporation
Kinergy Limited
Others
Related parties (Note 41(b)
121,174,418,752
116,648,812,533
91,702,873,865
82,383,474,120
75,150,504,826
72,366,793,323
59,836,450,988
59,086,287,434
57,935,629,048
54,717,656,406
48,306,356,226
47,054,507,927
45,772,580,686
41,659,766,948
40,273,727,736
35,665,410,000
22,817,174,497
14,710,275,000
11,359,913,266
8,907,585,630
656,133,898
1,923,133,881,449
3,031,320,214,558
121,174,418,752
116,648,812,533
91,702,873,865
82,383,474,120
75,150,504,826
72,366,793,323
59,836,450,988
59,086,287,434
57,935,629,048
54,717,656,406
48,306,356,226
47,054,507,927
45,772,580,686
41,659,766,948
40,273,727,736
35,665,410,000
22,817,174,497
14,710,275,000
11,359,913,266
8,907,585,630
656,133,898 1,923,133,881,449
55,455,621,084 5,457,088,024 73,818,277,611 99,000,847,583
49,357,246,410 45,772,580,686 50,212,235,69462,038,525,499 41,563,025,000 42,062,400,000 44,118,148,594 74,365,505,885 2,018,384,175,478
117,750,571,539 113,352,838,715 89,111,760,721 51,147,820,449439,549,116,086 59,992,827,687 55,455,621,084 5,457,088,024 73,818,277,611 99,000,847,583 49,357,246,410 45,772,580,686 50,212,235,69462,038,525,499 41,563,025,000 42,062,400,000 44,118,148,594 74,365,505,885 2,018,384,175,478
481,593,285,786 3,512,913,500,344 3,031,320,214,558 481,593,285,786 3,512,913,500,344 3,532,510,612,745 1,768,640,620,95 5,301,151,233,703 3,532,510,612,745 1,768,640,620,958 5,301,151,233,703 117,750,571,539 113,352,838,715 89,111,760,721 51,147,820,449439,549,116,086 59,992,827,687
As at 31 December 2023 and 31 December 2022, the Board of Management believed that the Corporation have sufficient finance to be able to fully repay all short-term trade accounts payable when they fall due.
(a) Short-term
Third parties
Elektrownia Wiatrowa Baltica
Yunnan (HongKong) Logistics Development Limited
Phu bia Mining Limited
Sea Energy Marine Services LLC
Vientiane Hongshi Saythirath Cement Company Limited
Anh Phat Investment Construction - Trading Joint Stock Company
The General Oil Department - The General Department of Logistics
Others
(b) Long-term
16,117,443,493 13,304,688,332 10,229,490,000 6,107,570,056 3,482,092,66422,666,477,18016,117,443,493 13,819,167,1086,107,570,056 20,878,500,000 23,804,431,928 22,166,271,431
Bên liên quan (Thuyết minh 41(b)) Related parties (Note 41(b)) 157,646,148,458 94,097,700,797 251,743,849,255 839,154,706,766 102,893,384,016 110,788,942,426 213,682,326,442 781,044,054,435
Long-term advances from customers is mainly comprised of the value of:
• The advances from Long Phu 1 Power Plant Project Management Board for the Long Phu 1 Thermal Plant project with the balance as at 31 December 2023 and 31 December 2022 are VND781,044,054,435 (Note 41(b)). By the time of those consolidated financial statements, the Corporation and the investor have been working for finalisation minutes, therefore, the netting-off of receivable and payable balance of the investor has not been done yet; and.
• The advance from PetroVietnam Gas Joint Stock Corporation for Thi Vai LPG Tank Project with the balance as at 31 December 2023 of VND58,110,652,331 (Note 41(b)).
(a) Receivables
Personal income tax (“PIT”) overpaid CIT overpaid
Others overpaid
(b) Payables
1,450,906,713 219,756,995 484,299,938 2,154,963,646 79,341,778,358 42,856,025,935 6,570,922,007 2,581,076,404 131,349,802,704 1,880,109,440 580,253,767 484,299,938 2,944,663,145 33,068,706,764 16,972,967,433 34,528,659,669 26,369,861,503 110,940,195,369 (As restated - Note 46)
(Continued)
Movements of taxes and other receivables from/payables to the State during the year are as follows: CIT PIT
VAT on domestic goods
VAT on import goods
Others
In which:
Tax and other receivables from the State
Tax and other payables to the State
Payable during the year VND As at 1.1.2023 VND Payment during the year VND As at 31.12.2023 VND (As restated - Note 46)
32,488,452,997 15,092,857,993 34,050,459,80526,363,761,429 107,995,532,224 2,944,663,145 110,940,195,369 219,005,912,674 229,579,577,695 118,953,281,831 21,691,430,235 254,149,730,639 843,379,933,074 (172,372,344,308) (203,267,316,466) (146,911,019,493) (21,691,430,235) (277,938,515,738) (822,180,626,240) 79,122,021,363 41,405,119,222 6,092,722,1432,574,976,330 129,194,839,058 2,154,963,646 131,349,802,704
(*) The VAT payable is offsetted with VAT to be reclaimed as disclosed in Note 12.
Cost of CHW2204 project
Cost of Gallaf project - Phase 3
Cost of Thi Vai LPG tank project
Cost of Southern Petrochemical complex project
Cost of Sao Vang Dai Nguyet pipeline project
Cost of Fengmiao Offshore Windfarm project
Cost of LNG Thi Vai warehouse EPC project
Cost of Hai Long OSS project
Cost of Dai Hung 3 underground cable supply project
Cost of Dung Quat Bio Ethanol project
Contract for “Provision of engineering, procurement, construction and installation of the central production platform, living quarters platform, flare tower and bridges” Block B - O Mon gas project
Cost of SHWE Phase 3 Jacket project
Cost of DBN PWM project
Cost of yard rental at Nghi Son
Cost of supply technology service vessels
Cost of operation of FPSO Ruby II, FPSO Lam Son, FSO Bien Dong 01 and FSO Golden Star
Cost of building rental at Petro Hotel
Cost of temporary workshop for renewable project
Others
742,849,073,304 238,038,698,968 105,921,430,351 80,727,575,652 67,977,437,198 44,595,878,602 33,049,292,810 29,274,867,889 27,726,930,636 23,850,106,277 2,786,136,122 218,987,639 50,000,000,000 30,368,974,217 26,181,404,997 20,098,000,232 40,804,102,668 142,936,997,612 1,777,032,496,20171,405,465,369162,402,290,044 112,369,105,60036,282,719,944 207,594,771,16227,726,930,63632,016,538,543 34,872,836,686 45,000,000,000 20,942,243,973 11,200,588,561 10,049,000,000122,882,081,921 894,744,572,439 (As restated - Note 46)
(a) Short-term
Cho thuê cơ sở hạ tầng tại Sao Mai Bến Đình (i)
Cho thuê văn phòng (ii)
Khác
(b) Long-term
Infrastructure leasing services at Sao Mai Ben Dinh (i)
Office leasing (ii)
5,203,799,784 2,752,200,000 2,280,505,000 10,236,504,784 175,460,564,144 8,671,800,000 184,132,364,144 180,664,363,928 9,823,800,000 190,488,163,928 5,203,799,784 2,752,200,000 2,751,454,292 10,707,454,076
In which:
(i) Unearned revenue for leasing of infrastructure Sao Mai - Ben Dinh represents the advanced amount received for leasing the infrastructure and land at Infrastructure Project - 39.8 square hectare and Infrastructure Project – 23 square hectare of Sao Mai - Ben Dinh Marine Petroleum Services Base in Vung Tau City. This unearned revenue is allocated into the consolidated financial statements with under the straight-line method over the rental period of 48 years and 49 years, respectively.
