(TIỂU LUẬN) INDIVIDUAL ASSIGNMENT

Vietnam Gas Corporation - JSC GAS ● The predecessor of the company was Gas Company with the task of collecting, transporting, processing, storing and trading gas and gas products was est

INDIVIDUAL ASSIGNMENT

_ACC305_FIN1403_

Lecturer: Nguyễn Phú Hà Student: Lê Thị Thu Hương_ HS140298

TABLE OF CONTENTS

I.

Introduction 2

I Introduction

1 Vietnam Gas Corporation - JSC (GAS)

● The predecessor of the company was Gas Company with the task of collecting,

transporting, processing, storing and trading gas and gas products was established in 1990 In July

2007, became Gas Corporation Operating under the model of Parent company - Subsidiary company

In 2011, the company converted to operate under the model of a joint stock company with the name

of Vietnam Gas Corporation - a joint stock company with an initial charter capital of VND 18,950

billion In May 2012, the company's shares were listed and traded on the Ho Chi Minh City Stock

Exchange Ho Chi Minh City with stock code GAS After nearly 30 years of operation, Vietnam Gas

Corporation (PV Gas) has continuously developed, expanded and is considered as the leading

enterprise in the gas industry in Vietnam PV GAS brand has become familiar, becoming a strategic

energy supplier for almost every household in electricity, fertilizer, steel and many industries,

transporttion, food, commercial and civil with reputation and quality guaranteed

● Vietnam Gas Corporation - JSC is a member unit of the Vietnam National Oil and Gas

Group, operating in the fields of collection, transportation, processing, storage, distribution and

trading of gas products nationwide and expand to international markets Organizing the distribution

and trading of dry gas, LNG, CNG, LPG

Condesate products Architectural activities and related technical consultancy, details: Investment consultancy, design and construction of mechanical engineering industrial works Supervising the construction and improvement of industrial and civil works

Other specialized trading, details: Trading in materials, equipment, chemicals in the field of gas processing and use, importing materials, equipment and means to serve the gas industry Invest in the infrastructure of the distribution system of dry gas and liquid gas products from the source from supply to wholesale and retail distribution

Research and develop practical natural science and engineering Providing services in the field of gas, renovating, maintaining and repairing engines, installing conversion equipment for means of transport and agriculture, forestry and fishery using gas fuel

❖ Product

● Liquefied Petroleum Gas (LPG)

● Condensate (Condensate)

● Compressed natural gas (CNG)

● Liquefied natural gas (LNG)

● Petroleum steel pipes

❖ Service

● Transportation of gas and gas products

● Design, construction, installation, operation, maintenance and repair of gas works

● Warehousing services for gas import and export services

● Supply of materials and equipment for the gas industry

● Oil and gas pipe wrapping (anti-corrosion coating, insulation, reinforced concrete)

❖ Holding by management and stakeholders

Mr Nguyen Sinh Khang Chairman of the board

Mr Duong Manh Son Chief Executive Officer

Mr Nguyen Cong Luan chief accountant

Ms Tran Thi Hoang Anh Supervisory Board

2 Assets of PV GAS

● Bach Ho-Phi gas pipeline system: PV Gas owns 100% of this pipeline to transport associated gas from Rang Dong and Bach Ho fields in Cuu Long sedimentary basin to shore to supply gas to the treatment plant Dinh Co gas plant, Ba Ria, Phi Phi power plants, Phi Phi fertilizer plant the pipeline system was completed in the first phase in 1995, the second phase in

2002, with a capacity of 2 billion m3/year, with a length 220 km, 16'' diameter Bach Ho pipeline system has been fully depreciated

● Nam Con Son pipeline system: PV Gas owns 51% of the gas pipeline from Lan Tay, Rong Doi, Rong Doi Tay fields in Nam Con Son basin, supplying gas to Phi Complete

power plants phase one on 01/01 2002, phase two on October 16, 2008, capacity

7 billion 3 years, length 400 km, pipe diameter 26''

● P 3-CAA pipeline system: PV Gas is 100% owned by PV Gas Gas pipeline from fields

in P 3-CAA area to supply gas to Ca au Power - Fertilizer Complex The pipeline is completed in May

2007 with a capacity of 2 billion m3/year, with a length of 330 km • Pipeline system from Block B to

O Mon: expected capacity of 7 billion m3/year, supplying gas for O power plants Subject The

longest pipeline project in Vietnam has a total investment of 1.3 billion USD, in which, PVGAS holds 51% shares, while Chevron of the US, MOECO of Japan and PTTEP of Thailand own 49% etc

3 Business activities

● PV Gas' business activities are very specific and specialized The main activities of the company include natural gas production; collecting, transporting and storing gas and gas products; distribution of gaseous fuel through the pipeline system; import and trade dry gas, liquefied petroleum gas (LPG), condensate, liquefied natural gas (LNG), compressed natural gas (CNG) and gas engine conversion

