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PETROVIETNAM

PRESSURE
DISTRIBUTION
STOCK COMPANY

Clean Energy
Green Era
ANNUAL REPORT 2013
www.pvgasd.com.vn

LOW
GAS
JOINT

Building PETROVIETNAM LOW PRESSURE GAS DISTRIBUTION JOINT STOCK COMPANY


(PV GAS D) to become a powerful JSC with the worldwide geographical operations.
Diversifying business lines with center of business low pressure gas by pipeline and
paying attention to develop services, financial investment & commerce.
GENERAL INFORMATION
PetroVietnam Low Pressure Gas Distribution Joint Stock Company (PV GAS D)
formerly known as Vung Tau Low Pressure Gas Trading Enterprise was established in
2002 under PV GAS.
On 12/04/2007, PetroVietnam Low Pressure Gas Distribution Joint Stock Company
(PV GAS D) was established pursuant to Decision No. 1109/QD-DKVN by Board of
Directors (PetroVietnam Gas Corporation) and operated according to Certificate of
Business Registration No. 0304998686 issued on 23/5/2007 by Ho Chi Minh City
Department of Investment & Planning with initial charter capital of VND
330,000,000,000.
Transactions name

PetroVietnam Low Pressure Gas Distribution Joint Stock


Company
Certificate of Business No. 0304998686 issued on 23/5/2007 by Ho Chi Minh City
Registration
Department of Investment & Planning; the 06 th change
registration dated 25/5/2012.
Charter capital
VND 429 billion
Investment capital of VND 429 billion
owner
Address
The 07th floor, PV GAS Tower, 673 Nguyen Huu Tho, Phuoc
Kien Commune, Nha Be District, Ho Chi Minh City
Tel
08 3784 0445
Fax
08 3784 0446
Website
www.pvgasd.com.vn
Stock code
PGD

The leading distributor of low pressure gas for Industrial Parks in Vietnam
PV GAS D is consistent with the strategic objectives and direction, vision and
mission in all activities. PV GAS D is proud to have built a solid foundation, a clearly
developing route and promising for future of PV GAS D
CONTENTS
GENERRAL
INTRODUCTION
6-21

08 Messages from
the President of the
Board of Directors
09 Business lines &
locations
12
Process
of
formation
and
development
14
Structural
diagram,
organizational chart
16
Board
of
Directors
18
Board
of
Supervisors
20
Board
of
Management

REPORT
OF BUSINESS
MANAGEMENT
MANAGEMENT
BOARD
42-59
22-41

24 Orientation for
development
26
Business
&
production situation
28 Investment &
project
implementation
situation
30
Financial
situation
32
Shareholders
structure, changing
investment capital
of owner
34
Report
and
assessment
of
Management Board
38 Assessment of
Board of Directors

44
Board
of
Directors
50
Board
of
Supervisors
52 Employees and
staffs, policies for
labors
54 Risks
56 Implementation
of
policies
on
Safety Quality
Health

Environment
58
Community
activity
59
Achievements
and Awards

AUDITED
FINANCIAL
STATEMENT
60-68

62
Report
of
Board of Directors
64
Independent
financial
statement
65 Balance Sheet
67
Business
Income Statement
68
Cash
flow
statement
69
Notes
to
financial
statement

OPEN CLEAN ENERGY


1. GENERAL INTRODUCTION
08
09
12
14
16
18
20

Messages from the President of the Board of Directors


Business lines & locations
Process of formation and development
Structural diagram, organizational chart
Board of Directors
Board of Supervisors
Board of Management

MESSAGE FROM THE PRESIDENT OF THE BOARD OF DIRECTORS

Consistence with the strategic objectives and direction, vision and mission in all
activities. PV GAS D is proud to have built a solid foundation, a clearly developing
route and promising for future of PV GAS D. With the clearly determination of vision
and mission as well as the results achieved in the past year, we confirmed that PV
Gas will continue to grow strong and sustainable in the coming years and continue
becoming The leading distributor of low pressure gas for Industrial Parks in
Vietnam.
Ladies and Gentlemen,
First of all, I, representing the Board of Management of PetroVietnam Low Pressure
Gas Distribution Joint Stock Company(PVGASD), would like to express our sincere
thank to Vietnam Oil and Gas Group, PetroVietnam Gas Joint Stock Corporation the
whole shareholders, investors, partners, customers agencies, groups for having
trusted, cooperated and supporting us. In additions, we also would like to express
our sincere thanks to the whole staff and officers of PVGASD for your contribution to
the establishment and development of a dynamic, professional, prestige and
sustainable PVGASD trade mark.
Consistent with our aim and strategic orientation, vision and mission in all
activities, we are proud to have built up a firm foundation and a clear and
prospective development schedule for PVGASD in the future. For over 06 years
since our foundation as a new enterprise with lots of difficulties, PVGASD has been
now able to confirm our brand in distributing natural gas, getting reliance from
customers and becoming distributor of low-pressure gas for biggest industrial zones
in Vietnam. With a strong and determined method, PVGASD has seized and
controlled technology, taking full initiative in investment, operation and exploitation
of low-pressure gas system. During the years, PVGASD always complete expected
criteria and plan. It is expected that in the next year, the world and domestic
economy continue to face difficulties and economic recession still exists.
Responsibility of PVGASD, then, becomes more challenging and difficult. However,
due to developing impetus, advantages and prestige that the company has gained
along with advantages and strength of product, market, distribution system as well
as technology and attempt of the whole staff and officers of PVGASD, the Board of
Management of the Company believe that PVGASD will overcome all difficulties and
challenges to confirm PVGASDs position and trade mark. In 2014, we continue to
increase investment to expand the available low pressure gas distribution system in
provinces as Ba Ria Vung Tau, Dong Nai, Ho Chi Minh City and continue investing
in building the low pressure gas distribution system in Tien Hai Industrial Park Thai
Binh.
Defining our vision and mission clearly along with our achievements in recent
years, we confirm that PVGASD will continue to grow strongly and sustainably in the
following years and continue to be the leading distributor of low pressure gas for
Industrial Parks in Vietnam.

Sincerely,
President of the Board of Directors
Pham Van Hue

BUSINESS LINES & LOCATIONS


Main business lines:
Sale, transport low pressure gas by pipeline.
Main business locations:
Phu My - My Xuan - Go Dau, Ba Ria - Vung Tau
Nhon Trach Industrial Park, Dong Nai Province
Hiep Phuoc Industrial Park, Ho Chi Minh City

429

CHARTER CAPITAL: VND


billion
OUTSTANDING EVENTS
On 19/11/2009, PV GAS D received Decision of Registration approval for listing No.
145/QDSGDHCM issued by Ho Chi Minh City Stock Exchange.
On 26/11/2009, the share of PV GAS D officially listed on Ho Chi Minh City Stock
Exchange (HOSE) with amount of 33,000,000 shares; Stock code: PGD.
On 16/12/2010, State Securities Commission of Vietnam issued Decision No.
266/2010/QD-SGDHCM on approval of additional shares with 9,862,230 PGD shares
and these amounts of shares were officially listed on 24/12/2010.
On 26/11/2013, PV GAS D Board of Directors made decision of approving policy of
releasing shares to increase charter capital from VND 429 billion to VND 600 billion.
PROCESS OF FORMATION AND DEVELOPMENT
2007
PetroVietnam Low Pressure Gas Distribution Joint Stock Company (PV GAS D)
formerly Vung Tau Low Pressure Gas Trading Enterprise; the establishment alternate
is approved according to Resolution 1109/QD-DKVN dated 12/4/2007 by Board of
Management- PetroVietnam.

On 23/05/2007, PVGAS D was established according to License No. 4103006815 by


Ho Chi Minh City Department of Planning and Investment; Charter capital:
330,000,000,000 Dong contributed by the following Shareholders:
- Vietnam Gas Corporation- One member Company Limited (18% of charter capital).
- Vietnam Gas Corporation- One member Company Limited (18% of charter capital).
- Vietnam Gas Corporation- One member Company Limited (18% of charter capital).
- Ba Ria Vung Tau General Trading JSC (10% of charter capital).
- Cadres, officers, and employees of Vietnam Gas Corporation- One member
Company Limited, Southern Liquidized gas Trading JSC, Northern Liquidized gas
Trading JSC, and Petrovietnam Construction and Erection JSC (40% of charter
capital).
2008

On 19/12/2008, first change in founding shareholders: PV GAS D General Assembly


of Shareholders passed through the Resolution No.02/NQ-DHDCD by separating
part of the shares of Ba Ria Vung Tau General Trading JSC for: Minh Thanh Co., Ltd
(3.29%), Kinh Thanh Trading JSC (2.45%), Phuong Mai Investment JSC (2%).

2009

On 14/10/2009, second change in founding shareholders: PV GAS D General


Assembly of Shareholders passed through the Resolution No.03/NQ-DHDCD by
transferring 1,086,000 shares (3.29%) of the founding shareholder- Minh Thanh Co.,
Ltd to Sacombank Securities One Member Company Limited. After buying the
founding shares, Sacombank Securities One Member Company Limited will become
a founding shareholder of PV GAS D.
2010

On 29/03/2010, the General Assembly of Shareholders passed through the


Resolution No.01/NQ-DHDCD/10 to continue implementing the Resolution
No.03/NQ-DHDCD/09 on issuing shares to increase the charter capital from 330
billion to 429 billion in 2010; the additional issued number of shares is 9.9 million
shares.
From quarter IV, 2010 Vietnam Gas Corporation- the Joint stock Company
implemented the list restructuring through the share transfer agreement from
Southern Liquidized gas Trading JSC, Northern Liquidized gas Trading JSC, match the
order to increase the ownership ratio up to 50.5% of the Charter Capital.
2013
Current Charter capital is VND 429 billion.

ORGANIZATIONAL CHART
MANAGEMENT MODEL
General Assembly of Shareholders has the highest competence in PV GAS D.
Board of Supervisors elected by General Assembly of Shareholders includes
03 members.
PV GAS D Board of Directors includes 05 members.
PV GAS D Management Board includes 01 Director and 02 Deputy Directors

INTRODUCTIO
N
BOARD
OF
DIRECTORS

CHANGES
IN
BOARD
OF
DIRECTORS
Mr. Tran Duc
Son, member of
Board
of
Directors ended
of his tenure
2012-2017 from
26/11/2013.
Mr. Le Quyet
Thang, member
of
Board
of
Directors
has
been appointed
for a term of
2012-2017 from
26/11/2013.

MR. PHAM VAN HUE


President of Board of Directors
Qualification:
Bachelor in Finance and Accounting
Working process:
- From Feb 1981 to Feb 1982:
Specialist of Financial Affairs Office,
Construction board of petroleum
industrial park.
- From Feb 1982 to Mar 1984: joined
the army in border guards of Vung Tau
- Con Dao.
- April 1984 Sept 1986: Specialist of
Material Department, Management
Board of Vung Tau Petroleum.
- Oct 1986 Feb 1988: Deputy Head
of Material Department, Management
Board of Vung Tau Petroleum.
- Mar 1988 Mar 1993: Deputy Head
of Finance & Accounting Department,
Petrovietnam gas.
- April 1993 May 2001: in charge of
Finance & Accounting Department,
Project
Management
Board,
PetroVietnam Gas Corp.
- Jun 2001 Jan 2003: Head of Finance
&
Accounting
Department,
PetroVietnam Gas Corp.
- Jan 2003 Aug 2006: chief
accountant of PetroVietnam Gas Corp.
- Aug 2006 Aug 2007: Head of
business innovation board, Chairman
of Board of Members, PV Gas.
- From Sept 2007 until now: PV GAS D
President of Board of Directors.