(ii) Office leasing represents the amount of the advance payment for office leasing at Petro Hotel Company Limited which would be allocated to the Corporation’s results of operation for the leasing period ranging from 10 to 15 years.
(a) Short-term
Vietnam Shipbuilding Industry Corporation (i)
Salary payables
Dividend payables (ii)
Fines penalty
Compulsory insurance
Others
(i) Payable to Vietnam Shipbuilding Industry Corporation represents the last payment for the project of building FSO5, in which, the Corporation is the project’s investor and Vietnam Shipbuilding Industry Corporation is the constructor. As at the date of the consolidated financial statements, both parties are carrying out the procedures to finalize the contract for payment of this amount.
(ii) The dividend payable to shareholders is the dividend of previous years that the shareholders have not deposited and have not carried out the procedures to receive.
Details of other short-term other payables by type of vendors are as follows:
Third parties
Related parties (Note 41(b))
(b) Long-term
Other payables
Related parties (Note 41(b))
443,615,652,308 144,968,759,384 15,837,417,694 12,199,370,887 4,540,046,728 29,060,749,760 650,221,996,761 634,602,364,264 15,619,632,497 650,221,996,761 159,396,385 69,473,052,000 69,632,448,385 430,146,510,262 39,979,099,469 17,990,739,344 24,483,325,243 2,044,665,969 79,281,126,645 593,925,466,932 560,671,556,357 33,253,910,575 593,925,466,932 226,063,385 69,473,052,000 69,699,115,385
Other long-term payables mainly represent the deposit of the Branch of PetroVietnam Gas Corporation – Joint Stock Company – Gas Trading Company for the supply of vessels and operation services of LPG storage vessels in the Northern region in accordance with the Contract No. 36/HDKN/2021/KDK-PTSC/04 dated 31 March 2021 with total amount of VND 69,473,052,000.
(b) Short-term
Details of short-term borrowings of the Corporation during the year are as follows: As at 1.1.2023
Drawdown during the period
Short-term bank loans (*)
Current portion of long-term bank loans (Note 23(b))
Borrowings from third party (**)113,238,604,596 638,969,900,694 752,208,505,290 426,807,319,659426,807,319,659
(*) The Corporation’s short-term loans represent the value of 3 unsecured loans with the Joint Stock Commercial Bank for Investment and Development of Vietnam with interest rates ranging from 2.3% to 2.4% per annum. The purpose of the Corporation’s short-term loans is mainly to supplement working capital.
of long-term borrowings
(36,890,315,957) (126,455,131,935)
(163,345,447,892) 389,917,003,702 128,626,172,299 657,549,303,622 1,176,092,479,623
(**) This is borrowing in USD of PTSC CGGV from CGG Holding B.V. (formerly known as, “CGGVeritas Services Holding BV”) represents the difference between the capital amount that CGG Holding B.V. should have been contributed to PTSC CGGV, corresponding to 49% of PTSC CGGV’s charter capital, and the value of CGG Holding B.V.’s contributed assets to PTSC CGGV at the time of establishment in 2012, the term is 60 months. This borrowing is free of interest, arrangement fee, commissions, or any other related fees. The borrowing will be matured on 27 August 2024 according to Appendix K agreed and singed by both parties on 4 January 2024. The borrowing is guaranteed by parent Company for liabilities of PTSC CGGV equivalent to 51% of this borrowing balance.
(b) Long-term
(*) Long-term borrowings represent 8 credit facilities from commercial banks in Vietnam, in which:
• Credit facility 1 is in VND with the credit limit of VND65 billion and will be matured in 120 months since 2017;
• Credit facility 2 is in VND with the credit limit of VND675 billion and will be matured in 120 months since 2018;
• Credit facility 3 is in VND with the credit limit of VND70 billion and will be matured in 84 months since 2020;
• Credit facility 4 is in VND with the credit limit of VND692 billion and will be matured in 96 months since 2021;
• Credit facility 5 is in VND with the credit limit of VND19 billion and will be matured in 84 months since 2022;
• Credit facility 6 is in VND with the credit limit of VND90 billion and will be matured in 84 months since 2022; and
• Credit facility 7 is in VND with the credit limit of VND56 billion and will be matured in 60 months since 2023
The interest of long-term borrowings in VND ranged from 7.43% to 11.5% per annum for the year ended 31 December 2022 (year 2022: from 5.57% to 12.17% per annum).
The Corporation used assets formed these long-term borrowings as its mortgaged assets.
Current portion of long-term borrowings
Repaid during the period
(141,842,699,638)
As at 31.12.2023
563,921,256,799
(b) Long-term (Continued)
The purpose of the long-term borrowings is to invest in long-term assets such as supply bases, service vessels, specialized equipment used in petroleum technical services.
The repayment schedule of borrowings is as follows:
Within one year
In the second year
In the third to fifth year
After five years 1,176,092,479,623 128,626,172,297 372,047,900,736 63,247,183,766 1,740,013,736,422 752,208,505,290 114,955,708,297 343,370,223,565 165,439,535,339 1,375,973,972,491
(a) Short-term
Provision of operation and maintenance of FPSO Lam Son (i)
Warranty provision for construction contracts (ii):
Gallaf project - Phase 1
Sao Vang Dai Nguyet project
NH3 project
Provision of periodic overhaul of service vessels (iii)
Others6,305,096,52037,500,000,000 1,371,102,047 45,176,198,567 41,579,866,00110,146,140,249 702,778,956 11,000,000,000 5,988,334,826 69,417,120,032 (As restated - Note 46)
(b) Long-term
Warranty provision for construction contracts (ii):
Sao Vang Dai Nguyet project
Gallaf project - Phase 1
Gallaf project - Phase 3
Southern Petrochemical complex project
LNG Thi Vai warehouse EPC project
DBN PWM project
Hai Long OSS project
SHWE Phase 3 Jacket project
Sao Vang - Dai Nguyet pipeline project
Su Tu Trang Fullfield project
Other projects
Provision of period overhaul of service vessels and barges (iii) 768,792,369,661 245,081,072,773 187,525,203,540 83,929,010,732 56,930,443,865 36,808,256,111 21,137,116,411 19,209,645,1461,456,178,993 33,982,898,645 1,454,852,195,877 660,337,559,260 251,386,169,293 100,664,990,07248,629,182,11926,618,411,932 14,564,674,921 66,621,273,873 32,750,000,000 22,916,692,891 18,249,552,279 1,242,738,506,640 (As restated - Note 46)
(i) Provision for operation and maintenance for FPSO Lam Son mainly represents the value that the Corporation may be payable to Petrovietnam Exploration and Development Corporation (“PVEP”) in relation to the Termination Agreement for the contract signed between the Corporation and Lam Son Joint Operating Company (“Lam Son JOC”), a joint venture between PVEP and Petronas. As at 31 December 2023, the Corporation had use this provision to clear the payable with PVEP follow the Note 38.