II SWOT

1 Strength

● The dominant position in the Vietnamese market and no direct competitors

● All pipeline systems in Vietnam are under the control of PV Gas, so cash flow is more stable and dependence on world prices is slightly reduced

● High barriers for businesses wishing to operate in the upstream sector further strengthen

PV Gas' position

2 Weakness

● Business activities are based on natural resources, and resources will be exhausted after

a certain time of exploitation

● Large investment capital

● Profit margin of import activities is lower than domestic production

3 Opportunity

● Demand for dry gas is increasing thanks to improved capacity of power plants and fertilizers

● Increased demand for clean fuels due to climate change concerns

● The introduction of shale gas in the US has improved the outlook for LNG imports as LNG is likely to become cheaper

● New gas field discoveries in Central Vietnam with commercial potential

4 Threat

● Territorial and political disputes in the East Sea may have a material impact on gas exploration and storage activities Competitive market penetration by private companies in the

downstream segment

● Dangerous illegal gas extraction is still happening, has indirect but negative impacts on member companies in the retail market and incurs additional production costs for gas cylinders

III Analysis

Analyze the company's financial indicators and compare them with the index of the

consumer goods industry

1 Growth

2018 2019 2020 Revenue 75,976,346 75,310,107 64,134,965 Revenue (%) 17.19% -0.88% -14.84% Profits after tax 11,708,565 12,085,651 7,971,791 Profits after tax (%) 17.82% 3.22% -34.04% Total assets 62,614,420 62,178,787 63,208,401 Total assets (%) 1.17% -0.70% 1.66% Total equity 46,867,125 49,614,531 49,499,681 Total equity (%) 8.31% 5.86% -0.23%

● Overall, the growth rate of revenue, profit after lease and total equity tends to decrease from 2018 to 2020 GAS has a revenue in 2018 of 75,976,346 million and a decrease of 11,841,381 million in 2020 compared to 2018 negative growth from 17.19% in 2018 to -14.84% in 2020 In

2020 due to the covid19 epidemic, businesses are affected a lot

● From 2018 to 2020, the data show that profit after tax tends to decrease sharply from 17.82% to -34.04% Total asset growth rate is not stable From 2018 to 2019, the

business tends to decrease by about -0.70% in 2019, but according to data, it will grow back to about 1.66% in 2020 Total equity has plummeted in 2020, with about 8.31%

in 2018 plummeting to -0.23% in 2020

2 Liquid Ratio

a Current ratio

2018 2019 2020 Current asset 40,932,013 41,815,397 39,472,227

Current

liabilities 11,846,614 9,964,436 9,748,781

Current ratio 3.46 4.20 4.05

● Looking at the chart, we can see that the current ratio in 2018 has increased by 21% compared to 2019 GAS had it current ratio covered from 3.46 in 2018, increase slightly about 4.20 times in 2019, down about 4.05 times over 2020 These ratios lie between 3 to 4 – an

unhealthy range for the firm’s liquidity

● The data shows that the current liabilities of the business are quite high From 2018 to

2020, current liabilities tend to decrease slightly from 11,846,614 million in 2018 to 9,748.781 million in 2020

b Quick Ratio

2018 2019 2020

41,815,39 Current asset 40,932,013 7 39,472,227 Inventories 1,948,260 1,574,703 1,662,573 Current liabilities 11,846,614 9,964,436 9,748,781

Quick ratio 3.29 4.04 3.88

● The quick ratio indicates the company's ability to immediately use near-cash assets

(assets that can be quickly converted into cash) to pay off the company's current liabilities

● In general, the company's quick ratio increased slightly to about 4.04 in 2019, but then

decreased slightly to about 3.88 in 2020 Short-term debt of enterprises has also decreased over

the years from 11,846.614 million in 2018 to 9,748.781 million in 2020 According to the data,

the quick ratio of 3 years is quite high, reaching over 3, showing high ability to pay short-term

debts

3 Efficiency Ratio

a Inventory Turnover

2018 2019 2020 Average Inventories 1,796,818 1,761,482 1,618,638 Cost of goods sold 58,120,228 58,086,689 52,728,950 Inventory turnover 32.35 32.98 32.58

● The inventory turnover shows how well the company manages inventories, if the number

is high, the company quickly and the inventories are not selling much

● Overall, GAS's inventory turnover is relatively high, the highest number of inventory turnover in 2019 In 2018 it was 32.35 turn over, in 2019 a slight increase was 32.98 turn over and a negligible decrease in 2020 was 32.58 turnover According to the data, the company is effective in inventory management

b Account receivable turnover

2018 2019 2020 Total revenue 75,611,546 75,005,297 64,134,965 Account receivable 21,602,454 24,915,000 21,613,236 Account receivable turnover 3.50 3.01 2.97