MR.
NGUYEN
VAN
SON
Member of Board of
Directors cum Director
Qualification:
Bachelor
of
Foreign
Economic and Trade
Working
process:
- Jan 1996 Mar 1997:
Specialist of Investment
& Planning Department,
PV GAS.
- Mar 1997 Jun 1997:
Specialist
of
Management Board in
South Con Son, PV GAS.
- Jul 1997 Oct 1998:
Specialist
of
Sales
Department, PV GAS.
- Oct 1998 April 2000:
Assistant team leader of
liquid
product
consumption,
Sales
Department, PV GAS.
- April 2000 Jun 2000:
Assistant team leader in
retail, PV GAS.
- Jun 2000 May 2007:
Deputy
Director
of
PetroVietnam Southern
Gas
Joint
Stock
Company.
- May 2007 until now:
Member of Board of
Directors cum Director
of PV GAS D.

MR. LE QUYET THANG


Member of Board of
Directors
Qualification:
Bachelor
in
Business
Administration
Working process:
- Dec 1985 Aug 1989:
Officer of State Bank of
Ky Anh District, Ha Tinh.
- Sept 1989 Sept 2004:
Officer of Vietnam Bank
for Agriculture and Rural
Development, Thach Ha
District, Ha Tinh.
- Sept 2004 Feb 2010:
Director of Thanh Khe
Transaction
Office,
Branch of Vietnam Bank
for Agriculture and Rural
Development in Thach
Ha, Ha Tinh.
- Mar 2010 Sept 2010:
Deputy
Director
of
Coated Pipes Factory,
PetroVietnam
Construction Investment
JSC (PVCI).
- Sept 9/2010 April
2011: Director of Coated
Pipes
Factory,
PetroVietnam
Construction Investment
JSC.
- April 2011 April 2012:
Deputy Director of PVCI
PV GAS.
- April 2012 Nov 2013:
President of Board of
Directors, PVCI - PV GAS.
- Dec 2013 until now:
Member of Board of
Directors, PV GAS D.

MR. CAO KHANH


HUNG
Member of Board of
Directors
Qualification:
Bachelor
in
Accounting
and
Auditing
Working
process:
- Aug 2001 Nov
2001: staff of Finance
&
Accounting
Department, Dai Viet
Trading Co., Ltd.
- Dec 2001 Oct
2002: audit assistant Auditing
and
Informatics
Services
Company Limited.
- Nov 2002 Sept
2007: Specialist of
Finance & Accounting
Department, PV GAS.
- Sept 2007 Feb
2009: Head of Finance
Board, PV GAS.
- Feb 2009 - now:
Finance
Board,
PV
GAS.

MR. NGUYEN NHU SONG


Member of Board of Directors
Qualification:
Telecommunication Engineer
Working process:
- Mar 1987 Jun 1993: Engineer
of
Research
Department,
Vietnam
Telecommunications
Company (VTC) - General Post
Office.
- Jun 1993 Jun 1996: Head of
Research
&
Production
Department,
VTC1,
VITECO
Vietnam
Telecommunications
Technology JSC, Vietnam Posts
and Telecommunications Group
(VNPT).
- Jun 1996 Nov 1999: Deputy
Director
of
VTC1,
VITECO
Vietnam
Telecommunications
Technology JSC.
- Nov 1999 April 2007: Head
of Board of Supervisors, VTC
Telecommunications JSC.
- April 2007 April 2009:
Member
of
Board
of
Supervisors,
Hau
Giang
Pharmaceutical JSC. Member of
Board of Directors, Long An
Food Processing Export JSC.
- April 4/2009 April 2012:
Member of Board of Directors;
Long An Food Processing Export
JSC.
- May 2012 - now: Member of
Board of Directors, Hau Giang
Pharmaceutical JSC; Member of
Board of Directors, Long An
Food Processing Export JSC;
Member of Board of Directors,
Nui Nho Stone Joint Stock
Company; Member of Board of
Directors, PV GAS D.

BOARD OF SUPERVISORS

MR. NGUYEN QUANG


BA
Head
of
Board
of
Supervisors
Qualification:
Bachelor in Accounting &
Auditing
Working process:
- Dec 2007 May 2012:
Specialist
of
Finance
Board, PV GAS.
- May 2012 - now:
Specialist
of
Finance
Board, PV GAS cum Head
of Board of Supervisors.

MRS. DANG THI HONG


YEN
Member
Qualification:
Bachelor in Accounting
and Finance
Bachelor
in
Foreign
Language - English
Working process:
- 1995 - 2006: Specialist of
Business Management in
Capital and State Property
Administration in business
(latter is business finance
department
under
Department of Finance, Ba
Ria Vung Tau)
- 2006 Jun 2007: general
accountant, PV GAS.
- Jul 2007 to now: general
accountant, PV GAS cum
member of Board of
Supervisors PV GAS D.

MRS. NGUYEN THI THU


HA
Member
Qualification:
Bachelor
in
Business
Finance
Master in Economics
Working process:
- 2001 - 2005: Specialist of
Economic Department
Project
Management
Board cluster of gas electricity protein, Ca
Mau.
- Jul 2006 Jul 2008:
Specialist of division of
corporate
finance
consulting,
Dai
Viet
Securities Incorporation.
- Dec 2008 April 2012:
Specialist
of
Project
Department, PV GAS D.
- May 2012 - now:
Specialist
of
Project
Department cum member
of Board of Supervisors PV
GAS D.

IN 2013, ALTHOUGH THERE ARE MANY DIFFICULTIES IN ALL ASPECTS, WITH THE
SPIRIT OF UNITY AND CONSENSUS, PV GAS D BOARD OF DIRECTORS ALWAYS
MAKES A GREAT EFFORT TO FULFILL TASKS ASSIGNED BY GENERAL ASSEMBLY OF
SHAREHOLDERS MEETING. PERFORMING FULLY AND SERIOUSLY REGULATIONS ON
RIGHTS AND RESPONSIBILITIES; DIRECTING, SUPERVISING AND COORDINATING
TOGETHER WITH THE BOARD OF DIRECTORS, DEPARTMENTS, UNITS IN PV GAS D
TO OVERCOME DIFFICULTIES; IMPLEMENTING SUCCESSFUL THE PLAN 2013. IN
ADDITION, BOARD OF DIRECTORS TOGETHER WITH BOARD OF MANAGEMENT PV
GAS D CONSIDERS THE POLICY, PLAN TO CONSTANTLY PUT PV GAS D
MORE AND
MORE SUSTAINABLE DEVELOPMENT.

BOARD OF MANAGEMENT

MR. NGUYEN VAN SON


Member of Board of Directors cum
Director
Qualification:
Bachelor in foreign trade economics
Working process:
- Jan 1996 Mar 1997: Specialist of
Investment & Planning Department, PV
GAS.
- Mar 1997 Jun 1997: Specialist of South
Con Son Management Board, PV GAS.
- Jul 1997 Oct 1998: Specialist of Sales
Department, PV GAS.
- Oct 1998 April 2000: associate team
leader of liquid product consuming team,
Sale Department, PV GAS.
- April 2000 Jun 2000: associate team
leader of retailing team, PV GAS.
- Jun 2000 May 2007: deputy director of
PVGas South
- May 2007 - now: member of Board of
Directors cum Director of PV GAS D.

MR. NGUYEN QUANG HUY


Deputy Director
Qualification:
Bachelor in external economic
Working process:
- Dec 1994 May 2007: Specialist of
commerce

service

market
department
Vietsovpetro
Joint
Venture.
- Jun 2007 - now: Deputy Director of PV
GAS D.

MR. DINH NGOC HUY


Deputy Director
Qualification:
Engineer of Electronic
Master in Business Administration
Working process:
- Aug 1996 Sept 1998: Specialist of
Gas Operation Center, PV GAS.
- Oct 1998 Aug 2001: Deputy Manager
of Dinh Co Gas Processing Factory, PV
GAS.
- Sept 2001 Oct 2002: Deputy Director
of Gas Operation Center in Vung Tau.
- Oct 2002 - 2006: Deputy Director of
Gas Processing Factory PV GAS.
- 2006 Jul 2007: Head of IT Department
PV GAS.
- Jul 2007 now: Deputy Director of PV
GAS D.

MRS. NGUYEN PHUONG THUY


Chief Accountant
Qualification:
Bachelor in accounting
Master in economics
Working process:
- 1985 - 1988: accountant of Finance &
Accounting
Department,
Technology
Products Company.
- 1988 - 1990: accountant of Petrosetco
Vung Tau General Services Co., Ltd.
- 1990 - 1999: chief accountant Goods
and Materials Supply Service Factory,
PetroVietnam
Technical
Services
Corporation.
- 1999 - 2002: Worked at Sales
Department, PVGAS.
- 2002 - 2005: Head of Finance &
Accounting Department cum staff in
charge of administration organization,
PVGAS D under PV GAS.
- 2005 - 2007: chief accountant of PV
GAS D.
- Jul 2007: chief accountant of PV GAS D.

2. GREEN ERA
Report of Management Board
24 Orientation for development
26 Business & production situation
28 Investment & project implementation situation
30 Financial situations
32 Shareholders structure, changing investment capital of owner
34 Report and assessment of Management Board
38 Assessment of Board of Directors

ORIENTATION FOR DEVELOPMENT

TOTAL ASSETS INCREASE BY

24.3 %
DEVELOP PVGASD BY ENSURING THE
SAFETY, EFFICIENCY, AND TO BECOME
THE MAIN FUEL PROVIDER FOR THE
INDUSTRIAL PARKS AND RURAL AREAS.
SATISFYING PART OF THE MARKET
DEMAND, INCREASE THE VALUE OF
EXTRACTED DOMESTIC GASES AND
IMPORTED GASES

Main objectives:
- Develop PVGASD to become the fuel supplier for industrial and civil
customers throughout the country and orient to the international market (if
possible) satisfy the gas demand of the low-pressure gas consumers; and
play the key role in the field of low-pressure gas distribution in the country.
- Develop PVGASD by diversifying the business lines, focusing on low-pressure
gas business through pipelines, simultaneously, concentrate on service
development, financial investment and commercial development.
- Develop PVGASD by ensuring the safety, efficiency, and to become the main
fuel provider for the industrial parks and rural areas. Satisfying part of the
market demand, increase the value of extracted domestic gases and
imported gases.
- Train the cadres and employees to have high qualification and industrial
behavior and discipline.
- Establish and develop the PVGAS D trademark to become a strong and
reliable trademark for domestic and foreign investors
Midterm and long-term development strategy:
Establish PVGAS D trademark and enterprise culture
- Establish and develop the PVGAS D trademark to become a reliable, qualified,
and popular trademark. Develop PVGAS D to become a big fuel provider for
industrial and civil consumers.
- Bring PVGAS D trademark to the investors consciousness. Bring the
enterprise culture and safety culture to the each cadre and employee.
Develop low-pressure gas network
- Study and establish the low-pressure gas network at the industrial parks, gas
consumers associated with the gas pipelines, gas importation system, LNG
and CNG system of PVGAS.
- Develop the low-pressure distribution system in South eastern and South
western Vietnam, and develop towards the Northern and Central Market
according to the development progress of the gas projects of PVGAS and join
in the regional market (if possible).
- Establish the low-pressure gas supply network at the industrial parks which
are far from the pipelines such as Binh Duong, Dong Nai, and HCM City,
initially use the CNG, LPG-Air, LNG- Mobile, when the gas/LNG supply system/
develops to this area, switch to use gas/ LNG.
Invest to increase the capacity of Phu My- Go Dau System