(ii) Warranty provision for construction contracts is made for warranty obligations according to the terms and conditions of EPC service contracts with customers, at 1% - 5% of the contract value.
(iii) Provisions for periodic overhaul of service vessels and barges represents the provision made annually based on the approved budget cost until the year when the overhaul is expected to occur. In the year when the overhaul occurs, if the actual overhaul cost is greater than the approved budget cost or vice versa, the difference is recorded in the consolidated income statement of respective accounting period.
Beginning of year
Appropriation from undistributed earnings (Note 28)
Utilisation
End of year
606,277,884,458 314,028,638,878 (297,075,940,620) 623,230,582,716 561,376,579,143 284,155,299,404 (239,253,994,089) 606,277,884,458
Beginning of year
Appropriation
Fund utilisation
Reversal of unused fund
End of year
5,560,621,840 2,065,400,000 (2,843,861,561)4,782,160,279 8,410,271,840 1,199,900,000 (1,764,716,667) (2,284,833,333) 5,560,621,840
(a) Number of shares
Number of shares registered
Number of shares issued Number of existing shares in circulation
(b) Details of owners’ shareholding
477,966,290 477,966,290 477,966,290
Vietnam Oil and Gas Group
Other shareholders
Number of shares
(c) Movement of share capital
As at 1 January 2022
As at 31 December 2022
As at 31 December 2023 477,966,290 477,966,290 477,966,290 4,779,662,900,000 4,779,662,900,000 4,779,662,900,000 4,779,662,900,000 4,779,662,900,000 4,779,662,900,000
The par value of each share is VND10,000. The Corporation does not have any preference shares.
Investment and development fund
As at 1 January 2022
Net profit for the year (As restate - Note 45)
Dividends paid
Appropriation to bonus and welfare fund
Appropriation to investment and development fund
Foreign exchange difference due to translation of financial statements
Others
As at 31 December 2022
Net profit for the year
Dividends paid (*)
Appropriation to bonus and welfare fund (Note 25) (*)
Appropriation to investment and development fund (*)
Foreign exchange difference due to translation of financial statements
4,779,662,900
As at 31 December 2023
4,779,662,900,000
4,779,662,900 39,617,060,000
39,617,060,000
39,617,060,000 3,081,668,462,592 -
132,425,446,638359,985 3,214,094,269,215-237,063,573,6103,451,157,842,825
(*) Dividends paid and appropriation to funds of the parent Company and its subsidiaries was made in accordance to Resolution No. 308/ NQ-PTSC-DHDCD dated 29 May 2023 of the parent Company’s Shareholders Annual General Meeting and resolutions of subsidiaries’ Shareholders Annual General Meeting.
Foreign exchange differences VND Total VND
Post-tax undistributed earnings VND Non-controlling interests VND
284,397,049,341--
109,773,732,318 -
394,170,781,659-121,406,931,322
515,577,712,981
3,694,279,582,577 989,419,519,453 (382,373,032,000) (272,117,865,164) (132,425,446,638)
11,879,625,054,510 989,419,519,453 (382,373,032,000) (272,117,865,164)
109,773,732,318 359,985
3,896,782,758,228 1,026,460,821,400 (334,576,403,000) (303,333,141,380) (237,063,573,610)
12,324,327,769,102 1,026,460,821,400 (334,576,403,000) (303,333,141,380) -
4,048,270,461,638
121,406,931,322 12.834.285.977.444 12,834,285,977,444
728,139,533,603 61,238,866,191 (46,867,485,000) (12,037,434,240)-
730,473,480,554 33,546,704,741 (43,387,750,000) (10,695,497,498)
Total owners’ capital VND
709,936,937,797 12,607,764,588,113 1,050,658,385,644 (429,240,517,000) (284,155,299,404)109,773,732,318 359,985 13,054,801,249,656 1,060,007,526,141 (377,964,153,000) (314,028,638,878) (314.028.638.878)121,406,931,322 13,544,222,915,241
Details of non-controlling interest are as follows:
Share capital
Investment and development funds
Accumulated losses 1,523,361,857,420 143,981,609,132 (957,406,528,755) 709,936,937,797 1,523,361,857,420 140,249,285,726 (933,137,662,592) 730,473,480,554 (As restated - Note 46) (As restated - Note 46)
Movement of non-controlling interest was as follows: 2023 VND 2022 VND
Beginning of year
Net profit attributed to non-controlling interests (Note 28)
Dividends paid (note 28)
Appropriation to bonus and welfare fund (Note 28)
Ending of year
730,473,480,554 33,546,704,741 (43,387,750,000) (10,695,497,498) 709,936,937,797 728,139,533,603 61,238,866,191 (46,867,485,000) (12,037,434,240) 730,473,480,554
(a) Basic earnings per share
Basic earnings per share is calculated by dividing the net profit attributable to shareholders after deducting the bonus and welfare fund by the weighted average number of ordinary shares outstanding during the year, excluding ordinary shares repurchased by the parent Company and held as treasury shares. The details were as follows:
For the year ended 31.12.2023 31.12.2022
Net profit attributable to shareholders (VND)
Less amount allocated to bonus and welfare funds (VND) (*)
Weighted average number of ordinary shares in issue (shares)
Basic earnings per share (VND) 1,026,460,821,400 (271,593,861,012) 754,866,960,388 477,966,290 1,579 989,419,519,453 (302,287,521,098) 687,131,998,355 477,966,290 1,438 (As restated - Note 46)
(*) Estimated amounts appropriated to bonus and welfare funds for the year ended 31 December 2023 are determined based on the plan for 2023 profit distribution of the Corporation approved by shareholders at the Shareholders Annual General Meeting for the year 2023.
(**) Earning per share for the year ended 31 December 2022 was recalculated according to the actual appropriation of bonus and welfare funds of the Corporation in 2022 approved by the shareholders according to the Annual General Meeting of Shareholders in 2023 as below:
For the year ended 31.12.2022
Adjustments As previously reported As restated
Net profit attributable to shareholders (VND)
Less amount allocated to bonus and welfare funds (VND)
Weighted average number of ordinary shares in issue (shares)
Basic earnings per share (VND) 105,783,266,474 (171,369,790,685) 989,419,519,453 (302,287,521,098) 687,131,998,355 477,966,290 1,438 883,636,252,979 (130,917,730,413) 752,718,522,566 477,966,290 1,575
(b) Diluted earnings per share
Diluted earnings per share is calculated by dividing the net profit attributable to shareholders, which already subtracted the bonus and welfare fund, by the weighted average number of ordinary shares outstanding during the year and the ordinary shares expected to be issued. The parent Company did not have any ordinary shares potentially diluted during the year and up to the date of this consolidated financial statements. So diluted earnings per share is equal to basic earnings per share.
