At the annual general meeting on the morning of 24/4, many shareholders of PetroVietnam Oil Corporation (PVOIL) observed a gradual shift from gasoline to electric vehicles among the public. They expressed concern that this trend would negatively impact the company's consumption volume and financial targets, requesting management to present response strategies.

Cao Hoai Duong, Chairman of PVOIL's Board of Directors, agreed that the transition from gasoline to electric vehicles is an inevitable and irreversible trend. He noted this would slow the growth rate of petroleum consumption and could lead to stagnation in the near future.

Cao Hoai Duong addressing shareholders at the annual general meeting on the morning of 24/4. Screenshot

However, Duong emphasized that PVOIL is not concerned about electric vehicles negatively affecting petroleum sales; rather, it views this as an opportunity to develop new revenue streams. He revealed the company signed a cooperation agreement with VinFast in 2018, and four years later, began building charging stations at its gas stations. Currently, about 500 of its 995 gas stations integrate charging facilities. The company plans to develop an additional 100 gas stations annually, all equipped with electric vehicle charging stations.

"We view developing both the petroleum retail system and charging stations as a dual-pronged approach, serving both customer groups," Duong said, highlighting PVOIL's direction to transform each station into an integrated energy supply hub.

While not disclosing specific figures as requested by shareholders, the Chairman of PVOIL's Board of Directors stated that the non-fuel services segment is "quite profitable." According to him, this segment contributes about 20-30% of the profit for member units.

PVOIL's integrated gas station and charging station in Ho Chi Minh City. Photo: PVOIL FB Fanpage

Regarding policies restricting internal combustion engine vehicles in major city centers, management assessed the impact as minor, given that PVOIL's station network is primarily concentrated in suburban areas and provinces.

PVOIL is a member unit of Petrovietnam, primarily operating in three areas: crude oil import and export, and petroleum production and distribution. It ranks second in domestic petroleum consumption volume, holding approximately 23% of the market share, after Petrolimex. Its distribution network includes about 995 directly-owned stations and thousands of agents and franchises.

This year, the company targets a revenue of 150,700 billion VND, similar to last year, with pre-tax profit expected to increase by 25% to 820 billion VND.

Explaining the planned profit surge amid a volatile petroleum market, General Director Nguyen Dang Trinh stated that the actual target does not differ significantly from the same period last year. The noticeable change in figures is because last year the company provisioned 150 billion VND for an investment in an associated company, which eroded its profit.

PVOIL shares are currently traded on the UPCoM market. Management indicated that they are gradually addressing qualified opinions on the audit report to submit listing documents to the Ho Chi Minh City stock exchange. The company anticipates a potential stock exchange transfer in 2027.

Phuong Dong