operation process of petrolimex waterway petroleum transport joint stock company listed on the stock market 2

TABLE OF CONTENTSPageChapter 1: Overview of Petrolimex Waterway Petroleum Transport Joint Stock.1.1 Origin.1.2 Company Overview.1.3 Field.Chapter 2: Listing on the Stock Exchange.Chapter

NONG LAM UNIVERSITY

FACULTY OF ECONOMICS



Theme:

OPERATION PROCESS OF PETROLIMEX WATERWAY PETROLEUM TRANSPORT JOINT STOCK COMPANY LISTED

ON THE STOCK MARKET

Executor:

Subject Teacher : Ths Pham Thuy Dung

Implementation Team : 6

1 Phạm Thị Phương Trinh 21122785

TABLE OF CONTENTS

Page Chapter 1: Overview of Petrolimex Waterway Petroleum

Transport Joint Stock

1.1 Origin

1.2 Company Overview

1.3 Field

Chapter 2: Listing on the Stock Exchange

Chapter 3: Advantages and Disadvantages of Trading on

the Stock Market

3.1 Advantageous

3.2 Disadvantageous

Chapter 4: Factors affecting the Company's operations

4.1 Strengths

4.2 Weakness

4.3 Opportunites

4.4 Threats

Chương 5: Recomemendations

Bibliography

3 3 3 4 6

8 8 11 12 12 13 14 14 17 18

CHAPTER 1: OVERVIEW OF PETROLIMEX WATERWAY PETROLEUM TRANSPORT JOINT STOCK COMPANY

1.1 Origin:

- Vietnam Petroleum Group_PLX owns 2 corporations doing business in the field

of petroleum transportation:

+ Petrolimex Water Transport Corporation (PGT), doing water transport business

+ Petrolimex Petroleum Services Corporation (PTC), road transport business

- In addition, the Group also owns the longest petroleum transportation pipeline system in Vietnam with 570km stretching throughout all regions of the country

- Waterway, road and pipeline transport systems help the Group proactively ensure smooth transportation of petroleum from abroad to Vietnam, from import warehouses to ports and consumption agents in the country

1.2 Company Overview:

- Petrolimex Waterway Petroleum Transport Joint Stock Company is a member enterprise of Petrolimex Waterway Transport Corporation (PGT), also

petroleum transportation department of Petroleum Transportation Company (VITACO) , Vietnam Petroleum Corporation

- Implementing the policy of equitizing state-owned enterprises, PJTACO was established under Decision No 151/1999/QD - TTG, dated July 9, 1999 of the Prime Minister

- Officially operating since October 1, 1999 with charter capital at establishment

of 13.5 billion VND, of which Vietnam Petroleum Corporation contributed 30%, the rest came from shareholders in the company and from other shareholders

in member units of Vietnam Petroleum Corporation

- Head office located at: 7th Floor, Building 322 Dien Bien Phu, Ward 22, Binh Thanh District, Ho Chi Minh City

- Phone: (84) 283 991 101

- Fax: (84) 283 5121 775

- Email: www.pjtaco.petrolimex.com.vn

- Business code: 0301825283

1.3 Field:

- The company conducts business in many fields and industries related to petroleum, transportation, repair, etc But the main products are shipbuilding repair, marine petroleum transportation, and gasoline transportation inland waterway oil and Cambodia, Mechanical service business and oil contaminated waste treatment, Commercial service industry such as fuel supply, Vietnamese and international bunkering

CHAPTER 2: LISTING ON THE STOCK EXCHANGE

- PJTACO listed shares on the HOSE_Hochiminh Stock Exchange, this is the Ho Chi Minh City Stock Exchange, the first trading session was on December 28,

2006 with the stock code PJT At this time, the company has just increased its charter capital to 35 billion VND, which makes me both happy and worried Glad that the Company is on the right track, from now on there is one more capital mobilization channel, from now on there is one more transparent management tool But I'm still worried because after all, PJTACO is not a large enterprise If business does not go well, the stock price will decrease, making it susceptible to being taken over by outside shareholders But after 18 years, from an inland waterway transport unit, PJTACO has grown into an enterprise doing business in inland and international waterway transport, coastal and near-sea transport; The industry opens up petroleum business, shipbuilding, ship repair, and waste treatment for the maritime and petroleum industry And to do this is not easy because to be listed on one of Vietnam's major stock exchanges, companies must meet strict requirements:

1 The book value on the audit report of the charter capital at the time of registration for offering is 120 billion VND or more;

2 By the time of registration for listing on the stock exchange, the company must have operated in the form of a Joint Stock Company for more than 02 (two) years;

3 Up to the time of listing registration, the most recent profit must reach at least 5% of the capital, with no debt overdue for more than one year;