Continue expanding the low-pressure gas consumers inside and around the
region according to the development of gas supply source, and demand of
gas consumers.
Invest in the low-pressure gas distribution system serving the Industrial
Parks in Nhon Trach and Hiep Phuoc basing on the demand and supply
balance
- Continue expanding the gas consumers and the adjacent areas according to
the development of gas supply source, and demand of gas consumers.
Invest to expand the low-pressure gas distribution networks throughout
the country (Southeast region, Southwest region, Central Vietnam, and
Southern Vietnam)
- Plan to invest from 2010 to 2020 and complete the project.
- Carry out the procedures to place the holding points at the low-pressure gas
pipelines in the areas above along with gas projects of PV GAS.
- Work with the Peoples Committee of Provinces on planning to centralize
factories using natural gas in clusters to facilitate the gas supply.
- Conduct the procedures of leasing land for office and gas supply station in
Industrial Parks.
- After 2020: continue expanding low pressure gas customers in or surrounding
areas under the development of gas supply source and the demand of
customers.
In 2017, start selling imported gas
- Develop the system for distributing low pressure gas to the IPs and
residential areas throughout the country matching with the progress of gas/
LNG importation projects, in order to satisfy the gas demand of the
consumers and to contribute to the efficiency of gas/ LNG importation
projects of PVGAS.
Cooperate closely with PVGAS to have long-term gas source and have
roadmap for price increase
Develop low pressure gas network overseas
- Participate in joint ventures, financial, technology, and supply investment
expand the market to other countries such as Laos and Cambodia
Develop other gas products
- Study and participate in establishing the low-pressure gas consumption
systems for IPs, gas consumers connected the head warehouses where
imported LNG, CNG of PVGAS.
Develop service activities
- Establish the specialized service team to serve the production and business
demand of the Company as well as implement the maintenance, repair,
installation, investment supervision, and technology consulting services for
the customers.
- Invest in gas equipment with high safety and accuracy serving the services.
Financial investment and Joint venture
- Make research and contribute capital to efficient low-pressure gas projects.
Technology development and application
- Deploy and apply Maximo software in maintenance management.
- Rapid development of automation, science and technology application,
process supervision, management fields as well as the production and
business activities in order to decrease the material and labor cost, to
increase the productivity, quality, safety, and efficiency of production and
business activities.
-

Study the consumption tendency customers taste to improve the products


and to develop new products.
- Promote initiatives; improve technology in production and business.
- Broaden the training collaboration on technology and engineering with
advanced countries.
- Research and apply advance science and technology to protect the
environment and to bring about efficiency in production and business.
Target for environment, society and community
- Supply the clean fuels to contribute to protect environment according to the
development orientation of sector, policy of State and the general trend of
the world; to ensure the energy development sustainably.
- Putting gas and gas products in widespread and commonly use in production
sectors, business and consumption nationwide contributes greatly to the
process of industrialization and modernization of the country, the protection
of nature, environment, improves the quality and living conditions for entire
of community.
-

BUSINESS & PRODUCTION SITUATION


Profits after tax/charter capital:

48.74%

In 2013, the domestic economy still faced lots of challenges; operating activities of
many enterprises still had to deal with a lot of difficulties, especially in sectors as
real estate, construction material, which directly affecting the business activities of
Company. In addition, the project of low pressure gas supply for Tien Hai Industrial
Park - Thai Binh has the change in the structure of input gas composition from
owner of gas mine so that the Company has to adjust its facility design, calculate
again the total of investment and economic efficiency causing the delay in
implementation of plan. However, with the closely leading of the Board of Directors,
drastic and effective management of the Board of Management, the coordination of
Trade union, youth union and the efforts of the whole officers and staffs, the
Company has successfully completed duties and targets in 2013 approved by the
Annual General Meeting of Shareholders 2013 with details as follows:
Performance of major duties
- Organizing, operating safely and supplying gas continuously, frequently and
stably to 47 customers while signing Sale Contract of Gas with 02 new
customers.
- Completing discussion and signing sale contract of gas 2013 with PV GAS as
well as current customers.
- Signing the Principle Contract with CNG customers in North Vietnam; signing
the business cooperation contract of CNG in North Vietnam with PV GAS
North to develop the low pressure gas consuming market in this area.
Besides, PV GAS D regularly works with PV GAS to ensure the gas source
supplying for customers.
- Coordinating with several potential customers with demand of using low
pressure gas such as Global Vietnam Aluminum Company Limited, Concord
Textile, Southern Steel Sheet Co., Ltd., Viet Long Plastic Packing Company
Limited, etc.
- Updating information of new investment projects in Phu My 2 IP, Cai Mep IP,
Nhon Trach IP, Hiep Phuoc IPto find customers with demand of using gas

No
.

Criteria

Productivity

2
3
4

5
6

Unit

Millio
n
Sm3
Revenue
Billion
Dong
Profit before Billion
tax
Dong
Tax
and Billion
duties
Dong
payable
to
the
state
budget
Profit
after Billion
tax
Dong
Rate of profit %
after tax /
Charter
Capital

Performanc
e 2012

Plan
2013

Performanc
e 2013

617.34

610.02

618.55

%
Performance/
Plan 2013
101.40%

5,487.58

6,422.14

100.63%

304.06

6,381.7
2
172.60

281.27

162.96%

121.34

80.77

113.95

141.08%

228.02

129.45

209.10

161.54%

53.15%

30%

48.74%

161.54%

The implementation of business and production


Main financial targets
The implementation of the plan: In general, PV GAS D has completed the basic
criteria of the plan 2013. This achievement is obtained by the closely and timely
direction of Board of Directors, Board of Management of PV GAS D and the
solidarity, struggles of all staff.
Implementation method to complete plan
Production method
- Operating the gas supply system in right procedure, continuously supply gas
to customers.
- Implementing unexpected repairing activity in time and periodically maintain
in right progress, technical procedure and at the same time implement during
the gas stop supplying time of PetroVietnam Gas Corporation to maximum
gas supplying time to customers.
Business method
- Timely and effectively supporting customers to increase consumed gas
output.
- Strengthening activities of market research, analyzing, assessing the demand
of customers to expand gas distributing market in Industrial Parks in Ba Ria
Vung Tau, Dong Nai, Ho Chi Minh city, Northern Areas.
- Closely cooperating with PetroVietnam Gas Corporation to ensure gas supply
to customers.
Safety method
- Maintaining and improving integrated management system of Safety
Quality Environment according to standard ISO 9001, ISO 14001 & OHSAS
18001.

Improving the security and safety checking activity along the gas pipeline
corridor and deeply propagate to people.
Investment and construction method
- Strictly monitoring, managing and supervising the implementation of basic
construction investment contract, especially speeding up the process of
project: Low pressure gas supply system for Tien Hai IP Thai Binh.
Financial method
- Regularly monitoring, supervising and recovering customer debt; avoiding
bad debts and doubtful debts.
- Ensuring capital arrangement for projects.
Method of training, organizing human resource
- Regularly monitoring, arranging the organizational structure of PV GAS D
under the direction of efficiency, the assignment, decentralization for each
unit of PV GAS D.
- Strengthening the work of training, especially in the work of internal training
and training with instructor at the site of PV GAS D.
-

INVESTMENT & PROJECT IMPLEMENTATION SITUATION


Capacity of CNG station

150

million m3/year

CNG SYSTEM: BY THE INVESTMENT COOPERATION OF PV GAS D AND PV GAS


NORTH UNDER THE BUSINESS COOPERATION CONTRACT. CAPACITY OF CNG
COMPRESSION STATION IS 150 MILLION M3 GAS/YEAR & THE NUMBER OF
CUSTOMERSIS ESTIMATED TO BE 15
Project: Low pressure gas distribution system for Nhon Trach IPs, Dong
Nai Province
Stage 1: Total approved investment is VND 288.7 billion. Currently, it has completed
the investment construction, including: main pipeline 10, 14; Nhon Trach low
pressure gas distribution station; branch pipeline 6,4,3 and customer station
(Hoang Gia, Hyosung, Bach Thanh, ChangYih, Caesar, Kim Phong). There are
operation of commercial gas supply, acceptance and final settlement of investment
capital.
Stage 2: Total investment is VND 117 billion. It has been implemented two works in
Stage 2 including: Low Pressure Gas Distribution System for Formosa and Nha Be
Steel. Currently, PV GAS D has completed installation and supplied gas for
customers. There is conducting to complete the record of settlement and
participating in the procurement of an EPC package: low pressure gas distribution
for Sam Hwan Vina.
Project: Low pressure gas distribution system for Hiep Phuoc Long Hau IPs
Stage 1

The total approved investment of project is VND 44 billion. Currently, it has been
completed and is being acceptance and settlement.
Project: Low pressure gas distribution system for Tien Hai IP Thai Binh
Including:
KTA pipeline system: PV GAS D takes the role as Employer
CNG system: by the investment cooperation of PG GAS D and PV Gas North
according to the business contract. Capacity of CNG Compression Station is 150
million m3 gas/ 1 year and the number of customers (estimated) is 15.
This is the key project to ensure maximum consumption and distribution the gas
output from system of Collecting and distributing gas in Ham Rong Mine and Thai
Binh Mine Lot 102&106 Stage 1 of PV GAS. According to preliminary estimates,
the total approved investment of project is VND 1,089 billion. However, due to the
adjustment of the gas component input from mine owner, from the end of quarter
2/2013 to present, under the direction of PV GAS, PV GAS D is reviewing market,
capable of receiving and consuming gas source Thai Binh to update information,
data served for adjustment of total investment, basic design of project.
Currently, the project has completed the contract with contractor of project
management; completed survey work to determine the exact location of the
customer station for low pressure gas system in industrial park. It also signed
contract of survey, demarcation and cadastral measurements for clearance with
Land Development Center, Tien Hai District; signed the principle contract of CNG
business and distribution in North with PV GAS North.
Project: Head quarter of PV GAS D and PV GAS South in An Phong, Vung
Tau City (GAS Tower)
The total investment of project is VND 86 billion. This is the associate project
between PV GAS D and PV GAS South, in which PV GAS D contributes capital of
50%. The project currently is completed the construction and put into operation
from December 2013.
Project: Low pressure gas distribution system for Phu My 3 IP
Surveying the topography and outlining of the pipeline diagram.

FINANCIAL SITUATION

No
.
1
2
3
4
5
6
7

Criteria

Unit

Total
assets Billion
value
dong
Net revenue
Billion
dong
Profit
from Billion
business
dong
operation
Other profits
Billion
dong
Profit
before Billion
tax
dong
Profit after tax Billion
dong
Dividend
%
Payout Ratio

Implementation
2012
2,049.29

Implementation
2013
2,547.34

% increase,
decrease
124.30

5,487.58

6,422.14

117.03

303.99

281.48

92.60

0.07

-0.21

-300.00

304.06

281.27

92.50

228.02

209.10

91.70

56.44

41.03

Main financial criteria


No Criteria
2012
2013
.
1
Criteria of payment capacity:
+ Short term liquidity ratio
1,60
1,39
liquid assets/ Short term debt
+ Quick liquidity ratio
1,60
1,38
liquid assets Inventory/ short term
debt
2
Criteria of capital structure
+ Debt ratio/total assets:
51.41%
59.80%
+ Debt ratio/ equity
105.80%
105.80%
3
Criteria of operational capacity
+ Inventory Turnover
PV GAS D does business of gas by
pipeline so that it almost has no
inventory
+ Net revenue/ Total assets
2.68
2.52
4
Criteria of profitability
+ Profit after tax/ Net revenue
4.16%
3.26%
+ Profit after tax/ Equity
22.90%
20.42%
+ Profit after tax/ Total assets
11.13%
8.21%
+ Profit ratio from business operation/ 5.54%
4.38%
Net revenue

Total assets value


VND

Net revenue

2,547.34 billion

2012: -------------------------

VND
VND

2,049.29

VND

2,547.34
Profit from business operation

2012:
2013:

281.48 billion

--------------------------

---------------------

2012:

2013:

-------------------------

VND

281.27 billion
-------------------------

VND

----------------------

VND

281.27
Profit from dividend rate

209.10 billion

2012: -------------------------2013: -----------------------209.10

VND

304.06

41.03%
VND

228.02

2013:

VND

281.48
Profit after tax
VND

---------------------

6,422.14
Profit before tax

303.99

2012:

5,487.58

2013: -----------------------------

VND

6,422.14 billion

2012:

-------------------------

56.44%
VND

2013:
41.03%

-------------------

SHAREHOLDERS
OWNER

STRUCTURE,

CHANGING

INVESTMENT

CAPITAL

OF

Joint stock:
According to the audited financial statement dated 31/12/2013, PV GAS D
shareholders have contributed VND 429,000,000,000, equivalent to 42,900,000
shares.
Type of shares in issue: Common share entitled dividends as a result of actual
annual business result.
Number of shares freely transferable: 42,900,000 shares.
The number of restricted shares transfers: 0
Shareholder Structure:
By the time of 12/16/2013, the record date of shareholders to hold the 1 st
Extraordinary General Assembly of Shareholders Meeting
No Shareholder Number
of Number of Value (VND)
Rate (%)
.
shareholders
shares
1
In domestic
1,781
41,425,221
414,252,210,0 96.56%
00
Organization
50
24,028,473
240,284,730,0 56.01%
00
Individual
1,731
17,396,748
173,967,480,0 40.55%
00
2
Abroad
43
1,474,779
14,747,790,00 3.44%
0
Organization
14
1,343,100
13,431,000,00 3.13%
0
Individual
29
131,679
1,316,790,000 0.31%
3
Treasury stock
Total
1,824
42,900,000
429,000,000,0 100.00%
00
List of major shareholders
No Name
Address
.
1
PetroVietnam PV Gas Tower Building, 673 Nguyen Huu
Gas
Tho, Phuoc Kien Commune, Nha Be District,
Corporation
Ho Chi Minh City
The changing situation of the owners investment capital
In 2013, PV GAS D does not implement in increasing capital stock.
Treasury share transaction: None
Other shares: None

Number
of shares
21,664,5
00

Rate
(%)
50.5
0

TOTAL OF SHARES:

42,900,000
The percentage of domestic and foreign shareholders:

96
.56%

are domestic
shareholders.