● This indicator shows the company collects low receivables from customers GAS index compared to the market is quite low, only about 4 rounds The number has decreased over 3 years, in 2018 about 3.50 turn over, in 2020 only 2.97 turn over It showed the company had a poor collection process, a bad credit policy, or the inability of its customers to pay

c DSI and DSO

2018 2019 2020 Inventory turnover 32.35 32.98 32.58

Account receivable turnover 3.50 3.01 2.97

● DSI indicates the length of time a company's cash is stuck in liquidity because of unsold inventory According to the data sheet, the enterprise's DSI index is quite clickable for only 11 days The business regularly sells out of inventory and has maintained the figure for 3 years

● DSO of the enterprise has been in the year for 3 years From 103 days 2018 to 121 days 2020

4 Leverage Ratio

a Total debt to Total assets

2018 2019 2020 Total Assets 62,614,420 62,178,787 63,208,401 Total Debt 15,747,295 12,564,256 13,708,720 TD/TA 25.15% 20.21% 21.69%

● The total debt-to-assets ratio is a type of leverage ratio that determines the total amount

of debt relative to assets, allowing comparisons of leverage used across different companies

GAS's TD/TA ratio has decreased over the years About 25.15% in 2018 then fell sharply,

accounting for about 20.21% in 2019 and slightly increased in 2020 at 21.69% According to the

chart, the total assets of the enterprise are quite high and stable over the years From 2018 to

2020, total assets are 62,614,420 million, 62,178,787 million, 63,208,410 million respectively

b Coverage Ratio

2018 2019 2020 Interest Expenses 440,018 197,610 101,218

15,068,26 Total profit before taxes 14,539,922 3 9,978,064

15,265,87 EBIT 14,979,940 3 10,079,282 Interest Coverage Ratio 34.04 77.25 99.58

● This indicator of a company's solvency and the fulfillment of financial obligations

such as interest payments Being counted "EBITDA / interest expense" GAS index is quite high, easy to pay interest expenses

● The interest coverage ratio has increased throughout the period, in 2018 with around

34.04 This number has increased sharply in 2019 to about 77.25, in 2020 Interest coverage ratio continues to increase sharply to about 99.58

c Rerturn on assets

2018 2019 2020 Profits after

tax 14,539,922 15,068,263 9,978,064 Net revenue 75,611,546 75,005,297 64,134,965 ROS 19.23% 20.09% 15.56%

● In general, from 2018 to 2020, the profitability ratio ROS has not grown steadily Return on net sales (ROS) is an important factor for managers because it indicates the ability

to control operating costs as well as reflects the efficiency of business processes It shows the profit generated from the sale of the product In 2018 ROS accounted for 19.23% and

increased slightly by 20.09% in 2019 Howover in 2020, this number has decreased slightly

by 15.56% This number decreased insignificantly, the company's ROS was quite high

d ROA

2018 2019 2020 Profits after 14,539,92 15,068,26 9,978,064

Total Assets 62,614,42 62,178,78 63,208,40

ROA 23.22% 24.23% 15.79%

● Return on assets (ROA) measures how effectively a company is managing its assets With

1 dollar of initial investment assets, how much profit can the company generate

● Like Profit Margin, GAS's ROA from 2018 to 2019 grew quite from 23.22% to

24.23%, but then dramatically deteriorated by 15.79% from 2019 to 2020 This plummeting results from the growth in total assets For the year 2020, This finger shows its global revenue -14.84% from the year before

e ROE

2018 2019 2020 Profits after tax 14,539,922 15,068,263 9,978,064

Owner's equity 46,867,125 49,614,531 49,499,681

ROE 31.02% 30.37% 20.16%

● Return on Equity is a measure of how much the shareholders earned for their

investment inthe company This ratio shows how profitable a company is by comparing net income total equity ROE of Ford has decreased every year from 2018 to 2020 ROE in 2018 was 31.02%, this figure decreased slightly in 2019 to 30.37% From 2019 to 2020, the profit after tax had deteriorated slightly to about 9,978,064 million As a result, ROE has also plummeted to 20.16% in 2020

IV Conclusion

● In general, this is only a standard assessment basis for a stock to invest in (GAS reaches

29 standards / 31 standards The COVID-19 pandemic has clearly defined the capabilities of both individual customers and customers Therefore, the numbers themselves are only evaluated as valid for the company's main position and position over the years

● Financially, PVGAS is a fairly stable enterprise over the years Fast growth, asset structure, capital balance, good liquidity, fast asset turnover and stable and improving profitability indicators

V References

BSC company (2021) Prospective financial report of the oil and gas industry

https://www.bsc.com.vn/Report/ReportFile/2738400

Bao nhan dan (2010) Promoting the strength of the gas industry https://nhandan.vn/tin-tuc-xa-hoi/Ph%C3%A1t-huy th%E1%BA%BF-m%E1%BA%A1nh-ng %C3%A0nh-c

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