(a) Goods held for third parties (b) Ngoại tệ các loại
As at 31 December 2023 and 31 December 2022, The Corporation is holding goods for project implementation, included:
As at 31 December 2023 and 31 December 2022, included in cash and cash equivalents are balances held in following foreign currencies:
United States Dollar (“USD”)
Euro (“EUR”)
Pound sterling (“GBP”)
Russian rouble (“RUB”) 120,228,052 5,135,051 244,695 1,530,827 122,567,651 1,932 244,701 1,531,537
(c) Operating lease assets
The future minimum lease receipts/payable under non-cancellable operating leases were presented in Note 43(a).
(d) Capital commitments
Contracted capital expenditure commitments were presented in Note 43(b).
Revenue
Revenue from sales of finished goods
Revenue from rendering of services
Revenue from construction contracts (*)
Sales deductions
Trade discounts
Net revenue from sales of goods and rendering of services
Net revenue from sales of finished goods
Net revenue from rendering of services
Net revenue from construction contracts (*)
(*) In which:
Accumulated revenue from completed construction contracts during the year
Accumulated revenue from in progress construction contracts during the year
283,473,678,849 8,028,890,546,314 11,066,286,366,556 19,378,650,591,719 (5,088,227,958)
283,473,678,849 8,023,802,318,356 11,066,286,366,556 19,373,562,363,761 8.942.551.149.655 46.549.787.265.784 160,049,816,793 7,548,322,612,319 8,664,502,661,856 16,372,875,090,968 (6,461,436,399) 160,049,816,793 7,541,861,175,920 8,664,502,661,856 16,366,413,654,569 393,639,271,442 43,519,372,881,315 (As restated - Note 46)
Cost of merchandises sold
Cost of services rendered
Cost of construction contracts 255,270,891,310 7,210,866,213,651 10,868,396,929,560 18,334,534,034,521 143,116,340,408 6,803,672,517,456 8,405,747,380,444 15,352,536,238,308 (As restated - Note 46)
34. FINANCIAL INCOME
Interest income Foreign exchange gains Other 463,869,340,167 325,848,564,835 214,200 789,718,119,202 257,607,958,530 231,453,781,738489,061,740,268
Foreign exchange losses
Interest expense
Reversal of provisions (Note 4(b))
Others 155,402,363,251 73,036,083,814 (12,950,479,996) 865,953,561 216,353,920,630 109,851,961,014 50,646,884,587 (61,197,137) 2,195,907,126 162,633,555,590
36. SELLING EXPENSE
Advertising and marketing
Staff costs
Others 55,803,196,305 5,937,819,412 23,664,242,081 85,405,257,798 46,654,856,275 5,554,410,659 27,116,955,956 79,326,222,890 35. FINANCIAL EXPENSES
Staff costs
Outside services
Depreciation and amortisation
Reversal of provision
Others 481,294,176,385 294,609,556,732 30,480,478,807 (13,822,592,172) 174,296,468,563 966,858,088,315 388,148,549,278 205,853,161,214 26,513,917,071 (22,197,700,485) 229,428,665,760 827,746,592,838 (As restated - Note 46)
2023
Other income
Reimbursement receivable for Lam Son FPSO bareboat chartered contract (*)
Reversals of warranty provision for construction contracts (**)
Income from contracts’ breach
Net gain from disposals of fixed asset
Others
Other expenses
Reimbursement payable for Lam Son FPSO leased contract (*)
Non deductible VAT expense
Penalties
Others Lợi nhuận khác
2022
1,439,185,914,126 116,065,961,428 15,648,643,019 4,799,930,050 3,055,621,439 1,578,756,070,062 (1,459,472,946,083) (26,032,370,015) (18,195,452,722) (9,006,923,307) (1,512,707,692,127) 66,048,377,935142,063,986,677 5,265,247,890 62,976,905,532 11,651,900,224 221,958,040,323(27,270,048,191) (9,201,085,739) (36,471,133,930) 185,486,906,393 (As restated - Note 46)
(*) According to the Payment Agreement dated 29 September 2023 between the Corporation and PTSC AP, PVEP and the Corporation on determining the benefits from leased contract and bareboat chartered contract of the Lam Son FPSO according to the Settlement Agreement dated 14 December 2017 between the Corporation and Lam Son JOC, the amount PTSC AP must pay to the Corporation is USD59,667,741.05 and the amount the Corporation must pay to PVEP is USD59,667,741.05 and VND42,669,961,727.
(**) The reversals of warranty provision for construction contracts represents reversal of the balance of warranty provision after the Corporation has fulfilled all warranty obligations under the scope of work and warranty period in accordance with terms on those construction contracts and confirmed by the investors.
The CIT on the Corporation’s accounting profit before tax differs from the theoretical amount that would arise by using the applicable tax rate of 20% under the current regulations as follows:
Accounting profit before tax
Accounting profit before CIT
Accounting losses before CIT
Increase adjustments (*)
Decrease adjustments (**)
Loss transferred
Total taxable income
In which:
Taxable income
Taxable losses
CIT at tax rate of 20%
CIT incentive
Over provision
CIT paid oversea
CIT current charge (***)
VND 2022 VND 1,277,307,632,960 1,277,307,632,9601,277,307,632,960 734,825,597,964 (581,438,821,067) (256,489,360,916) 1,174,205,048,941 1,202,037,264,630 (27,832,215,689) 240,407,452,926 (7,634,736,121) 257,568,930 (14,024,373,062) 219,005,912,673 1,275,923,773,262 1,275,923,773,2621,275,923,773,262 803,911,785,067 (1,359,438,284,045) (11,969,209,673) 708,428,064,611 885,298,249,617 (176,870,185,006) 177.059.649.923 (5,612,680,065) 350,802,536 (10,273,759,292) 161,524,013,102 (As restated - Note 46)
Increase adjustments mainly comprised dividends, profit distributed to the parent Company from joint ventures, deductible temporary differences from accrued expenses and provisions for liabilities.
Decrease adjustments mainly comprised dividends, profit distributed to the parent Company from subsidiaries.