Foreign:

3.44%

Domestic:

96.56%

NUMBER OF SHARES HELD BY PETROVIETNAM GAS CORPORATION

21,664,500

REPORT AND ASSESSMENT OF BOARD OF MANAGEMENT

ASSESSMENT ON PRODUCTION AND BUSINESS RESULTS:


Basic criteria:
In 2013, under strict supervision of Board of Directors and Board of Management,
as well as determination, solidarity, and efforts of PVGAS Ds staffs and employees,
the company completed and exceeded the planned criteria in 2013 especially the
budget remittance is completed 3 - 4 months before due. In details:
Profit before tax: 281.27 billion Dong
Profit after tax: 209.10 billion Dong
Profit after tax /charter capital ratio: 48.74%
Results:
Safety, health, and environmental protection work:
PV GAS D complies with regulations of PVGAS, PVN, and State on safety, health,
and environmental protection work; often organize and inspect the safety at the
gas stations and pipeline safety corridor, as well as coordinates with the police and
local authority to ensure the gas premise security. Establish fire prevention and
fighting plan, emergency response, and often propagate the adjacent households
about regulations on fire prevention and fighting. Propagate and train the
customers about fire prevention and fighting, especially for new customers.
Organize fire prevention and fighting rehearsals, workshop about safety operation
and repair work. So far, the security work has been guaranteed. No accident has
occurred which affects the people, properties, and reputation of PVGAS D.

Profit after tax:

209.10 billion Dong

About production and business:


Organize safe operation; provide gas regularly and continuously for 47
customers and two new gas sale contracts are responding.
In 2013, PVGAS D speeds up the market development; PVGAS D works with
management boards of the industrial zones in Vung Tau, Dong Nai, and HCM
city to seek for customers who need low pressure gas. In addition, PVGAS
D also enters into CNG cooperation contracts in the North with PVGAS North
in order to develop the low pressure gas market in this region. Besides,
PVGAS D usually works with PVGAS in order to ensure the gas supply source
for the customers.
PVGAS D is also implementing the Gas Prices route proposed by PVGAS as
well as negotiating with the customers on the basis of increasing the gas
price according to the international prices but still more competitive than the
fuel used by the customers.
The scheduled and nonscheduled maintenance and repair, equipment inspection
and improvement; labor protection:
In 2013 PVGAS D implemented the scheduled maintenance and repair for 1,252
items achieving 101% of the plan and nonscheduled maintenance and repair for
618 items, completed the accuracy tests (ATs) for the gas metering system in Nhon
Trach- Hiep Phuoc and Phu My- My Xuan- Go Dau Area; improved and replaced the
optical cable line in concrete channel in Go Dau- My Xuan Area; inspected and
calibrated low pressure gas metering equipment; completed the pipeline 14 Phu
My- Go Dau and completed 100% of the labor protection plan.
Basic investment and construction:
The basic investment and construction work is deployed in accordance with the
plan and progress.
Technology and scientific training:
Training: PVGAS D always pays special attention to the training work,
especially the internal training and field training in order to reduce the
training expenses. In 2013, PVGAS D organized 41 training courses with 538
trainees; total expense is 1.7 billion VND.
Science and technology: PVGAS D updated, repaired, and put the
management software BDSC Maximo into use; implemented 12 ideas of
improving technology and production optimization which helped minimize fire
and explosion risks and damages to the equipment, reduce downtime, reduce
the expenses, and prevent economic loss as well as accidents in the future.
Human resource organization
PVGAS D often supervises and arranges compact and efficient organizational
structure; arranges and uses the labors reasonably, assigns and divides
responsibilities to each unit in PVGAS D; implements all policies of the State,
PVGAS, and PVGAS D for the labors.

The organizational structure is getting better and more efficient.


The human resource satisfies the development objective of each period.

ASSESSMENT OF BOARD OF DIRECTORS (Continued)


FINANCIAL SITUATION
Assets
Total asset value of PVGAS D as at 31/12/2013 has increased by 498.04 billion Dong
(24%) compared with 31/12/2012, the reasons are as follows:
Short term receivables increased: receivables from customers increased by 112.32
billion Dong because the monthly gas sales increased (the sales in 2013 is 1.4%
higher than that in 2012). The receivables were due and under control of PVGAS D.
In 2013, PVGAS D did not have bad debt.
02 projects of PVGAS D (in Nhon Trach and Hiep Phuoc) were completed and put
into operation (initial cost of fixed assets increased from 335.07 billion Dong to
419.61 billion Dong)
Liabilities
Payables: Payables to sellers as at 31/12/2013 increased by about 478.08 billion
Dong compared to that on 31/12/2012 because the gas sales in 2013 was higher
than that in 2012 (02 projects of PVGAS D in Nhon Trach and Hiep Phuoc were
completed and put into operation. These liabilities included the gas purchase
amount payable to the suppliers which was not due. According to assessment of
PVGAS D, the current assets of PVGAS D are sufficient to support the short term
liabilities. The liquidity criteria of PVGAS D as at 31/12/2013 are quite good.

ON THE BASIS OF OPERATION RESULTS IN


2013, OPERATION CAPACITY AND INPUT GAS
SOURCE OF PVGAS D, AS WELL AS THE DEMAND
OF REGITERED CUSTOMERS; THE DEVELOPMENT
PLAN OF PVGAS D IN THE FUTURE IS AS
FOLLOWS:
DEVELOPMENT PLAN IN THE FUTURE
Basic
No.
1
2

criteria in 2014:
Criteria
Unit
Plan in 2014
Charter capital
Billion dong
600
Outputs
620
Sales to industrial zones
Million m3
481
Sales of CNG
139
3
Revenue
Billion dong
7,024
4
Profits before tax
Billion dong
189
5
Profits after tax
Billion dong
147
6
Profits before tax/charter capital ratio
%
32
7
Profits after tax/charter capital ratio
%
25
Basic investment and construction plan 2014
a) Low pressure gas distribution project for industrial zones in Nhon Trach District
(Period 2)
Complete the construction for 03 new customers with investment amount of about
30 billion Dong
b) Low pressure gas distribution project for industrial zones in Tien Hai District- Thai
Binh
Complete the adjustment of total investment amount and basic design. Deploy
packages of the project such as: Mine detecting and removal, design, procurement
of equipment, and construction. The total investment value is 108.9 billion Dong,
43.6% of which is for Low pressure gas pipeline and 65.4% is for the CNG system.
c) Low pressure gas distribution project for Phu My 3 Industrial Zone
Complete the establishment of investment project
Total planned revenue in 2014

:7,024 billion VND

BOARD OF DIRECTORS ASSESSMENT ON OPERATION ASPECTS OF PVGAS D


Production and business
In the recent year, due to the impact of domestic and
international
economic
conditions,
PVGAS
D
encountered some objective and subjective difficulties
in its operation including:
The economic difficulties make many challenges.
The operation of enterprises encountered many
difficulties especially for real estate sector,
construction material, and affected the operation
of PVGAS D.
The input gas prices increase
However, Board of management and employees of PVGAS D are always decisive in
management, worked hard, promoted ideas, improved the technology, and
optimized the production in order to minimize bad impacts and promote the
strengths of PVGAS D and to complete the plan 2013 passed through by General
Assembly of Shareholders, especially for the profits and budget remittance criteria
3-4 months before due. Remaining the position as the efficient business unit under
PVGAS and PVN, named in the list VNR500-Top 500 biggest enterprises in Vietnam
in term of revenue. PVGAS D also maintains the attractiveness of PGD stock in
order to attract the investors on the stock market of Vietnam.
Labor, salary, and policies
The Company often supervises and arranges the organization structure to be
compact and efficient; arranges and uses the labors reasonably; assigns and
divides responsibilities to each unit in PVGAS D. PVGAS D implements the labor and
salary work in accordance with the plan. PVGAS D implements all policies of the
State, PVGAS, and PVGAS D for the labors.

Activities and social affairs

Communist party activities: The Party Committee


usually transfers the resolutions and decisions of the
Party Committee to each member as well as
establishes and directs the implementation of action
plans of the Corporation and PVGAS.

Trade union activities: PVGAS D Trade Union


coordinated closely with the authority in training and
educating the cultural and spiritual life for the labors,
launching the creative working movement. In addition, the Trade Union of PVGAS
D also coordinated with local social organizations to organize the social affair
activities.

Youth union activities: PVGAS Ds Youth


Union renovated the contents and method
of Youth union activities, launched contest
movements, promoted the members to
continue improving their qualification,
ideas, and experience in order to save the
cost and improves productivity.
Social affair activities: Actively participated in the
charity and social affair activities

BOARD OF DIRECTORS ASSESSMENT ON THE OPERATION OF BOARD OF


MANAGEMENT
Board of Management has successfully implemented and
deployed the resolutions and decisions of the General
Assembly of Shareholders, of the Board of Directors. Board of
Management often organizes meetings with departments and
units to address and resolve the difficulties and problems.
Board of Management handles the problems timely and
proposes good solutions.
PLAN AND ORIENTATION OF THE BOARD OF DIRECTORS
To become a leading company in field of gas supply for industrial customers in the
country, to develop in a safe and efficient way, and to become the main fuel
provider for industrial zones, PVGAS D invested to broaden the gas network in Phu
My- My Xuan- Go Dau. The Company is investing in the gas distribution system for
Nhon Trach and Hiep Phuoc Industrial Zones, deploying the gas distribution pipeline
as well as CNG system in industrial zones in the North.
In addition, to develop a broad gas distribution network in the country, and to
develop the market nationwide and internationally, PVGAS D plant to participate in
supplying the imported gas/ CNG for industrial customers with low pressure gas
distribution network through gas importation projects of PVGAS from 2017. Develop
PVGAS D brand to become a strong and reputable brand in national wide and
internationally.

