Vietnam Petro Gas Joint Stock Company - Initial Coverage Essays

8372 Words Apr 7th, 2015 34 Pages
Student Research
This report is published for educational purposes only by students competing in the CFA Institute Global Investment Research Challenge.

Oil and Gas industry

PetroVietnam Gas
Recommendation: HOLD Price Target: 79,512 VND
2015F 83,482,699 24,051,366 15,143,449 7,991 30.12% 2016F 97,674,758 28,140,098 17,753,969 9,369 28.48% 2017F 2018F

Date: 22 December, 2014

Ticker: GAS Price (Dec 19, 2014): 68,000 VND

Forecast Summary Net Sales (million VND) EBITDA (million VND) Net Income (million VND) EPS (VND) ROE (%)

2011 64,224,500 11,858,894 64,224,500 2,285 28%

2012 68,301,359 15,940,112 68,301,359 5,167 40%

2013 65,399,686 18,434,982 65,399,686 6,478 42%

2014F 72,593,651 20,914,231 13,140,492 6,934
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Those projects will be completed in 2015 and will be guaranteed the sales of dry gas in the future. Besides, GAS also upgrades the LPG storages to strengthen the storage capacity.  Strong financial position with large amount of cash on hands. PV Gas can be more independently in financing for its projects and enable the company to take advantages future opportunities.  In the future, LPG business’s growth is guaranteed by the new largest storage in Vietnam. In March 2013, the Thi Vai refrigerated LPG storage was put into use with capacity over 60,000 tons per year and upgrading LPG storage Dinh Vu – Hai Phong to provide more LPG for manufacturing industry, household, transportation and commercial.  Gas products diversification by importing LNG business. LNG can reduce environment pollution, save up to 40% of cost and can be used to replace gasoline or oil in transportation, industry and household. Foreseen LNG‟s advantages and the shortage in the future would be worse,

Important disclosures appear at the back of this report

[BUSINESS ANALYSIS AND EVALUATION REPORT – PV GAS] December 22, 2014
GAS has prepared by investing in 1 million tons per year LNG storage at Thi Vai and 3 – 6 million tons per year LNG storage and terminal at Son My, which are expected to be put into

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