The CIT current charge for the year is based on estimated taxable profit and is subject to review and possible adjustments by the tax authorities. (*) (**) (***)
Costs of operation by factor represent all costs incurred during the year from the business operating of the Corporation, excluding cost of merchandise for trading activities. Details are as follows: 2023 VND 2022 VND
Raw materials
Staff costs
Depreciation and amortisation expenses
Related cost of construction contracts
Outside service expenses
Others
3,527,686,364,011 3,030,809,817,838 493,006,130,650 6,964,242,198,634 4,283,454,411,933 1,087,598,457,568 19,386,797,380,634 4,839,008,172,451 2,665,829,516,626 471,290,373,424 3,649,983,783,228 3,647,110,218,106 986,386,990,201 16,259,609,054,036 (As restated - Note 46)
The largest shareholder of the Corporation is PVN which owns 51.38% of the Corporation’s share capital (Note 27).
Accordingly, PVN, fellow PVN group subsidiaries, subsidiaries, associates and joint ventures of the Corporation are considered the Corporation’s related parties. Apart from subsidiaries, associates and joint ventures disclosed in Note 1 and 4, during the year, the Corporation has balances and transactions with below parties:
Name
Vietnam Oil and Gas Group
PetroVietnam Exploration Production Corporation
PetroVietnam Drilling and Well Services Corporation
PetroVietnam Transportation Corporation
PetroVietnam Construction Joint Stock Company
PetroVietnam Fertilizer and Chemicals Corporation
Vietnam - Russia Joint Venture Vietsovpetro
PetroVietnam Oil Corporation
PetroVietnam Power Corporation
Binh Son Oil Refinery Company Limited
PetroVietnam Drilling Fluid and Chemical Corporation
PVI Insurance Corporation
Petroleum Design Consulting Corporation
PetroVietnam Maintenance - Repair Corporation
Nghi Son Refining and Petrochemical Company Limited
Nghi Son Refinery and Petrochemical Complex Project Management Board
Bien Dong Petroleum Operating Company
Long Phu 1 Power Plant Project Management Board
PetroVietnam Domestic Exploration Production Operating Company Limited
PTSC Ca Rong Do limited
PetroVietnam Ca Mau Fertilizer Joint Stock Company
Foreign Petroleum Exploration and Exploitation Operations One Member LLC
PetroVietnam Gas Corporation
Owner of parent Company
Company in PVN Group
Company in PVN Group Company in PVN Group
Company in PVN Group Company in PVN Group Company in PVN Group
Company in PVN Group Company in PVN Group Company in PVN Group Company in PVN Group Company in PVN Group Company in PVN Group Company in PVN Group Company in PVN Group Company in PVN Group Company in PVN Group Company in PVN Group Company in PVN Group Company in PVN Group Company in PVN Group Company in PVN Group Company in PVN Group
(a) Related party transactions
The primary transactions with related parties incurred in the year are:
i) Sales of goods and services
PetroVietnam Gas Joint Stock Corporation
PetroVietnam Exploration Production Corporation Limited
Nghi Son Refining and Petrochemical Company Limited
Bien Dong Petroleum Operating Company
Binh Son Refining and Petrochemical JSC
Malaysia Vietnam Offshore Terminal (Labuan) Limited
Vietnam Offshore Floating Terminal (Ruby) Limited
PetroVietnam Drilling and Well Services Corporation
PTSC Ca Rong Do Limited
PetroVietnam Fertilizer and Chemicals Corporation
Others 1,167,392,650,758 1,011,299,918,939 608,781,796,657 575,582,779,765 404,089,346,148 313,738,422,478 293,714,010,055 66,275,333,537 50,599,999,978 31,359,123,126 250,847,809,226 4,773,681,190,667 1,339,092,249,075 859,814,788,815 396,424,346,251 452,065,990,360 405,541,429,471 300,252,282,587 270,362,530,408 80,427,973,93651,631,641,033 161,650,866,180 4,317,264,098,116 (As restated - Note 46)
RELATED PARTY DISCLOSURES (Continued)
(a) Related party transactions (Continued)
ii) Purchases of goods and services
PTSC Asia Pacific Private Limited
PetroVietnam Marine Shipyard Joint Stock Company
PTSC South East Asia Private Limited
PetroVietnam Steel Pipe Joint Stock Company
Petro Vietnam Construction Joint Stock Corporation
PetroVietnam Oil Corporation
PVI Insurance Corporation
PetroVietnam Drilling and Well Services Corporation
PetroVietnam Gas Joint Stock Corporation
Others 539,159,349,211 416,004,742,502 282,481,914,350 237,983,445,082 172,515,401,967 163,914,905,177 119,745,384,704 71,769,485,529 5,558,770,103 79,684,520,834 2,088,817,919,459 458,154,365,699 144,899,290,513 173,111,066,645 8,086,243,652 117,849,757,280 140,360,790,900 97,512,932,917 184,378,153,567 118,412,302,817 111,184,636,472 1,553,949,540,462
iii) Compensation of key management
Gross salaries and other benefits
In which:
Mr. Phan Thanh Tung - Chairman of BOD
Mr. Le Manh Cuong - Member of BOD cum Chief Executive Officer
Mr. Do Quoc Hoan - Member of BOD
Mr. Nguyen Xuan Ngoc - Member of BOD
Mr. Tran Ngoc Chuong - Member of BOD
Others
iv) Dividend paid
Vietnam Oil and Gas Group
v) Insurance compensation received related to Sao Vang Dai Nguyet pipeline project
PVI Insurance CorporationI 46,375,774,800 4,151,577,000 4,120,638,000 3,332,537,000 3,169,933,000 2,933,107,000 28,667,982,800 171,905,355,86136,802,489,400 3,159,513,000 3,072,405,000 2,627,957,000 2,435,920,000 2,216,434,000 23,290,260,400 196,463,263,841 103,365,000,000
(b) Year end balances with related parties
i) Short-term trade accounts receivable (Note 5)
PetroVietnam Gas Joint Stock Corporation
PetroVietnam Exploration Production Corporation Limited
PetroVietnam Long Phu 1 Thermal Power Project Management Board
Malaysia Vietnam Offshore Terminal (Labuan) Limited
Nghi Son Refining and Petrochemical Company Limited
Bien Dong Petroleum Operating Company
Vietnam Offshore Floating Terminal (Ruby) Limited
PetroVietnam Domestic Exploration Production Operating Company Limited
Nghi Son Refinery and Petrochemical Complex Project Management Board
Phu Quoc Petroleum Operating Company
PetroVietnam Chemical and Services Corporation
PetroVietnam Drilling and Well Services Corporation
Binh Son Refining and Petrochemical JSC
PetroVietnam Fertilizer and Chemicals Corporation
Others
ii) Prepayments to suppliers (Note 6)
Petroleum Metal Structure and Machinery Installation Joint Stock Company
Others 246,109,537,585 208,119,814,551 161,483,574,380 139,273,415,504 133,281,858,350 87,912,322,840 80,783,250,733 59,680,270,655 37,203,110,659 35,341,920,000 28,216,724,162 20,077,945,885 5,676,200,150 1,858,550,326 50,216,734,541 1,295,235,230,321 25,782,432,185 7,975,675,438 33,758,107,623 289,178,126,432 1,674,097,577,097 157,176,228,387 55,521,290,635 78,601,214,063 61,921,861,414 87,004,855,241 42,333,538,764 37,203,110,659801,931,667 27,422,792,587 42,018,944,002 58,047,251,404 48,176,284,338 2,659,505,006,690 1,812,100,373 1,467,979,390 3,280,079,763