Building
DURABLE FOUNDATION
Enterprise management

44 Board of general directors


50 Board of Supervisors
52 Number of officers and staffs,
and policies for labors
54 Risks
56 Implementation of policies on
Safety Quality HealthEnvironment
58 Community activities
59 Achievements and Rewards

BOARD OF DIRECTORS

WITH THEIR AUTHORITY AND RESPONSIBILITY, IN 2013, BOARD OF GENERAL


DIRECTORS TRIED TO DO WELL IN CONSIDERATION AND DECISION OF ISSUES ON
PV GAS D DEVELOPMENT PLAN AND OTHER ISSUES IN ACCORDANCE WITH THE
LAW AND CHARTER OF PV GAS D, WHICH ENSURE TO BE SUITABLE FOR ACTUAL
STATUS AND ALSO ENSURES RIGHTS AND BENEFITS OF THE LABORS AND OF PV
GAS DS SHAREHOLDERS

CHARTER CAPITAL OF

600 BILLION VND

Members and organization structure of Board of Directors:


Board of Directors of PV GAS D in 2013 includes 05 members. Detail as follow:
N
o

FULL NAME

Pham Van Hue

POSITION

HOLDING
SHARE
NUMBER

Number
of
positions held by
members of BOD
in other company
0

Chairman of BOD- 668


specialized
responsibility
2 Nguyen Van Son
Members of BOD 44.724
0
cum Director
3 Le Quyet Thang
Specialized
0
0
member
4 Cao Khanh Hung
Cum member
0
0
5 Nguyen Nhu Song
Independent
40.100
3
member
Subcommittee of BOD: are not established
Activities of BOD:
In 2013, on the basis of business and production plan ratified by GMOS, BOD
often followed up actual status of PV GAS D to formulate policies, resolutions,
decisions in order to supervise in time and create favorable conditions for BOM
of PV GAS D to finish their task.
Also, in other fields of PV GAS D, through Regularly Monitor the executive work
of BOM, BOD has done well supervision, monitoring and supporting BOM in the
implementation of the GMOS and BOG.
With their authority and responsibility, in 2013, board of general directors tried
to do well in consideration and decision of issues on PV GAS D development
plan and other issues in accordance with the law and PV GAS Ds statute; which
ensure to be suitable with actual status and also ensure rights and benefits of
labors of PV GAS Ds shareholders.
Results in the year are, BOD held meeting 21 times (in the form of focused
meeting and consultation in writing) to consider, treating and decide some main
problems, specifically as follows:
- BOD considered and ratified the Regulations of PV GAS D, assignment of HR,
HR planning of PV GAS D:

BOARD OF GENERAL DIRECTORS (continued)

+Pass through the process of publicizing information of PV GAS D (RESOLUTION


No. 06/NQ-HQT/2013).
+ Appoint Mr. Nguyen Nhu Song independent member of BOD to undertake
salary and bonus issues, HR issues of PV GAS D (RESOLUTION No. 08/NQHQT/2013)
+ Pass through the officer re-appointment of Mr. Dinh Ngoc Huy Technical
deputy director, Mr. Nguyen Quang Huy sales deputy director, and Mrs.
Nguyen Phuong Thuy Chief Accountant (RESOLUTION No. 11/NQ-HQT/2013)
+ Approve the monitoring and investment assessing process of PV GAS D
(RESOLUTION No. 13/NQ-HQT/2013)
+ Pass through the resignation of Mr. Tran Duc Son from Member of BOD
(RESOLUTION No. 15/NQ-HQT/2013)
+ Pass through the appointment of Mr. Le Quyet Thang to replace Mr. Tran Duc
Son to be Member of BOD (RESOLUTION No. 15/NQ-HQT/2013)
+ Pass through the appointment of Mr. Bui Kim Hanh Deputy Manager of
General-planning department to be Manager of General-planning department
(RESOLUTION No. 16/NQ-HQT/2013).
+ Approve the financial management regulation of PV GAS D (RESOLUTION No.
18/NQ-HQT/2013).
+ Approved the monitoring and investment assessing process of PV GAS D 1 st
half amendment (RESOLUTION No. 19/NQ-HQT/2013).
-BOD considered some policies of investment and development of PV GAS as
follow:
+BOD assigned to Directors to implement the negotiation of Contract of CNG
gas business cooperation principle on in the Northern region with PetroVietnam
Northern Gas Joint Stock Company (RESOLUTION No. 10/NQ-HQT/2013).

IN 2013, ALTHOUGH THERE ARE MANY DIFFICULTIES IN ALL ASPECTS, WITH


HIGH UNITY SPIRIT, BOD OF PV GAS D ALWAYS MAKE A GREAT EFFORT TO
COMPLETE WELL TASKS ASSIGNED BY GMOS, IMPLEMENT FULLY AND STRICTLY
THE PROVISIONS ON THEIR AUTHORITIES AND RESPONSIBILITIES; GUIDE,
SUPERVISE, COODINATE WITH MANAGEMENT BOARD, DEPARTMENTS AND UNITS
OF PV GAS TO OVERCOME DIFFICULTIES, IMPLEMENT THE PROPOSED VICTORY
PLAN IN 2013.
+ Pass through the signing of the Contract of CNG gas business cooperation
principle on in the Northern region with PetroVietnam Northern Gas Joint Stock
Company (RESOLUTION No. 11/NQ-HQT/2013).
+ Approve the policies of selling villa debt cleared from PVFI to recover capital.
(RESOLUTION No. 16/NQ-HDQT/2013).
- BOD considered and ratified contents relating to plan, dividend, salary and
some other contents:
+ Approve the business and production operation plan in 2013 of PV GAS D
(RESOLUTION No. 01/NQ-HQT/2013).
+ Approve the financial plan criteria in 2013 of PV GAS D (RESOLUTION No.
02/NQ-HQT/2013).
+ Pass through annual statement in 2012 (RESOLUTION No. 03/NQ-HQT/2013).
+ Pass through policies of promoting image of PV GAS D (RESOLUTION No.
04/NQ-HQT/2013).
+ Pass through the content of wage-fund temporary deduction in 2013
(RESOLUTION No. 05/NQ-HQT/2013).
+ Pass through content of changing capital use purpose from the issuance of
charter capital increasing shares (RESOLUTION No. 07/NQ-HQT/2013).
+ Pass through content of reward expense for individuals in BOD and PV GAS D
Executive board in 2012 (RESOLUTION No. 09/NQ-HQT/2013).
+ Pass through report of business and production status of the first 6 months of
the year and task orientation of the second half year (RESOLUTION No. 11/NQHQT/2013).
+ Approve the amendment of construction investment plan in 2013 of PV GAS D
(RESOLUTION No. 12/NQ-HQT/2013).

Board of General Directors (cont)


Profits before tax reach 281.27 billion

+ Pass through the guideline of asking for suggestions of Board of Directors in


writing in terms of adjusting investment and construction plan in 2013 of PV
GAS D (NQ: 12/NQ-BOD/2013).
+ Pass through the report on situation of production-business operation and
task-orientation for the fourth quarter of 2013 (NQ: 14/NQ-BOD/2013).
+ Pass through content adjustment of decision number 175/QT-KTA in terms
of approving investment and construction project System of low-pressure gas
distribution for industrial zones in Nhon Trach district, Dong Nai province
(NQ: 14/NQ-BOD/2013).
+ Pass through the guideline of advancing 2nd dividend.
(NQ: 14/NQ-BOD/2013).
+ Pass through the guideline of increasing charter capital of PV GAS D (NQ:
14/NQ-BOD/2013).
+ Pass through the guideline of capital issue to increase working capital of PV
GAS D from 429 billion to 600 billion and call an extraordinary GMOS to adopt.
+ Pass through the additional content on salary scale for title of BODs
members of PV GAS D (NQ: 16/NQ-BOD/2013).
+ Approve Director of PV GAS D to deploy to negotiate and sign a contract
with Life Insurance Limited Company to buy insurance for staff of PV GAS D
(NQ: 17/NQ-BOD/2013).
+ Approve salary norm in 2013 (NQ: 20/NQ-BOD/2013).
+ Pass through the 1st extraordinary GMOS (NQ: 21/NQ-BOD/2013).
In brief, despite facing many difficulties in all aspects, with high solidarity and
consensus spirit, BOD of PV GAS D make efforts to complete all tasks assigned
by GMOS, comply with regulations about their power and responsibility, guide,
supervise and collaborate with BOM, unit departments in PV GAS D to solve
problems, achieve scheduled targets of 2013. BOD and BOM consider to give
guidelines, plans to keep sustainable and continuous development for PV GAS
D.
Operation of non-management BODs members:
Independent Members of BOD completely participate in meetings and
activities of BOD. Members join in considering, researching, and contributing

suggestions about issues lying in the BODs competence so that BOD enforce
related resolutions and decisions.

Activities of subcommittee in BOD: dont set up subcommittee.


List of BODs members having certificate of training management of PV GAS
D:
Pham Van Hue, Nguyen Van Son, Le Quyet Thang, and Nguyen Nhu Song

Board of Supervisors (BOS)

Members and structure of BOS


No.
Name
1
2
3

Nguyen Quang Ba
Dang Thi Hong Yen
Nguyen Thi Thu Ha

Position
Head of BOS
member
member

No. of shares
owned
0
0
0

Activities of BOS:
In 2013, BOS deployed implementation of tasks as follow:
+ monitor the compliance with regulations of organization, activities of PV
GAS D and comply with current legal regulations. Check and monitor the
situation of fulfilling production-business plan. Monitor the enforcement of
resolutions of GMOS
+Cooperate with BOD, BOM to check, monitor the production-business
activities of the whole PV GAS D. Monitor management, use of capital,
assets, human resources and other resources of PV GAS D to ensure
effective use, prevent loss, waste, in compliance with regulations of PV
GAS D and law of the Government.
+Appraise financial statements quarterly and annually, ensure the
correctness and transparency of the statements. Analyze and assess
financial situation, ability of preserving and developing capital of PV GAS
D.
+ Checking and assessing work of BOS is implemented continuously and
systematically to catch up with real situation and effectiveness of
operation of PV GAS D, help to discover and repair shortcomings in the
management and operation system and internal control system. Quarterly,
BOS plan to check, monitor and assign tasks for each member at each
field. Check, monitor as scheduled and make checking and monitoring

report.

TRANSACTIONS, REMUNERATION, OTHER BENEFITS OF BOD, BOM AND


BOS
Salary, Bonus, and benefits:
No
.

Name

Pham
Hue
Tran
Son

Position

Implemented in 2013

Note

Total
Van Presiden
t of BOD
Duc Member
of BOD

Le
Quyet Member
Thang
of BOD

Cao Khanh
Hung
Nguyen
Nhu Song
Nguyen
Quang Ba
Dang
Thi
Hong Yen
Nguyen Thi
Thu Ha
Nguyen
Van Son

Salary and Remuneratio


bonus from n
wage-fund
Specialized
832,840,90 832,840,90
responsibility
9
9
Expired term of
33,000,000
33,000,000
43,095,000

43,095,000

office
since
26/11/2013
Specialized
responsibility.
Be
appointed
according
to
Resolution No.
15/NQHQT/2013 on
26/11/2013
Multitasking

Member 36,000,000
36,000,000
of BOD
Independent
5
Member 36,000,000
36,000,000
of BOD
Multitasking
6
Head of 24,000,000
24,000,000
BOS
Multitasking
7
Member 18,000,000
18,000,000
of BOS
Multitasking
8
Member 105,954,54 105,954,54
of BOS
6
6
Be
entitled
9
Member 798,849,54 798,849,54
benefits
on
of BOD 5
5
bonus
regime
cum
on Tet holiday,
director
13th
monthly
salary, reward,
10 Dinh Ngoc Deputy
638,909,72 638,909,72
as officers
Huy
director
7
7
and staffs in PV
11 Nguyen
Deputy
638,909,72 638,909,72
GAS D
Quang Huy director
7
7
Specialized- responsible or multitasking title getting salary in PV GAS D doesnt get
remuneration. In addition, reward fund is deducted to reward executive board
every year.
Stock transactions of internal shareholders: ( information about Stock transactions
of members of BOD, BOS, BOM, Chief Accountant, secretary, major shareholder
and those relating to above candidates): none.
Contract or transaction is implemented with internal shareholders: (Information
about signed or implemented contract or transaction with the Company, subsidiary

company which the Company takes control of members of BOD , BOS, Directors
and those relating to above candidates): none.
The implementation of the Companys management provisions: good.
NUMBERS OF OFFICERS AND LABOR POLICY

Proportion of HR
qualification

56,14%

Of numbers of labors
having
university
degrees in 2013
Technical staff
Intermediate
College
University
Masters

1
2
3
4
5
6

NO. Level
Masters
University
College
Vocational school
Technical worker
unskilled worker
Total

No. of people
08
96
04
11
52
0
171

Rate (%)
4,68
56,14
2,34
6,43
30,41
0
100

HUMAN RESOURCES

171

PEOPLE

IN GENERAL, PV GAS D IS CURRENTLY USING LABORS WITH QUITE HIGH


QUALIFICATION; MORE THAN 60% OF LABORS HAVE UNIVERSITY DEGREES AND
POSTGRADUATED DEGREES, 30% OF LABORS HAVE TECHNICAL WORKER
QUALIFICATION, THE REMAINING PART ARE COLLEGE AND VOCATIONAL SCHOOL
AND THERE IS NO UNSKILLED LABORS. SPECIFICALLY, QUALIFICATION OF PV GAS IS
REFLECTED AS FOLLOWS:
Policies for labors
-Ensure to implement the signing of the labor contract, paying for social insurance
medical insurance, unemployment insurance and benefit of labors in accordance
with the Law. Beside, PV GAS D also buys human insurance, life insurance for
officers and staffs.
-Strictly comply with salary and bonus regime on holidays and 13 th monthly salary
for labors.
-Build officer management regulation, promotion policies, flexible HR appointment,
create motivation for officers and staffs to promote their capacity.
- Build salary and bonus regime, system of position standard and policies for staffs
associated with performance, quality and effect of work of labors, ensuring to
Compete with other companies to encourage labors to promote activeness,
creativeness in work.
-Pay attention to combine training with using, encouraging staffs to take part in
training programs suitable with work.
-Building enterprise culture in all officers and staffs.
- Create safe and modern working environment; encourage and create conditions
for officers and staffs to learn, improve qualification to work for PV GAS D
permanently.

