AsemconnectVietnam - At the 2024 Annual General Meeting of Shareholders scheduled to be held on May 24, CNG Vietnam Joint Stock Company (code CNG) will present shareholders with a business plan with a profit target of reducing up to 19% compared to the previous year. In 2024, CNG targets total CNG output of 210 million SM3; Total LNG production is 30 million SM3.

Accordingly, the Company expects total revenue (including sales revenue and financial revenue, other) to be VND3,062 billion and profit after tax to be VND88.7 billion, down 2.5% and 19%, respectively compared to implementation in 2023.
To come up with this plan, CNG based on the temporary Brent oil price of 70 USD/barrel; FO oil price is 3.5%S (14.6 million VND/ton) and CP price is 619 USD/ton.
CNG's Board of Directors believes that the Company will have favorable conditions thanks to the attention and support of shareholders, especially major shareholders such as PV Gas, and a team of engineers and skilled operators with professional qualifications and experience, with an infrastructure and logistics system to serve gas supply that is synchronous and spread across the country, etc. CNG is expected to encounter some difficulties and challenges.
Specifically, the world economic situation fluctuates rapidly, is complex, and difficult to forecast; Demand for fuel in production has declined, especially for customers in the construction materials and iron and steel industries. In addition, fuel prices are expected to continue to remain high, creating great pressure on growth recovery.
Not to mention, the gas supply for CNG production in the North has declined sharply, leading to a supply shortage for existing consumers; The LNG market is forecast to have many unpredictable fluctuations in supply and price.
Regarding the dividend plan, CNG will simultaneously pay a 12% dividend for both 2023 and 2024.
At the end of the first quarter of 2024, CNG recorded net revenue of VND631.4 billion, down 14.6% over the same period last year. Although the Company has tried to reduce costs, profit after tax still dropped sharply to more than VND1.3 billion, only 1/17 of the profit in 2023 of nearly VND23 billion. However, in the first quarter of 2023, CNG has nearly VND17.8 billion as environmental risk reserve reversal, so if only compared to the profit from main production and business activities of VND5.2 billion, the CNG's profit after tax in the first quarter of 2024 decreased by 74%.
According to CNG's explanation, gas sales volume in the first quarter of 2024 decreased compared to the same period last year, causing sales revenue to decrease. At the same time, the increase in input gas purchase prices in the first quarter of 2024 compared to the same period last year is the main reason leading to a decrease in profit after tax and corporate income tax over the same period.
Compared to the expected yearly plan, CNG has only achieved about 1.5% of the year's profit target.
N.Nga
Source: VITIC/Tinnhanhchungkhoan