4 Within 02 years up to the time of listing registration, the company and its legal representative have not been handled for violations related to prohibited acts in securities trading activities;

5 There are at least 300 investors who are not major shareholders with the right to buy at least 20% of voting shares;

6 All debts of members of the Board of Directors, board of directors, chief accountant, major shareholders and related people must be publicized;

7 Individual shareholders, institutional shareholders and major shareholders of the company must commit to holding 100% of the shares in the first 6 months and 50% of the shares in the next 6 months;

8 The company's shares have been traded on UPCOM for at least 02 years, approved by the company's general meeting of shareholders;

9 The application file for stock listing registration meets the regulatory

requirements of HOSE

CHAPTER 3: ADVANTAGES AND DISADVANTAGES OF

TRANDING ON THE STOCK

3.1 Advantageous :

- Since PJTACO joined the stock market, it has helped the company increase its charter capital many times over the years:

+ 1999: Riverway Petroleum Transport and Repair Enterprise was transformed into Petrolimex Waterway Petroleum Transport Joint Stock Company with an initial charter capital of 13.5 billion VND

+ 2003: Increased charter capital to 14.5 billion VND

+ 2004: Increased charter capital to 19.37 billion VND

+ 2006: Increased charter capital to 35 billion VND

+ December 28, 2006: Officially traded to create the Stock Exchange

+ May 2008: Increased charter capital to 70 billion VND

+ 2009: Increased charter capital to 84 billion VND

+ September 2013: Increased charter capital to 96.59 billion VND

+ August 2014: Increased charter capital to 108.17 billion VND

=> General comment on the 5 year period from 2016 - 2020, PJT believes that this is a period that marks the Company's steady development, specifically: The scale of assets and capital increased from 1.5 to 1.8 times; Total revenue and

profit have grown steadily over the years; Dividends received by shareholders over the years also met expectations

- PJTACO sets its 2021 profit target to go backwards, increasing its charter capital to 230 billion VND

+ At the end of 2020, the Company's total revenue reached 621.5 billion VND, pre-tax profit reached 33.7 billion VND and after-tax profit reached 26.9 billion VND

+ In 2021, PJT sets a revenue target of 692.3 billion VND, an increase of 11% compared to 2020; However, the target pre- and after-tax profit went backwards by 7% and 6% compared to the previous year, to only VND 31.5 billion and VND 25.2 billion Expected dividend rate is 8-10%

- Currently, in terms of business situation, at the end of the second quarter of

2023, PJT revenue reached 192.18 billion VND, down 7% over the same period last year; On the contrary, profit after tax increased 5 times to 9.14 billion VND

- PJT said that due to the increase in transport output and revenue in the first

6 months of the year, its fleet is operating effectively, the ocean fleet

transports a number of long shipments and combines two-way transport to save costs fuel In addition, in the same period last year, fuel prices increased dramatically, leading to increased fuel costs, accounting for a high proportion

of transportation costs

- Accumulated in the first 6 months of the year, the company recorded 380 billion VND in revenue, slightly down compared to the same period last year and profit after tax reached 15.1 billion VND, 6.5 times higher than the same period last year

- In 2023, PJT plans to bring in 757 billion VND in revenue and 18.4 billion VND

in profit after tax At the end of the first 6 months of the year, the business has completed 50% of the revenue plan and 81.5% of the yearly profit target

- As of June 30, 2023, PJT total assets reached 495.7 billion VND, a slight increase compared to the beginning of the year Of which, mainly long-term assets account for 71% with 352 billion VND, short-term assets account for 29% with 143.6 billion VND

- The company's cash and cash equivalents were at 73.4 billion VND, inventory recorded at 39.6 billion VND Meanwhile, liabilities are at 200 billion VND, accounting for 40% of total capital, with short-term debt accounting for 38.5%

of total liabilities

3.2 Disadvantage:

Starting a business with 13 billion VND and 3 difficulties In 1999, it was considered the most difficult unit of Petrolimex with tight finances:

1 The book value at that time was very small, the factory was almost a room

of VITACO; business was ineffective, so there were proposals to dissolve this enterprise After equitization, with an outdated technology platform, low-skilled workers, the unit's scope of operations is only very small => the

company has a very small scale in the industry

2 In 2006, the company was officially listed on the stock exchange, but PJTACO is not yet a large enterprise If business is not favorable, the stock price drops, and is easily taken over by outside shareholders, can it still retain

CHAPTER 4: FACTORS AFFECTING THE COMPANY’S

OPERATIONS

4.1 Strengths:

- Great brand value:

+ The Petrolimex brand is famous in the domestic and international markets with more than 65 years of experience in the petroleum business In 2020, Petrolimex ranked the list of 50 leading brands by value in Vietnam (according

to Brand Finance) This is a strong point to pay attention to when analyzing Petrolimex's SWOT model

+ In 2019, Petrolimex reached the Top 50 leading brands and Top 10 most valuable brands in Vietnam In 2020, the entire Group promoted investment in developing a modern retail network, focusing on locations with commercial advantages along with piloting a new brand identity This is a strong point to pay attention to when analyzing Petrolimex's SWOT model

- The Group has also established a specialized brand protection committee to inspect and handle trademark violations In particular, in the recent context of a series of fake gasoline smuggling rings being destroyed by investigation

agencies, the quality of gasoline on the market has become a topic of public concern Poor quality of gasoline and oil has a direct impact on consumers, not

potentially endangering consumers against the risk of fire and explosion Therefore, the issue of ensuring the quality of petroleum products is always a top priority for the Group's leaders

- Market leader: Petrolimex is the largest importer and distributor of petroleum

in Vietnam, holding a dominant position in the market

- Extensive distribution network: The company has an extensive network of distribution points, including fuel stations and warehouses, providing a competitive advantage in reaching customers

- Diverse product portfolio: Petrolimex provides a variety of petroleum products and related services, meeting the diverse needs of customers

- Strong Government support: As a state-owned enterprise, Petrolimex benefits from Government support and favorable policies, enhancing stability and influence in the market

- Administrative organizational structure is inflexible, slow to adapt to market changes, hindering the process of innovation and development to improve business efficiency of enterprises

4.3 Opportunities:

- Currently, the liquefied natural gas (LNG) supply market is increasing PJTACO has the opportunity to enhance LNG transportation services to meet the growing needs of producers and consumers

- Expanding services: PJTACO can explore diversifying into other liquid cargo transportation services beyond petroleum, tapping into new market segments and increasing revenue streams

- Technological advances: Investing in advanced technology to improve ship efficiency, safety and environmental sustainability can enhance a company's competitive advantage and operational capabilities

- Strategic partnerships: Cooperating with international companies and taking advantage of technological advances can enhance Petrolimex's capacity and competitiveness

4.4 Threats:

- Environmental Concerns: The petroleum industry faces increasing scrutiny over environmental impact, and Petrolimex may face challenges in aligning with sustainable practices

- Economic fluctuations: Economic fluctuations and geopolitical tensions can impact the demand for petroleum products, affecting Petrolimex's revenue and profits

- Technological Change: New technology and the development of renewable energy are changing the oil and gas industry

- Fierce competition: The petroleum industry is highly competitive, with the presence of domestic and foreign enterprises threatening Petrolimex's market share

- Great brand value

- Trademark copyright

- The organization is inactive

- Not being proactive about prices

- Competitors.

- Changing modern technology

- Weather

- World political situation

CHAPTER 5: RECOMMENDA8TIONS

Petrolimex is one of the leading petroleum companies in Vietnam, therefore, there are some recommendations that can be considered for the company:

- Market diversification: Petrolimex may consider diversifying its market

presence by expanding into new geographical areas or exploring opportunities

in related industries such as renewable energy or logistics

- Environmental protection: apply risk management measures and methods to ensure safe and sustainable transportation activities

- Technology integration: Leveraging digital transformation and integrating technological advances such as IoT (Internet of Things) to optimize operations, analyze data for predictive maintenance, and enhance experiences of customers through digital platforms can benefit Petrolimex

- Strategic partnerships: Collaboration with international oil and gas companies,

These are broad recommendations and Petrolimex's specific circumstances, objectives and market conditions will need to be analyzed in more detail to effectively tailor these recommendations

Bibliography

1 https://pjtaco.petrolimex.com.vn/gioi-thieu/gioi-thieu/gioi_thieu_pjtaco.html

2 https://www.stockbiz.vn/Stocks/PJT/Snapshot.aspx

3 https://accgroup.vn/dieu-kien-niem-yet-tren-san-hose

4

https://finance.vietstock.vn/PJT-ctcp-van-tai-xang-dau-duong-thuy-petrolimex.htm

5

https://24hmoney.vn/news/lanh-dao-van-tai-xang-dau-duong-thuy-petrolimex-muon-thoai-bot-von-c1a2016287.html

6 https://pjtaco.petrolimex.com.vn/nd/bao-chi-viet/ky-tich-pjtaco.html

7 https://www.studocu.com/vn/document/dai-hoc-ton-duc-thang/dinh-huong-nghe-nghiep/dinh-gia-doanh-nghiep-phan-tich-swot/66636816

8 https://brademar.com/phan-tich-mo-hinh-swot-cua-petrolimex-2/