INDIVIDUAL ASSIGNMENT

_ACC305_FIN1403_

Lecturer: Nguyễn Phú Hà

Student: Lê Thị Thu Hương_ HS140298

TABLE OF CONTENTS
I.
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Introduction 2
1.Vietnam GAS Comporation - JSC 2
2. Assets of PV GAS 2
3.Business activities 2

II.SWOT 2
III.Analysis 2
1.Growth 2
2.Liquid ratio 2
3.Eficiency turnover 2
4. Leverage ratio 2

IV.Conclusion 2
V.References 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
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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.

Name Position
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
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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
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● 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
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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
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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
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● 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
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● 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 11 11 11
DSO 103 120 121

● 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.
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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
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● 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%
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● 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
tax 2 3
Total Assets 62,614,42 62,178,78 63,208,40
0 7 1
ROA 23.22% 24.23% 15.79%
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● 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%
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● 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%C3%B4ng-nghi%E1%BB%87p-kh%C3%AD-%C4%91%E1%BB%91t-
498143