iii) Other short-term receivables (Note 8(a))
Nghi Son Refining and Petrochemical Company Limited
Malaysia Vietnam Offshore Terminal (Labuan) Limited
Vietnam Oil and Gas Group
PetroVietnam Overseas Exploration Production Operating Company Limited
Others
iv) Short-term trade accounts payable (Note 17)
PTSC Asia Pacific Private Limited
PTSC South East Asia Private Limited
PetroVietnam Steel Pipe Joint Stock Company
PetroVietnam Marine Shipyard Joint Stock Company
PetroVietnam Drilling and Well Services Corporation
PetroVietnam Construction Joint Stock Corporation
PetroVietnam Oil Corporation
Nghi Son Refining and Petrochemical Company Limited
Others 43,407,857,358 14,615,893,392 10,632,042,89823,190,979,017 91,846,772,665 111,433,344,000 91,719,078,000 76,848,549,871 69,995,801,322 46,395,971,378 20,131,034,593 19,419,837,506 14,834,843,567 30,814,825,549 481,593,285,786 24,394,736,436 10,201,866,972 10,632,042,898 10,061,561,353 13,953,311,721 69,243,519,380 1,524,200,231,117 14,789,841,150 1,758,895,038 25,172,836,075 120,981,575,780 31,472,096,144 18,563,245,744 10,192,872,876 21,509,027,034 1,768,640,620,958
(b) Year end balances with related parties (Continued)
v) Short-term advances from customers (Note 18(a))
Binh Son Refining and Petrochemical JSC
PetroVietnam Oil Corporation
PetroVietnam Gas Joint Stock Corporation
Others
vi) Long-term advances from customers (Note 18(b))
PetroVietnam Long Phu 1 Thermal Power Project Management Board
PetroVietnam Gas Joint Stock Corporation
vii) Other short-term payables (Note 22(a))
Nghi Son Refining and Petrochemical Company Limited
Malaysia Vietnam Offshore Terminal (Labuan) Limited
PetroVietnam Construction Joint Stock Corporation
Others
viii) Other long-term payables (Note 22(b))
PetroVietnam Gas Joint Stock Corporation 77,261,034,927 12,460,724,9344,375,940,936 94,097,700,797 781,044,054,435 58,110,652,331 839,154,706,766 10,205,925,078 2,692,225,602 1,669,212,234 1,052,269,583 15,619,632,497 69,473,052,00 45,816,725,642 10,900,068,788 51,514,955,821 2,557,192,175 110,788,942,426 781,044,054,435781,044,054,435 24,515,340,677 5,977,154,193 1,669,212,234 1,092,203,471 33,253,910,575 69,473,052,000
Geographical segment
The Corporation operates mainly in Vietnam. Therefore, the Corporation does not present geographic segment reports.
Business activity segment
For management purpose, the Corporation’s structure is separated into seven business segments with the following principal activities:
Business segment Operation
Petroleum technical vessels services
Floating storage and offloading (FSO), Floating production storage and offloading (FPSO) services
Seismic survey, geophysical and geological survey and subsea
Management, business and operation of the technology service vessels
Supply of Floating storage and offloading (FSO), Floating production storage and offloading (FPSO)
Supply of management and operation of 2D, 3D seismic survey vessels; Geophysical and geological survey services, diving, and subsea services by using ROV
Supply base services
Mechanical and construction offshore facilities
Repair, maintenance and instalment oil and gas project
Other services
Supply base services, offices rental, logistic, supply chain management and other related services
Providing services of fabrication, assembling, engineering components, petroleum equipment and renewable energy projects
Supply of maintenance, repair, building and conversion of petroleum exploiting facilities
Supply other services
Business activity segment (continued)
The Corporation prepared business activity segment reporting by assets and liabilities as follows:
Year ended 31 December 2023
petroleum
Segment assets
Profit from investments in associates and joint ventures
Unallocated assets
Total assets
Segment liabilities
Deferred tax liabilities arise from profit sharing from associates and joint ventures
Unallocated liabilities
Total liabilities 3,582,354,195,790 1,652,638,302,016 4,534,992,642,935 1,179,500,155,414 1,007,024,088,425 1,771,107,240,670
3,613,281,231,755 1,361,428,918,459 1,281,956,560,593 518,521,471,693 9,471,967,466,819 6,530,449,145,926 (4,728,816,323,195) (2,322,104,385,764) 2,248,688,919,352 973,656,777,859 21,011,448,782,474 3,303,438,456,820 2,101,121,571,093 26,416,008,810,387 11,665,197,626,273 490,547,865,083 716,040,403,790 12,871,785,895,146
Business activity segment (continued)
The Corporation prepared business activity segment reporting by assets and liabilities as follows:
Year ended 31 December 2022
Segment assets
Profit from investments in associates and joint ventures
Unallocated assets
Total assets
Segment liabilities
Deferred tax liabilities arise from profit sharing from associates and joint ventures
Unallocated liabilities
Supply of petroleum technology service vessels VND FSO / FPSO services VND Seismic survey, Geo survey & subsea services VND
Total liabilities 2,601,343,806,495 1,765,820,915,515 5,149,693,712,210 2,471,666,639,338 1,063,541,041,183 1,730,234,208,925
3,151,000,002,047 1,077,434,807,294 1,379,934,260,571 464,623,555,970 8,662,701,320,429 5,686,963,543,257 (4,417,451,767,506) (2,116,440,187,777) 1,952,513,213,105 758,265,474,304
19,543,275,588,534 3,276,056,600,426 3,104,698,101,715 25,924,030,290,675 11,838,568,956,826 525,118,026,591 505,542,057,602 12,869,229,041,019
Business activity segment (continued)
The Corporation prepared business activity segment reporting by assets and liabilities as follows: Supply of petroleum technology service vessels VND FSO / FPSO services VND Seismic survey, Geo survey & subsea services VND
Net revenue from external sales
Net revenue from internal sales
Year ended 31 December 2023
Net cost from external sales
Net cost from internal sales
Gross segment profit 1,607,098,023,446 385,121,064,069 1,992,219,087,515 (1,393,847,467,382) (385,121,064,069) (1,778,968,531,451)
213,250,556,064 2,207,232,210,925 411,057,362,656 2,618,289,573,581 (2,035,501,940,875) (411,057,362,656) (2,446,559,303,531) 171,730,270,050 405,223,890,154 52,592,137,208 457,816,027,362 (359,720,674,345) (45,927,747,013) (405,648,421,358) 45,503,215,809
Selling and administration expenses
Net income from financing activities
Profit sharing from associates and joint ventures
Profit from operating service
Net income from other activities
Net accounting profit before tax
CIT - current
CIT - deferred
Net profit after tax
