3:33:51 PM | 11/11/2008
With the initial chartered capital of VND40 billion (US$2.4 million), SHINPETROLhas raised its capital base to VND138 billion (US$8.4 million) after five years of effective operation. SHINPETROL, with its shares coded VSP in the local stock market, has witnessed the highest growth rate among subsidiaries of the Vietnam Shipbuilding Corporation (Vinashin).
The company posted pretax profit of over VND226 billion (US$13.7 million) as of the second quarter of 2008, surpassing the target of the whole year, and over VND396 billion (US$24 million) as of the third quarter. In order to discover the story of this magic growth, reporter Anh Dao of Vietnam Business Forum had a talk with Mr. Nguyen Duy Hung, General Director of SHINPETROL.
Could you please give a brief introduction about the business results of SHINPETROL since early this year?
In order to speak of the business result of the company in 2008, we should have a look back the operations of SHINPETROL over the past years. Since the inception, we have set the main goal of making SHINPETROL to become a leading business in the field of sea transport, processing and distribution of oil and gas products, and investment into other fields such as infrastructure development of industrial parks, residential areas and entertainment zones. Therefore, right after the shares of SHINPETRO were listed on the Ho Chi MInh City Stock Exchange (HOSE) under the code of VSP, SHINPETROL created confidence for many foreign and domestic long-term investors. The company’s ratio of net profit on equity (ROE) was 43 per cent in 2006, and over 181 per cent in 2007. The confidence of investors was more strengthened after the company issued additional shares to scale up its registered capital from VND40 billion to VND138 billion in 12, 2007, with capital surplus of up to VND1.045 trillion. Under the plan of 2008, SHINPETRO targets to obtain pretax profit of VND220 billion, but its profit reached up to VND226 billion as the end of June, surpassing the whole year’s target. As of September, the company’s profit reached VND396 billion, accounting for 180 per cent of the year’s plan.
SHINPETROL has received many valuable awards this year, such as Medallion "Listed Company with Most Effective Operation in 2006-2007”, Gold Cup "Prestigious Securities Trademark” and "Vietnamese Leading Joint Stock Company". Could you please reveal the secret of the success?
The awards which SHINPETROL have been given during the past time are really the biggest encouragement for our company’s leaders and employees. They also demonstrate the confidence of investors in evaluating the real operational effectiveness of SHINPETROL. Thanks for this, the VSP shares have witnessed a strong appreciation during the past time.
SHINPETROL has been focusing on implementing the real goals of each project in order to bring the highest efficiency to the enterprise, given the company’s high profit growth through the years. With the capital surplus of over VND1 trillion via the registered capital increase in late 2007, we have bought three ships (VSP Titan, VSP Diamond and VSP Ruby) with weight of from 65,000 DWT upward, bringing effective operation currently. SHINPETROL targets to develop a fleet of 1.5 million DWT to run on international routes with an aim to create stable source of revenue and added value by 2012. Another key for the success is that SHINPETROL has built up its prestige since the inception. Foreign partners such as Wilhelmsen Ship Management and the Tramp Maritime have always appreciated our operation, which has helped affirm the trademark of SHINPETROL in the field of international sea transport.
In addition, VINASHIN Group, which is currently holding a 40.40 per cent stake in SHINPETRO, is always considered as a strong brand name in Vietnam as well as in the region, which creates favourable conditions for SHINPETROL to carry out its strategy of fleet development. Moreover, the Bank for Investment and Development of Vietnam (BIDV) is also in strong cooperation with SHINPETROL for the mutual development and best benefits for investors, strategic partners and communities.
Could you please introduce some projects invested by SHINPETROL currently and in the past?
SHINPETROL is operating mainly in the field of seas transport, with a fleet including cargo ships, oil tankers and LPG carriers, providing perfect and safe maritime services, meeting the highest demand for cargo transportation of clients inside and outside the country. The company is said to have one of the biggest fleets in the country. Currently, SHINPETROL has managed 10 ships totaling 350,000 DWT. On July 17, 2008, SHINPETROL officially inaugurated the one-member Nam Viet Sea Transport Limited Company, aiming at strengthening the effectiveness of management and exploitation of fleet, constantly increasing products and services, raising the transportation capacity of vessels. SHINPETROL targets by 2012 to have a fleet of 1.5 million DWT.
In terms of oil and gas field, SHINPETROL targets to be an agent for import, production, processing and distribution of oil and gas products by building and developing a system of LPG storages in all three regions in the country with a total capacity of 10,000 tonnes after this system meets standards as stipulated. For example, Can Tho – Nam Viet oil refinery plant has been built with a total investment capital of VND200 billion to meet the increasing demand for fuel and petrochemical products of industries in Vietnam. At the same time, the plant has also contributed to creating more jobs for local workers and promoting the development of the local economy. Currently, the factory is able to put out 5,000 barrels per day and mix products of from 500,000 to 1 million tonnes. Dinh Vu LPG Storage in Hai Phong Province, which was built on the idea of LPG receiving and stockpiling warehouse on a area of 20,520 square metres, has total capacity of 2,400 tonnes of LPG in the first phase, with total investment capital of VND207 billion.
In terms of the business scope of real estate and industrial parks, the highlight in this field is the 27-hole golf course project in Me Linh District, Vinh Phuc Province on an area of 217.6 hectares with total investment capital of US$1.2 billion. The project has been given the certificate of land use rights, expected to be kicked off in the first quarter of 2009. The project of VINASHIN Industrial Park in Long An Province has total area of 570 hectares in size, including 200 hectares in the first phase, of which 120 hectares are used for shipbuilding plant, drilling and vessel repairing platform, and 80 hectares are used for building general port. At present, the company has finished investment procedures and site clearance of 70 hectares.
In addition, SHINPETROL is also investing in a general recreational service zone project in Ha Khau (Ha Long, Quang Ninh Province). The project will be built on a total area of 22 hectares and a total investment capital of US$188 million. The project will comprise a system of high-quality villas, luxury apartments, five-star hotels and luxury restaurants along with entertainment zone, campus, parks and flower gardens.
On the occasion of the event “World Vietnamese Entrepreneurs Forum” first held in France, what would you like to talk with your colleagues?
On this occasion, SHINPETROL would like to send the thank to colleagues who have been companioning with us over the past years. I would like to wish Vietnamese entrepreneurs all over the world to overcome all difficulties and good success in production and business during the period of integration into the world.
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