Financial analysis report of binh son refining and petrochemical joint stock company, petrovietnam technical services corporation vietnam national petroleum group, petrovietnam chemical and services corporation

Dissertation submitted in partial fulfillment of the Requirement for the MSc in Finance FINANCE DISSERTATION ON FINANCIAL ANALYSIS REPORT OF BINH SON REFINING AND PETROCHEMICAL JOINT STOCK COMPANY, PETROVIETNAM TECHNICAL SERVICES CORPORATION, VIETNAM NATIONAL PETROLEUM GROUP, PETROVIETNAM CHEMICAL AND SERVICES CORPORATION NINH HUONG GIANG ID No: 21071800 Intake Supervisor: Dr Tran Ngoc Mai September 2022 Tai ngay!!! Ban co the xoa dong chu nay!!! 17014126331461000000 TABLE OF CONTENT CHAPTER 1: INTRODUCTION .1 1.1 Overview of the global and Vietnamese oil and gasoline market 1.2 Area of the study .3 1.3 Study objectives 1.4 Methods of the study 1.5 Organization of the study CHAPTER 2: MACROECONOMICS ANALYSIS 2.1 The global economy in 2022 2.2 The global oil and gasoline market 2.3 The Vietnamese economy .8 CHAPTER 3: INDUSTRY ANALYSIS 15 3.1 Oil and Gasoline industry in Vietnam 16 3.2 List of large gas and oil blocks in Vietnam 17 3.3 List of companies operating in this industry 18 3.4 Five forces analysis .18 CHAPTER 4: COMPANY ANALYSIS 21 4.1 Binh son refining and petrochemical joint stock company .22 Company profile 22 Financial analysis .28 Valuation 33 Recommendation 35 4.2 Petrovietnam Technical Services Corporation (PTSC) 36 Company profile 37 Financial Analysis 46 Revenue 46 Valuation 53 Recommendation 55 4.3 Vietnam National Petroleum Group (Petrolimex) 56 Company profile 57 Financial Analysis 62 Valuation 71 Recommendation 72 4.4 Petrovietnam Chemical and Services Corporation (PVChem) .73 Company profile 74 Financial Analysis 78 Valuation 86 Recommendation 87 CHAPTER 5: CONCLUSION 88 REFERENCE 91 APPENDIX 94 LIST OF FIGURES Figure 1: GDP Growth, GSO 10 Figure 2: CPI Growth, GSO 11 Figure 3: IPI, GSO 11 Figure 4: Interest rate, tradingeconomics.com, SBV 13 Figure 5: BSR’s structure 24 Figure 6: BSR’s key milestone 25 Figure 7: BSR’s business model .26 Figure 9: BSR’s revenue Growth 29 Figure 10: PVS’s key milestones 38 Figure 11: PVS’s company structure 38 Figure 12: PVS’s shareholder structure 39 Figure 13: PVS’s revenue 46 Figure 14: PVS’s revenue portion .47 Figure 15: PVS’s total operating expense 48 Figure 16:PVS’s expense 48 Figure 17: PVS’s profitability ratios 49 Figure 18: PVS’s liquidity ratios .51 Figure 19: PVS’s leverage 52 Figure 20: PVS’s asset structure .52 Figure 21: PVS’s operating ratios .53 Figure 23: PLX’s key milestones 57 Figure 24: PLX’s structure 58 Figure 25: Advantages of RON 95-V .61 Figure 26: PLX’s consolidated revenue 63 Figure 27: PLX’s compositions of consolidated revenue 63 Figure 28: PLX’s total operating expense 64 Figure 29: PLX’s compositions of total expenses 65 Figure 30: Profitability groups of PLX .66 Figure 31: PLX’s liquidity ratio 67 Figure 32: PLX’s leverage ratios 68 Figure 33: PLX’s earning ratios 69 Figure 34: PLX’s dupont analysis .70 Figure 35: Key milestones of PVC 74 Figure 36: PVC’s company structure 75 Figure 35: PVC’s shareholder structure 76 Figure 36: PVC’s business model .76 Figure 39: Major projects of PVC .78 Figure 40: PVC’s revenue 78 Figure 41: PVC’s compositions of Total expense 80 Figure 42: PVC’s total operating expenses .80 Figure 43: PVC’s profitability group 81 Figure 44: PVC’s liquidity ratios 82 Figure 45: PLX’s leverage ratio 83 Figure 46: PVC’s earning power .84 LIST OF TABLES Table 1: List of large gas and oil block in Vietnam 17 Table 2: List of Vietnamese oil and gas companies 18 Table 3: BSR’s major products 25 Table Product of BSR after expansion 26 Table 5: Revenue segmental analysis .28 Table 6: BSR’s expense 30 Table 7: BSR’s profitability ratios 31 Table 8: BSR’s liquidity ratio 32 Table 9: : BSR’s Leverage ratios 32 Table 10: BSR’s Operating ratios .33 Table 11: P/E of BSR’s Peers 33 Table 12: BSR’s P/E Valuation .33 Table 13: FCFE model of BSR 34 Table 14: Valuation of BSR 35 Table 15: PVS’s shareholder structure 39 Table 16: PVS’s equipment 43 Table 17: PVS’s ports .43 Table 18: PVS’s FSO/FSPO .44 Table 19: P/E of PVS’s peers 53 Table 20: FCFE model of PVS 54 Table 21: Valuation of PVS 55 Table 22: Major shareholders of PLX .59 Table 23: Shareholder structure of PLX 59 Table 24: Main products of PLX 61 Table 25: P/E of PLX’s peers 71 Table 26: FCFE model of PLX 71 Table 27: PVC’s revenue 82 