Supply base services
1,412,057,051,633
271,343,148,469 1,683,400,200,102 (1,147,791,058,056) (277,884,513,996) (1,425,675,572,052)
264,265,993,577
11,172,484,215,516
379,617,704,833 11,552,101,920,349 (10,997,408,349,019) (402,684,050,343) (11,400,092,399,362)
1,912,867,636,855 84,555,849,452 1,997,423,486,307 (1,842,481,316,758) (84,555,849,452) (1,927,037,166,210)
656,599,335,232 224,277,542,366 880,876,877,598 (557,783,228,086) (150,584,454,933) (708,367,683,019)
175,075,866,497(1,808,564,809,053) (1,808,564,809,053)1,757,815,042,462 1,757,815,042,462 -
98,816,107,146
70,386,320,097 19,373,562,363,76119,373,562,363,761 (18,334,534,034,521)(18,334,534,034,521) 1,039,028,329,240 (1,052,263,346,113) 560,085,428,627 664,408,843,271 1,211,259,255,025 66,048,377,935 1,277,307,632,960 (219,005,912,673) 1,705,805,854 1,060,007,526,141
Business activity segment (continued)
The Corporation prepared business activity segment reporting by assets and liabilities as follows: Year ended 31 December 2022
Supply of petroleum technology service vessels VND FSO / FPSO services VND Seismic survey, Geo survey & subsea services VND
Net revenue from external sales
Net revenue from internal sales
Net cost from external sales
Net cost from internal sales
Gross segment profit 1,569,961,573,888 375,955,966,824 1,945,917,540,712 (1,423,590,955,766) (374,167,259,664 (1,797,758,215,430) 146,370,618,122 510,485,548,290510,485,548,290 (465,542,165,267)(465,542,165,267) 44,943,383,023 1,874,174,246,051 391,377,104,331 2,265,551,350,382 (1,734,967,870,118) (390,010,449,331) (2,124,978,319,449) 139,206,375,933
Selling and administration expenses
Net income from financing activities
Profit sharing from associates and joint ventures
Profit from operating service
Net income from other activities
Net accounting profit before tax
CIT - current
CIT - deferred
Net profit after tax
base services
1,455,197,718,558
161,154,507,850
1,616,352,226,408
(1,127,955,997,986) (167,482,488,045) (1,295,438,486,031)
327,241,720,572
8,714,869,189,491 463,125,194,861
9,177,994,384,352
(8,458,888,893,483) (515,460,426,637) (8,974,349,320,120)
1,530,897,858,317 343,492,877,916 1,874,390,736,233
710,827,519,974 124,392,471,069 835,219,991,043
255,980,296,008(1,859,498,122,851) (1.859.498.122.851)1.870.578.438.530 1.870.578.438.530 -
(1,493,469,185,027) (343,492,877,916) (1,836,962,062,943)
(648,121,170,661) (79,964,936,937) (728,086,107,598)
7,428,673,290
62,706,349,313
16,366,413,654,56916,366,413,654,569 (15,352,536,238,308)(15,352,536,238,308) 1,013,877,416,261
(907,072,815,728)
326,428,184,678 657,204,081,658 1,090,436,866,869
185,486,906,393 1,275,923,773,262 (161,524,013,102) (63,741,374,516) 1,050,658,385,644
Year ended 31 December
Purchase of fixed assets and other long-term assets that have not been settled
Write off bad debt 150,492,281,586 11,756,073,468 34,865,426,125 -
(a) Commitments under operating leases
(i) The Corporation as a lessee
The future minimum lease payments under non-cancellable operating leases were as follows:
Within one year
Between one and five years
Over five years
Total minimum payments 1,093,233,229,955 1,879,793,889,169 1,654,218,976,762 4,627,246,095,886 447,849,951,123 174,682,663,939 991,830,548,983 1,614,363,164,045
As at 31 December 2023 and 31 December 2022, the Corporation has entered into non - cancellable operating lease commitment contracts of vessels rental, FSO/FPSO rental, yard rental and land rental, in which:
• FSO/FPSO, vessels rental contracts were signed with duration of 5 years;
• Land lease in Vung Tau City was signed with the term of 50 years since 2002;
• Land rental contract at Dung Quat port was signed with the term of 50 years since 2004;
• Land lease in Vung Tau City was signed with the term of 50 years since 2007;
• Land rental contract at Son Tra port was signed with the term of 50 years since 2008;
• Land rental contract at Hon La port was signed with the term of 50 years since 2014;
• Land lease in Vung Tau City was signed with the term of 50 years since 2015;
• Yard rental contract at Sao Mai Ben Dinh port was signed with the term of 50 years since 2016;
• Yard rental contract at Vung Tau port was signed with the term of 5 years,10 years and 15 years since 2019; and
• Office rental contract in Ho Chi Minh was signed with the term of 1 year since 2023..
(ii) The Corporation as a lessor
The future minimum lease receipts under non-cancellable operating leases are as follows: 2023 VND
Within one year
Between one and five years
Over five years
Total minimum receipts
VND 678,860,388,289 3,098,086,577,716 951,179,164,883 4,728,126,130,888 1,335,503,855,724 2,743,163,308,151 1,204,373,573,382 5,283,040,737,257
As at 31 December 2023 and 31 December 2022, the Corporation has entered into non-cancellable operating lease commitment contracts of leasing service vessels with the term of 15 years; FSO/FPSO with the term of 5 years and yard lease at Sao Mai Ben Dinh port with the term of 48 and 49 years.
(b) Cam kết vốn
Commitments on expenditures on creation of contracted fixed asset at the end of the fiscal year but not yet accounted for in the consolidated financial statements are as follows:
Procurement contracts that have not yet been implemented
Equipment, systems for blasting and painting workshops of renewable energy project
Temporary workshop for renewable energy project
Building for operation and expansion of Nghi Son port project
Workshop 2 at POS
Dung Quat Berth No.3 Project, Quang Ngai province
Expansion project at Vung Tau port
Warehouse construction at Hon La port, Quang Binh province 335,164,673,843 20,191,844,270 13,805,255,049 11,881,268,257 1,864,668,207 1,362,083,12084,269,792,746 24,896,664,75829,896,337,125859,512,144 41,257,369,065 10,262,734,717 107,172,617,809
As at 31 December 2023, Sao Mai Ben Dinh Petroleum Investment Joint Stock Company, a subsidiary, is in the process of continuing to apply for an adjustment to the investment license so that the Sao Mai Ben Dinh port project is recognised as a seaport projects in the list of special investment incentives as prescribed in Decree 118/2015/ND-CP (“Decree 118”) issued on 12 November 2015 and replaced by Decree No. 31/2021/ND-CP (“Decree 31”) dated 26 March 2021. According to the provisions of Decree 46/2014/ND-CP (“Decree 46”) issued on 15 May 2014, the special preferential investment projects are exempted from land rental fee for the next 11 years after being exempted from land rental fee for up to 3 years during the capital construction period (from 12 February 2015 to 11 February 2018).