RISKS

GAS IS AN EXPLOSIVE PRODUCT, THEREFORE IT POTENTIALLY CAUSES


DAMAGES ON PROPERTY, HUMANS, ENVIRONMENT AND INTERRUPTS
PRODUCTION-BUSINESS ACTIVITES
Risks in economy:
Many factors affect to the economy including economic growth, market,
interest, inflation, exchange rate, etc.
If these factors strongly fluctuate, the national economy will be influenced.
Therefore, result in the production-business activities of PV GAS D.

In addition, PV GAS D is affected and fluctuated by petroleum and gas


exploitation in domestic and international market that have strong impacts to
the gas resources and its input price of PV GAS D.
Risks in operating:
Gas is an explosive product; therefore it potentially causes damages on
property, humans, and environment and interrupts production-business
activities.
Risks in interest rate:
PVGAS D is subject to the interest rate risk when the company borrows
investment capital according to fixed and floating interest rate.
Risks in project investment:
The investment of receiving station to new customers, investment of supplying
gas project to customers in Nhon Trach and Hiep Phuong Industrial Zones, plan
of using gas in the southwest area and the North Industrial Zones, etc, create
the PV Gas D s growth. However, this investment has potential risks that are
derived from business characteristics of gas sector, affects to the projects
efficiency.
Risks in Laws:
The national laws system is not completed in content and in practice.
Moreover, there are many overlapped and complex regulations that exist in
administrative sector.
Besides that, as a result of participating in WTO, it is very necessary to have a
more complete legal system that complies with standards of international
economy in the integration process. It means that risks of legal changes appear.
In addition, the new auditing and accounting standards are built and completed.
These changes affect to the production-business activities of PV GAS S in
particular and of other companies in general, as well.
Other risks:
Other unpredictable risks rarely occurs, however, if any, it strongly affects to PV
GAS Ds business, including earthquakes, fire, drought, flood, war or epidemic
diseases, etc.

IMPLEMENTATION OF QUALITY HEALTH SAFETY ENVIRONMENT


(QHSE) POLICY
S-Q-E management system:
PV GAS D builds management system integrated by 3 factors Safety Quality
Environment in accordance with Plan Do Check Act model that is based on
measurement principles and continuous improvements in order to create
products and services meeting the requirements of quality, safety for
employees, customers, stakeholders and the PV GAS D assets. From leaders to
staff of PV GAS D, they all understand and fulfill their missions on management
of Safety-Quality-Environment, which were licensed ISO 14001:2008, OHSAS
18001:2007, and ISO 14001:2004 by TUV Rheinland of Vietnam. S-Q-E
management system has been applied in production-business activities of PV

GAS D and improved annually according to the requirement of assessment unit


as well as output of annual meeting of leaders to make the system leaner, more
suitable with practical situation and enhance its efficiency.
S-Q-E management policy:
S-Q-E policy prevents damages to human, asset and environment from
activities of distribution, gas business and gas products. In order to implement
this policy well, PV GAS D has an annual cooperation with Center of Counseling,
transferring safety and labor hygiene technology and protecting the South
environment to hold training course so as to provide additional knowledge
about Safety-labor hygiene and fire prevention and fighting in accordance with
law documents, train first aid, fire prevention and fighting for all participants.
Besides, PV GAS D usually organizes activities such as: competition on Safetylabor hygiene and fire prevention and fighting among staff, Conference on
Safety with the participation of representatives of PV GAS, customers, friends
unit, etc to raise awareness on the importance of this work for productionbusiness activities of PV GAS D.
Care for health of workers:
Health examination: perform periodically once per year for 100% of staff,
especially examine occupational disease twice/a year for staff accessing
directly to gas work in accordance with legal regulations. Appoint staff to join
training course on health and set a medicine cupboard in the office, plant to
support health problems for staff on time.
Buy health insurance and human insurance with high responsibility for 100% of
staff, help employee get cost support and high-quality health care service.
Regularly hold short-date resort vocations, picnics and tours to help staff refresh
themselves.
Environmental works:
Comply with legal regulations on production-business activities.
Use modern technique machines
Launch green and clean movement and ensure safety and labor hygiene. All
the staffs of PV GAS D keep activities of environment preservation and
protection such as planting trees, cleaning, cutting grass in the area of gas
station and on the pipeline corridor according to the annual plan to prevent
fire as well as creating a friendly environment at work of PV GAS D. Besides,
PV GAS D kicks off a saving movement such as saving papers, electricity,
water and use materials, which are friendly with environment and energy
saving.

COMMUNITY ACTIVITIES
TOTAL AMOUNT OF SOCIAL SECURITES WORKS IS

2,5 BILLION DONG

In the past year, the charity and social security activities are still regularly
remained; although they are not so big in value, it is important for the
companys staff to have spirit of community and solidarity through their
activities. In 2013, PV GAS D actively took part in some activities including:
work overtime to support Petroleum mutual funds and other movements; raise a
subscription to the victims of floods in central; support PVPipe Companys Staffs
who are killed in an accident in Can Gio; give gifts for poor children in Xuyen
Moc and poor households along the pipeline route of Phuoc An Nhon Trach
communes; support families of autistic children in Vung Tau City; participate in
program Lighting Dreams etc. The total amount for implementing social
security works in 2013 is about 2,5 billion dong.

TITLES AND AWARDS IN 2013


It is in VNR 500 that means TOP 500 OF THE BIGGEST ENTERPRISES IN VIETNAM
ON THEIR INCOME UNDER FORTUNE 500 S MODEL annual periodical published
by Vietnamnet.vn e-journal.
It is received diplomatic of Petrovietnam Gas Joint Stock Corporation for their
excellent labor group annuity, and merit list of PetroVietnam Gas JSC.

CREATING
ACHIEVEMENTS
Audited financial statements
6 Report of Director General Board
2 Independent audit report
6 Balance sheet
4 Income statement
6 Cash flow statement
5 Notes to Financial Statements
6
7
6
8
6
9

BOARD OF MANAGEMENTS STATEMENT


Board of Management of PV GAS D (referred as Company) submits this
statement attached the Companys Financial Statement of financial year
ended on December 31, 2013
BOARD OF DIRECTORS
Members of Board of Directors and Board of Management that executives
the companys production-business activities in the year to the date of
making this statement, including:
Board of Management
Mr. Pham Van Hue
Chairman
Mr. Nguyen Van Son
Member
Mr. Tran Duc Son
Member (resigned on October 26, 2013)
Mr. Cao Khanh Hung
Member
Mr. Nguyen Nhu Song
Member
Mr. Le Quyet Thang
Member(appointed on October 26, 2013)
Board of Directors
Mr. Nguyen Van Son
Director
Mr. Nguyen Quang Huy Deputy Director
Mr. Dinh Ngoc Huy
Deputy Director
RESPONSIBILITIES OF BOARD OF DIRECTORS
Board of Management is responsible for making annual Financial Statement,
truly and reasonably reflects the companys financial, income, and cash flow
situations, that complied with accounting standards, regimes of Vietnam and
legal regulations related to make and show financial statement.
In making this statement, Board of Management shall be required:
Select reasonable accounting policies and apply those policies in
consistency;
Give careful and reasonable estimates and evaluations;
Clarify reasonable accounting principles that are complied with or not,
are applied some serious material misstatements that need notifying
and explaining in financial or not;
Making financial statement basing on continuous operation, unless
Company is considered not to run their business; and
Design and implement internal control system in effective way that
aims to make and show reasonable financial statement in order to limit
risks and frauds.
Board of Directors takes charge of ensuring that the Ledger is recorded in
suitable way in order to truly reflect the companys financial situation in any
time and ensure that it complied with accounting standards, regimes of
Vietnam and legal regulations related to make and show financial statement.
Board of Directors also takes charge of assuring the companys assets and
implementing suitable methods to prevent and discover other frauds and
mistakes.
Board of Directors confirms that Company had subjected to above
requirements in making financial statement.
Representative and On Behalf of Board of Directors
Director
(signed and sealed)
Nguyen Van Son
February 11, 2014

Ho Chi Minh City, Socialist Repbulic of Vietnam

INDEPENDENT AUDITORS REPORT


DELOITTE
No. 520/VN1A-HN-BC

To:

Deloitte Vietnam Company Limited


12a Floor, Vinaconex Building, 34 Lang
Ha Street, Dong Da District, Hanoi,
Vietnam
T: +844 6288 3568
Fax: +844 6288 5678
www.deloitte.com/vn

The Shareholders
Board of Directors and Board of Management
Petro Vietnam Low Pressure Gas Joint Stock Company

We have audited the enclosed financial statement of the Petro Vietnam Low
Pressure Gas Joint Stock Company ("the Company"), established on February
11th, 2014 from page 67 to page 91, including balance sheet on December
31st, 2013, business operation result report, report of cash flows for the
financial year ending at the same day and the financial statement notes
(collectively called the "financial statements").
Responsibilities of the Board of Management
Company's Board of management is responsible for the preparation and true
and proper presentation of the financial statement of the Company in
accordance with accounting standards, Vietnam corporate accounting
regime and legal provisions related to the preparation and presentation of
financial statement and is responsible for internal control that Board of
management finds it necessary to ensure the preparation and presentation
of financial statement without serious misstatements due to fraud or
confusion.
Auditor's Responsibilities
Our responsibility is to express my opinion on the financial statements
based on our audit. We conducted our audit in accordance with auditing
standards Vietnam. Those standards ask us to comply with the regulations
and standards of professional ethics, planning and implementation of the
audit to obtain reasonable assurance about whether the financial statement
of the Company has any misstatement or not.
The audit includes implementation of procedures to gather audit evidences
about the data and notes in the financial statement.The audit procedures are
selected based on the auditor's judgment, including risk assessment with
serious misstatement in the financial statement due to fraud or confusion.
When performing the risk assessment, the auditor has to consider internal
control of the Company's related to true and proper preparation and
presentation of the financial statement in order to design audit procedures
that are appropriate with the actual situation, but not for the purpose of
giving any opinion on the effectiveness of internal control of the Company.
The audit also includes evaluation of suitability of accounting policies applied
and rationality of accounting estimates of Board of management, as well as
evaluation of the overall presentation of the financial statement. We believe
that the audit evidences we obtain are sufficient and appropriate basis for
our audit opinion.
Auditor's Opinion

According to our opinion, the financial statement truly and properly reflects
all serious aspects, the financial status of the Company on December 31st,
2013, and the results of business operation and cash flows for the financial
year ending in the same day in accordance with accounting standards,
corporate accounting regime of Vietnam and the legal provisions related to
the preparation and presentation of financial statement.
Pham Hoai Nam
Vice General Director
Registration certificate of auditing
practice No.
0042-2013-001-1
On behalf of Deloitte Vietnam
Company Limited
February 11th, 2014
Hanoi, Socialist Republic of Vietnam
(Signed and sealed)

Hoang Van Kien


Auditor
Registration certificate of
auditing practice
1130-2013-001-1

BALANCE SHEET
On December 31st, 2013
FORM NO. B 01-DN
Unit: VND
ASSETS
A.
I.
II.