Table 28: P/E of PVC’s peers 86 Table 29: FCFE model of PVC 86 Table 30: Valuation of PVC 87 ABBREVIATION EMDE - emerging market and developing economy BSR - Binh Son Refining and Petrochemical Joint Stock Company LPG - Liquified Petroleum Gas GDP – Gross domestic product CPI – Customer price index PLX – Vietnam National Petroleum Group PVC – Petrovietnam Chemical and Services Corporation PVS – Petrovietnam Technical Services Corporation IMF – International Monetary Fund IPI – Industrial Production Index SBV – State Bank of Vietnam CHAPTER 1: INTRODUCTION 1.1 Overview of the global and Vietnamese oil and gasoline market The outlook for oil market is uncertain because of the turbulence caused by the war between Rusia and Ukraine and fears of global recession The oil demand suffered from an increase in price and a deteriorating economic environment According to Oil Market Report of IEA, there was a decrease in the number of global oil demand, it went down to 99.2 mb/day (a decline of 1.7 mb/d) The demand is expected to raise 2.1 mb/d in 2023 due to the strong growth trajectory in non – OECD countries On August 3, the OPEC+ group is scheduled to meet to plan their course for September and possibly longer With recent additions centered in China, where refiners cut runs owing to decreased demand amid Covid lockdowns, global oil stockpiles remain critically low Due to substantial government stock releases, OECD industrial stocks have partially recovered but are still almost 300 mb below their fiveyear average The end of the year will see the full implementation of an EU embargo on Russian oil, which might result in another tightening of the oil market It may be up to demand-side actions to reduce consumption and fuel costs that threaten stability, particularly in emerging countries, as readily available spare capacity is running low in both the upstream and downstream Risks of the global economy veering off course for recovery remain significant in the absence of robust policy intervention on energy use In June, benchmark crude oil futures fell more than $20/bbl as a weakening economic outlook sparked a sell-off across the board WTI was trading at about $96/bbl at the time of writing, while Brent was trading below $100/bbl Due to the tight supply and increased seasonal demand for both oil and products, price premiums for physical barrels widened (IEA,2022) In Vietnam, crude oil and natural gas production declined due to the depletion of perennial fields The demand for petroleum is expected to increase by over 3% per year in the coming period Some oil and gas projects have started to show more positive signs, and are expected to start construction soon in the upcoming period 1.2 Area of the study The target of this study is to analyze the performance as well as evaluate the intrinsic values of the four leading Vietnamese companies in the petroleum field, namely Petrovietnam chemical and services corporation (PVC), PetroVietnam Technical Services Corporation (PVS), Vietnam National Petroleum Group (PLX), Binh Son Refining and Petrochemical Company Limited (BSR) 1.3 Study objectives The report has been developed in order to see the whole picture of the petroleum market then give valuable investment recommendations The purpose of this report is to provide advice for investors and a deeper understanding of the Vietnamese petroleum business Specifically, it aims at: providing a macroeconomic outlook in 2022 and analyzing key macro factors such as GDP, CPI, … analyzing the petroleum industry in Vietnam analyzing financial ratios for four selected companies which focuses on four main categories: profitability ratios, gearing ratios, investment ratios, and efficiency ratios calculating an intrinsic value for four selected companies to provide the final investment recommendations 1.4 Methods of the study The analyst uses a top-down analysis method which commences from macroeconomic and industrial situations After that, the study assesses the performance of each company and suggests a price through the result generated from the employed valuation models Sources of data analysed? FS of companies and … ??? Literature survey of related studies? 1.5 Organization of the study This study contains chapters The first chapter is the introduction which gives an overview of the global and Vietnamese oil industry The second and third chapter is about the macroeconomic and industry analysis respectively The analysis of four