On 6 November 2023, Tax Department of Vung Tau - Con Dao area announced a notice No 14318/7/TB-CCTKV about annual land tax of Sao Mai Ben Dinh Petroleum Investment Joint Stock Company for the land area of 819,325.4m2 at 30/4 Street, Thang Nhat ward, Vung Tau City invested to be a Sao Mai - Ben Dinh Petroleum marine service base. Following that, land rental fee for the period from 12 February 2018 to 31 October 2023 is VND548,056,658,738. Sao Mai Ben Dinh Petroleum Investment Joint Stock Company evaluated Sao Mai Ben Dinh Port project which is being implemented will be recognised as a special preferential investment project in accordance with the Decree 118 (replaced by Decree 31 dated 26 March 2021) and be exempt from land rent fee under Decree 46. As at the date of the consolidated financial statements ended on 31 December 2023, Sao Mai Ben Dinh Petroleum Investment Joint Stock Company did not record the land rental fee respectively.
According to the Audit Minute of the State Auditor (“SA”) on 20 October 2023 about the audit results of the Corporation for the year ended 31 December 2022, the Board of Management has decided to restate a few items on the consolidated financial statements for the year ended 31 December 2022 in accordance with the Decision of SA. The material restatements include:
(i) (ii)
Decrease adjustments in revenue, cost of services rendered and increase adjustment in work in progress related to estimate percentage of completion of Gallaf project – Phase 3 and Hai Long OSS project; and
Increase adjustments in revenue related to estimate percentage of completion of LNG Thi Vai warehouse EPC project.
According to the impact of those restatements on the consolidated financial statements for the year ended 31 December 2022 are presented as below:
(a) The consolidated balance sheet
Short-term receivables
Short-term trade accounts receivable
Construction contracts-in-progress receivables
Other short-term receivables
Provision for doubtful debts – short term
Inventories Inventories
3.542.335.283 (17.096.808.192) 11,485,301,109 8,898,477,812 255,364,554 77,440,848,481 77,440,848,481 583,623,000 583,623,000 14,691,843,993 8,153,987,649 8,153,987,649 8,271,897,263 (117,909,614) 6,537,856,344 6,537,856,344 96,258,650,757 16,388,291,606,616 5,043,467,850,735 4,158,365,600,740 69,968,946,447 656,830,079,339 (147,664,923,941) 1,012,219,488,343 1,014,169,742,731 275,895,192,255 37,994,410,644
9.439.480.033.302 3,040,183,166,385 2,973,164,199,046 12,400,929,737,366 (9,427,765,538,320) 1,016,693,553,978 338,197,955,965 25,827,771,639,918 16,469,858,413,380 5,047,010,186,018 4,141,268,792,548 81,454,247,556 665,728,557,151 (147,409,559,387) 1,089,660,336,824 1,091,610,591,212 276,478,815,255 38,578,033,644 9,454,171,877,295 3,048,337,154,034 2,981,318,186,695 12,409,201,634,629 (9,427,883,447,934) 1,023,231,410,322 344,735,812,309 25,924,030,290,675
LIABILITIES
Short-term liabilities
Tax and other payables to the State
Short-term accrued expenses
Provision for short-term liabilities
Short-term liabilities
Provision for long-term liabilities
OWNERS’ EQUITY
Capital and reserves
Undistributed earnings
Post-tax profit of current year
Non-controlling interests
RESOURCES
12,879,176,838,661 9,198,890,888,791 98,873,145,235 902,067,010,917 81,376,634,813 3,680,285,949,870 1,245,471,401,158 12,948,594,801,257 12,948,594,801,257 3,790,999,491,754 862,320,522,572 730,050,298,629 25,827,771,639,918 12,869,229,041,019 9,191,675,985,667 110,940,195,369 894,744,572,439 69,417,120,032 3,677,553,055,352 1,242,738,506,640 13,054,801,249,656 13,054,801,249,656 3,896,782,758,228 968,103,789,046 730,473,480,554 25,924,030,290,675
(9,947,797,642) (7,214,903,124) 12,067,050,134 (7,322,438,478) (11,959,514,781) (2,732,894,518) (2,732,894,518) 106,206,448,399 106,206,448,399 105,783,266,474 105,783,266,474 423,181,925 96,258,650,757
(b) The consolidated income statement
RESTATEMENTS (Continued) Adjustments VND As previously reported VND Code Restated VND
Revenue from sales of goods and rendering of services
Net revenue from sales of goods and rendering of services
Cost of sales
Gross profit from sales of goods and rendering of services
General and administration expenses
Net operating profit
Other income
Net other income
Net accounting profit before tax CIT - current CIT - deferred Net profit after tax Attributable
(6,098,866,262) (6,098,866,262) 105,348,763,235 99,249,896,973 189,191,221 99,439,088,194 2,844,543,670 2,844,543,670 102,283,631,864 (2,615,039,809) 6,537,856,344 106,206,448,399 105,783,266,474 423,181,925 (137) (137) 16,378,973,957,230 16,372,512,520,831 (15,457,885,001,543) 914,627,519,288 (827,935,784,059) 990,997,778,675 219,113,496,653 182,642,362,723 1,173,640,141,398 (158,908,973,293) (70,279,230,860)
944,451,937,245 883,636,252,979 60,815,684,266 1,575 1,575 16,372,875,090,968 16,366,413,654,569 (15,352,536,238,308) 1,013,877,416,261 (827,746,592,838) 1,090,436,866,869 221,958,040,323 185,486,906,393 1,275,923,773,262 (161,524,013,102) (63,741,374,516) 1,050,658,385,644 989,419,519,453 61,238,866,191 1,438 1,438
(c) The consolidated cash flow
Year ended 31 December 2022
Code Restated VND
CASH FLOWS FROM OPERATING ACTIVITIES
Net accounting profit before tax
Adjustments for:
Depreciation and amortisation
Provisions
Operating profit before changes in working capital
Increase in receivables
Decrease in inventories
Increase in payables
Increase in prepaid expenses
Adjustments VND As previously reported VND
102,283,631,864 117,909,614 (14,947,773,853) 87,453,767,625 (3,286,970,729) (77,440,848,481) (6,142,325,415) (583,623,000) 1,173,640,141,398 471,172,463,810 171,301,288,691 917,843,711,736 (350,311,498,468) 1,082,924,544,326 448,669,409,834 (36,347,922,309) 1,275,923,773,262 471,290,373,424 156,353,514,838 1,005,297,479,361 (353,598,469,197) 1,005,483,695,845 442,527,084,419 (36,931,545,309)
The consolidated financial statements were approved by the Board of Management on 12 March 2024.
Duong Thi Ngoc Quy Preparer
Nguyen Van Bao Chief Accountant
Le Manh Cuong President and CEO
CONFIRMATION OF THE LEGAL REPRESENTATIVE OF PTSC’S CORPORATION
PRESIDENT AND CEO