SHORT-TERM ASSETS
(100=110+130+140+150)
Cash and cash equivalents
1. Cash
2. Cash equivalents
Short-term receivables

Cod
e
100

Not
e

110
111
112
130

1.
Receivables
from
customers
2. Advance payment to
sellers
3. Other receivables
4. Reserve for doubtful
receivables
Inventories
1.Inventories
Other short-term assets
1.Short-term
advanced
payments
2. Deducted VAT
3. Other short-term assets
LONG-TERM ASSETS (200=
220+ 260)
Long-term assets
1. Visible long-term assets
-Original price
-Accumulated depreciation

131

2. Invisible long-term assets


-Original price
-Accumulated depreciation
3. Cost of construction in
progress
II.
Other long-term assets
1.
Long-term
advance
payments
2. Other long-term assets
TOTAL ASSETS (270= 100+ 200)

227
228
229
230

III.
IV.

B.
I.

December
31st,
2013
2,114,166,872,38
2
927,255,755,668
367,255,755,668
560,000,000,000
1,129,909,873,28
0
1,114,048,441,56
0
13,461,049,455

December 31st,
2012
1,690,259,161,1
05
585,289,336,243
337,289,336,243
248,000,000,000
1,053,344,894,9
72
1,001,731,429,7
62
49,849,697,493

132

135
139

2,910,382,265
(510,000,000)

2,273,767,717
(510,000,000)

140
141
150
151

11,153,961,998
11,153,961,998
45,847,281,436
3,405,970,098

9,332,239,117
9,332,239,117
42,292,690,773
5,134,598,880

41,869,826,538
571,484,800
433,169,674,914

36,776,607,093
381,484,800
359,035,102,452

419,608,891,753
367,624,998,512
487,103,923,108
(119,478,924,596)
46,981,273,171
48,683,815,186
(1,702,542,015)
5,002,620,070

355,070,443,599
276,986,274,694
358,216,847,658
(81,230,572,964
)
45,871,423,479
47,007,222,820
(1,135,799,341)
32,212,745,426

260
261

13,560,783,161
10,729,306,126

3,964,658,853
1,343,181,818

268
270

2,831,477,035
2.547.336.547.29
6

2,621,477,035
2,049,294,263,5
57

152
158
200
220
221
222
223

10

11
12

Notes from page 71 to page 91 are components of financial statements.

BALANCE SHEET (cont.)


On December 31st, 2013
FORM NO. B 01-DN
Unit: VND
Liabilities
A.

Cod
e
310+ 300

Not
e

December
31st,
2013
1,523,423,462,79
2
1,523,403,462,79
2
1,478,290,239,52
8
3,095,297,838

December 31st,
2012
1.053.534.077.0
37
1.053.534.077.0
37
1.004.212.475.0
21
23.446.404.814

5,113,957,861

976.578.987

22,907,575,724
13,028,213,331

4.088.102.933
20.752.144.602

323

914,178,510

58.370.680

330
333
400

995.760.186.520

DEBTS (300=
330)
Short-term debts

310

1. Payables to sellers

312

13

2. Taxes and other


receivables
from
State
3.
Payables
to
employees
4. Payable expenses
5. Other short-term
payables
6. The reward and
welfare fund
Long-term debts
1. Long-term payables
Capital
of
owners
(400= 410)
Capital of owners

314

14

1. Capital of owners
2.
Funds
for
investment
and
development
3. Financial reserve
fund
4. Other capital of
owners
5. Undistributed profit
after tax
TOTAL
CAPITAL
(440=300+ 400)

411
417

20,000,000
20,000,000
1,023,913,084,50
4
1,023,913,084,50
4
429,000,000,000
420,022,582,837

418

42,896,731,029

42.896.731.029

419

12,450,000,000

6.000.000.000

420

119,543,770,638

182.030.872.654

440

2.547.336.547.29
6

2,049,294,263,5
57

I.

II.
B.
I.

Prepared by
Nguyen Ha An
(Signed)

315
316
319

410

15
16

17

Chief Accountant
Nguyen Phuong Thuy
(Signed)

995.760.186.520
429.000.000.000
335.832.582.837

Director
Nguyen Van Son
(Signed and sealed)

February 11th, 2014


Notes from page 71 to page 91 are components of the financial statement

INCOME STATEMENT
For financial year ends on December 31st, 2013
FORM NO. B 02-DN
Unit: VND
Criteria
1. Revenue from goods
sale and service supply
2. Revenue deductions
3. Revenue from goods
sale and service supply
(10= 01- 02)
4. The prices of sold
goods
and
supplied
services
5. Gross profit of goods
sales and service supply
(20= 10- 11)
6. Revenue from financial
operations
7. Selling expenses

Code Note
01
19

8.
Enterprise
management expenses
9. Profits from business
operations (30 = 20 + 21
- (24 + 25))
10. Other incomes
11. Other expenses
12. Other (losses)/ Profits
(40 = 31-32)
13. The total accounting
profits before tax (50 =
40 + 30)
14. Expenses of current
business income tax
15. Profits after business
income tax (60 = 50-51)
16. Basic earnings on
shares

25

Prepared by
Nguyen Ha An
(Signed)

02
10
11

20

20

2013
6,422,140,174,7
96
6,422,140,174,7
96

2012
5,487,575,459,8
63
5,487,575,459,8
63

5,903,089,774,2 5,012,108,078,3
24
25
519,050,400,57
2

475,467,381,53
8

24,239,308,154

49,635,822,996

191,459,825,47
7
70,345,165,240

165,107,933,71
5
56,001,792,443

30

281,484,718,00
9

303,993,478,37
6

31
32
40

12,421,871
227,025,820
(214,603,949)

70,917,642
70,917,642

50

281,270,114,06
0

304,064,396,01
8

22

72,170,534,738

76,045,349,005

23

209,099,579,32
2
4,874

228,019,047,01
3
5,315

21

21

24

51
60
70

Chief Accountant
Nguyen Phuong Thuy
(Signed)

Director
Nguyen Van Son
(Signed and sealed)

February 11th, 2014


Notes from page 71 to page 91 are components of financial statement.

CASH FLOWS STATEMENT


For financial year ended on December 31st, 2013
Criteria
Code 2013
I. CASH FLOWS FROM BUSINESS
OPERATIONS
1. Profits before tax
01
281,270,114,06
0
2. Adjustments for items
Depreciation of fixed assets
02
42,245,535,712
Reserves
03
(Interests)
from
investment 05
(24,239,308,154
operations
)
3.
Profits
from
business 08
299,276,341,61
operation before changes in
8
working capital
Changes in receivables
09
(114,978,216,18
7)
Changes in inventories
10
(1,821,722,881)
Changes in payables
11
497,942,871,92
0
Changes in prepaid expenses 12
(6,884,307,426)
and other short- term assets
Paid business income tax
14
(93,391,419,161
)
Other payments for business 16
(8,490,873,508)
operations
Net cash flows from business 20
571,652,674,37
operations
5
II.
CASH
FLOWS
FROM
INVESTMENT OPERATIONS
1. Cash paid for purchase of 21
(73,176,298,659
fixed assets construction
)
2. Collecting interests from 27
23,089,863,709
deposits, dividends and divided
profits
Net cash flows from investment 30
(50,086,434,950
operations
)
III.
CASH
FLOWS
FROM
FINANCIAL OPERATIONS
1.
Dividends
paid
to 36
(179,599,820,00
shareholders
0)
Net
cash
flows
financial 40
(179,599,820,00
operations
0)
Net cash flows in the year (50 = 50
341,966,419,42
20 + 30 + 40)
5
Cash and cash equivalents at 60
585,289,336,24
the beginning of the year
3
Cash and cash equivalents at 70
927,255,755,66
the end of the year
8

FORM NO. B 03-DN


Unit: VND
2012
304,064,396,01
8
36,430,413,186
510,000,000
(49,635,822,996
)
291,368,986,20
8
(432,554,079,58
5)
45,884,379
209,842,551,94
1
(5,670,669,436)
(68,609,139,458
)
(11,040,081,059
)
(16,616,547,010
)
(124,989,895,68
6)
53,000,711,885
(71,989,183,801
)
(99,248,937,500
)
(99,248,937,500
)
(187,854,668,31
1)
773,144,004,55
4
585,289,336,24
3

Prepared by
Nguyen Ha An
(Signed)
February 11th, 2014

Chief Accountant
Nguyen Phuong Thuy
(Signed)

Director
Nguyen Van Son
(Signed and sealed)

NOTES TO THE FINANCIAL STATEMENT


These notes are components of and must be read with the enclosed financial
statement.
FORM NO. B 09-DN
1. GENERAL INFORMATION
Forms of capital ownership
Petro Vietnam Low Pressure Gas Joint Stock Company (Company)are
established and operated in Vietnam in the form of a joint stock company
under the first Certificate of business registration No. 4103006815 dated
May 23rd, 2007 and adjusted licenses. According to the sixth Certificate of
business registration dated May 25th 2012, Company's charter capital is 429
billion VND. Company's shares are listed on the Stock Exchange, Ho Chi Minh
City with security code of PGD.
The parent company of the Company is PETROVIETNAM GAS CORPORATION Joint Stock Company holding 50.5% of charter capital.
Total number of employees of the Company on December 31st, 2013 is 171
(on December 31st, 2012 is 161).
The main operations
The Company's main operations include business and transportation of low
pressure gas by pipeline; Industrial gas business (not purchasing gas in Ho
Chi Minh City), materials, machines, chemical devices and transport vehicles
for oil and gas industry; technology transfer consultancy; industrial work
construction, piping systems, yards, warehouses and filling stations serving
the oil and gas industry; trading, transport gasoline, oil, dry gas products,
business of LPG, CNG, LNG and other products derived from oils, gases (not
trading gas at company's headquarter); providing transport vehicles
conversion services (except for mechanical processing, electroplating, waste
recycling
at
company's
headquarter,
designing
means
of
transportation);trading, installation, repair and maintenance of devices used
for converting transport vehicles, machines and devices for agriculture forestry - fishery; trading of building materials, interior decoration; the real
estate business; construction of technical infrastructure of industrial parks,
residential areas and mining.
2. BASIS OF FINANCIAL STATEMENT AND FINANCIAL YEAR PREPARATION
Basis of financial statement preparation
The enclosed financial statement is presented in Vietnam dong (VND), under
the historical cost principle and in accordance with Vietnam accounting
standards, corporate accounting regime and the legal provisions related to
the preparation and presentation of financial statement.
The enclosed financial statement is not intended to reflect the financial
status, results of business operations and cash flows in accordance with
accounting principles and practices generally accepted in other countries
and Vietnam.
Financial year
The Company's financial year begins on January 01st and ends on December
31st.
3. APPLICATION OF NEW ACCOUNTING GUIDELINES
New guidelines on regimes of management, use and depreciation extract of
fixed assets.
On April 25th, 2013, the Ministry of Finance issued Circular No. 45/2013/TTBTC ("Circular 45"), guiding the management, use and depreciation extract
of fixed assets. This Circular replaces Circular No. 203/2009/TT-BTC ("Circular

203") dated October 20th, 2009 by the Ministry of Finance, guiding the
management, use and depreciation extract of fixed assets. The Circular 45
takes effect as from June 10th 2013 and is applied to financial year 2013
onwards; Board of management found that Circular 45 causes no serious
effect on financial statement of the Company for the financial year ended on
December 31st, 2013.
4. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES
The following are the principal accounting policies applied by the Company
in preparing financial statement:
Accounting Estimates
The preparation of financial statement in compliance with Vietnam
accounting standards, corporate accounting regimes and legal provisions
related to the preparation and presentation of financial statement requires
Board of management to make estimates and assumptions affecting the
reported data of debts, assets, and disclosures of prospective assets and
debts at the date of preparing the financial statement as well as the reported
data of revenues and expenses during the financial year.Although the
accounting estimates were made in the understanding of Board of
management, actual numbers arising may differ from the estimates,
assumptions laid out.
Financial tools
Initial recognition
Financial assets: at initial recognition, financial assets are recorded
according to original price plus transaction costs which are directly related to
the purchase of financial assets. Financial assets of the Company include
cash and cash equivalents, receivables from customers and other
receivables.
Financial debts: at initial recognition, financial debts are recorded at original
price plus transaction costs which are directly related to the issuance of
financial debts. The Company's financial debts include payables to sellers,
other payables and payable fees.
Reevaluation after the initial recognition
Currently, there is no provision on revaluation of financial tools after initial
recognition.
Cash and cash equivalents
Cash and cash equivalents include cash in funds, deposits payable on
demand, short-term investments with high liquidity, easily converted into
cash and low risk related to fluctuations in value.
Provision for doubtful debts
Provision for doubtful debts is made for receivables which were overdue for
six months or more, or the receivables that are unlikely to be paid due to
liquidation, bankruptcy or similar difficulties.
Inventories
Inventories are determined on the basis of the lower price between original
price and realizable net value. Original prices of inventories include
expenses of direct materials, direct labor expenses and common production,
if any, in order to get inventories at present location and status. Original
prices of inventories are determined by weighted average method.
Realizable net value is determined by the estimated selling price, subtracting
estimated expenses for arising product completion, marketing, sales and
distribution.

Provision for impairment of inventories of the Company is made in


accordance with current accounting regulations. Accordingly, the Company is
allowed to make provision for impairment of inventories which are obsolete,
damaged, poor quality and in the case of original prices of inventories are
higher than the realizable net value on the day accounting year ends.

NOTES TO THE FINANCIAL STATEMENT (cont.)


These notes are components of and must be read with the enclosed financial
statement.
FORM NO. B 09-DN
Tangible fixed assets and depreciation:
Tangible fixed assets are presented according to original price subtracting
accumulated depreciation.
Original prices of tangible fixed assets include buying price and other
expenses directly related to putting assets in use.
Tangible fixed assets are depreciated on the straight-line method based on
estimated useful time, specifically as follows:
2013
Number of years
Housing and architectural objects
5 20
Machines and devices
3 10
Office devices
36
Transport vehicles
6
Intangible fixed assets and depreciation
Intangible fixed assets of the Company represent rights of land- use,
computer software and other intangible fixed assets. Fixed-term land use
right is depreciated on the basis of actual time granted, non-fixed term land
use right is not depreciated. The computer software and intangible fixed
assets are depreciated on the straight-line method based on useful time
estimated from3 to 5 years.
Construction in progress
Assets in the process of building for purposes of production, leasing,
management or any purpose are recorded at original prices. The expenses
include service expense and relevant interest expense in accordance with
accounting policies of the Company. Depreciation of these assets is applied
as the other ones, beginning when the assets are ready for use.
Revenue recognition
Sales revenue is recognized when simultaneously satisfying all five (5) of
following conditions:
a) The Company has transferred most of the risks and benefits associated
with ownership of products and goods to buyers;
b) Company no longer holds the right to manage as the owner of goods or
right to control goods.
c) Revenue is defined reliably
d) The company will gain economic benefits from the sale transactions; and
e) Identify expenses related to sale transactions
Interest on deposits is recognized on an accrual basis, which is determined
on the balance of the deposit account and the applied interest rate.
Provisions
The provisions are recognized when the Company has a present debt
obligation as a result of an event happened, and the Company may have to
pay this obligation. The provisions are determined based on Board of

management's estimations on necessary expenses to settle the obligation at


the end of the accounting year.

NOTES TO THE FINANCIAL STATEMENT (cont.)


These notes are components of and must be read with the enclosed financial
statement.
FORM NO. B 09-DN
4. SUMMARY OF PRINCIPALACCOUNTING POLICIES (cont.)
Taxation
Business income tax represents the sum of the current payable tax and
deferred tax.
The current payable tax is calculated based on taxable income for the year.
Taxable income differs from net profit reported in the income statement
because it excludes items of income or expense that are taxable or
deductible in other years (including loss carried forward, if any) and it further
excludes items that are never taxable or deductible.
Deferred tax is recognized on significant differences between recorded value
and income tax calculation basis of assets or debts in the financial
statements and is recognized on the method of the balance sheet. Payable
deferred income tax must be recognized for all temporary differences while
deferred income tax assets are only recognized when there are enough
taxable profits in future for deduction of temporary differences.
Deferred income tax is determined using tax rates expected to apply for the
year assets are reclaimed or payable debts are paid. Deferred tax is
recognized in the business operating result and only charged and credited in
the equity when the tax is related to items charged or credited directly to
equity.
Deferred income tax assets and deferred income tax debts are compensated
when there is a legally enforceable right to compensate current income tax
assets and payable current income tax and when deferred income tax assets
and payable deferred income tax debts related to business income tax
managed by the same Tax Department and the Company intends to pay
current income tax on a net basis. The Company does not record deferred
business income tax because there is no significant difference between
recorded value of items of assets or debts on the balance sheet and business
income tax basis on December 31st 2013
The determination of the Companys income tax is based on the current tax
regulations. However, these regulations change to periodically and the final
determination of business income tax depends on the results of
examinations of the Tax Department.
Other taxes are applied in accordance with the current tax law in Vietnam.

NOTES TO THE FINANCIAL STATEMENT (cont.)


These notes are components of and must be read with the enclosed financial
statement.
FORM NO. B 09-DN
5. CASH AND CASH EQUIVALENTS
December 31st,2013
VND
Cash
165.130.923
Bank deposits
367.090.624.745
Cash equivalents
560.000.000.000
927.255.755.668

December 31st,2012
VND
38.523.314
337.250.812.929
248.000.000.000
585.289.336.243

6. PREPAYMEN TO SUPPLIER
December
31st,2013
VND
Petro Vietnam Coating Joint Stock 6.455.057.097
Company (i)
Petro Vietnam Construction Joint 4.986.702.672
Stock Company 2 (ii)
Others
2.019.289.686
13.461.049.455

December
31st,2012
VND
25.342.652.647
13.181.575.408
11.325.469.438
49.849.697.493

(i) On August 7th 2010, the Company signed a contract No. 15/2010/ pvgaSdpvid/d4 with the joint venture of Engineering/ Procurement/ Construction
(EpC) represented by Petro Investing and Construction JSC (now as Petro
Vietnam Coating JSC) on design provide of technological devices and work
construction for project of low pressure gas distribution to industrial zones in
NhonTrach District, Dong Nai Province stage 1; the contract value
(including value added tax) is temporarily calculated as 231,408,589,231
Dong on December 31st 2013, the advance balance payment for EpC
( represented by Petro Vietnam Coating JSC) is 6,455,057,097 Dong.
(ii) On January 17th 2011, the Company signed a contract No.
01/2011/pvgaSd-pvC2/Qlda with the joint venture of Engineering/
Procurement/ Construction (EpC) represented by
Petro Investing and
Construction JSC ( now as Petro Vietnam Coating JSC) on design purchase
of materials, equipment and construction and installation of works of offices
of PV Gas companies or PV Gas in Vung Tau ; the contract value (including
value added tax) is temporarily calculated as 68,861,021,747 Dong on
December 31st 2013, the advance balance payment for EpC ( represented by
Petro Vietnam Coating JSC) is 4,986,702,672 Dong.
7. OTHER RECEIVABLES
December
December
31st,2013
31st,2012
VND
VND
Petro
Vietnam
Trade
Union 1.652.845.785
1.789.229.707
Finance Investment JSC
Interest receivable expected to 1.149.444.445
collect
Receivables of personal income 8.000.000
419.438.010

tax paid on behalf of employees


Other receivables

100.092.035
2.910.382.265

65.100.000
2.273.767.717

31/12/2013
VND
Materials
9,968,400,375
Instruments and tools
726,930,051
Goods
458,631,572
Total
11,153,961,998
Less: Provision for devaluation of inventories
Net value that can be 11,153,961,998
applied of inventories

31/12/2012
VND
8,278,802,557
739,016,052
314,420,508
9,332,239,117
-

8. INVENTORIES

9. SHORT-TERM PREPAID EXPENSES


31/12/2013
VND
Renting advertising board
2,936,169,751
Other renting
469,800,347
3,405,970,098
10. TANGIBLE FIXED ASSETS
House and Machinery
Transporti
architect
and
ng
objects
equipment
services

9,332,239,117

31/12/2012
VND
4,668,598,880
466,000,000
5,134,598,880
Office
equipment
Total

VND
ORIGINAL COST

VND

VND

VND

VND

On
4,068,114,06
01/01/2013 6
New
140,566,271
purchasing
Completed
68,140,751,6
basic
01
constructio
n
Other
(46,569,600)
decrease
On
72,302,862,3
31/12/2013 38
ACCUMULATED
DEPRECIATION
On
2,138,631,69
01/01/2013 0
Depreciatio 695,359,686
n in the
year
Other
(46,569,600)
decrease
On
2,787,421,77
31/12/2013 6
THE
REMAININ
G VALUE
On
69,515,440,5
31/12/2013 62
On
1,929,482,37

346,505,884,4
83
357,135,502

1,018,211,6
57
906,225,000

6,624,637,45
2
134,000,000

358,216,847,6
58
1,537,926,773

63,812,026,58
2

131,952,778,1
83

(317,113,802)

(254,578,81
2)
1,669,857,8
45

(3,985,367,2
92)
2,773,270,16
0

(4,603,629,50
6)
487,103,923,1
08

74,420,902,87
6
39,695,453,32
6

461,465,364

4,209,573,03
4
902,416,632

81,230,572,96
4
41,678,793,03
8

(277,660,423)

(165,366,78
2)
681,661,976

(2,940,844,6
01)
2,171,145,06
5

(3,430,441,40
6)
119,478,924,5
96

988,195,869

602,125,095

556,746,293

2,415,064,41

367,624,998,5
12
276,986,274,6

410,357,932,7
65

113,838,695,7
79

296,519,236,9
86
272,084,981,6

385,563,394

31/12/2012

07

94

Original cost of tangible fixed asset including fixed assets that have been
totally depreciated but still used on December 31st 2013 is 3,674,232,990
dong (the amount on December 31st, 2012: 2,961,127,073 dong).
Tangible fixed assets of the Company include the tangible fixed assets
Head offices of Petrovietnam Low Pressure Gas Distribution Joint Stock
Company (PVGAS D) and Petrovietnam Southern Gas Joint Stock Company
(PVGAS S) in Vung Tau on the basis of the Business Cooperation Contract No.
28/2010/KTA-GAS S/QLDA dated December 8 th 2010 between PVGAS D and
PVGAS S. According to the contract, the Company is responsible for the
accounting and management of these tangible fixed assets. The details of
these assets are as follows:
31/12/2013
31/12/2012
VND
VND
Original cost
68,140,751,601
Accumulated depreciation
65,942,663
The remaining value
68,206,694,264
11. INTANGIBLE FIXED ASSETS
Land use
rights
Computer
Software
Others
Total
VND
VND
VND
VND
ORIGINAL
COST
On 01/01/2013 45,318,473,22 1,619,949,60 68,800,00 47,007,222,82
0
0
0
0
New
1,450,000,00 1,450,000,000
purchasing
0
Other
226,592,366
226,592,366
devaluation
On 31/12/2013 45,545,065,58 3,069,949,60 68,800,00 48,683,815,18
6
0
0
6
ACCUMULATE
D
DEPRECIATION
On 01/01/2013 1,095,666,01 40,133,33 1,135,799,341
1
0
Depreciation
543,809,336
22,933,33 566,742,674
in the year
8
On 31/12/2013 1,639,475,34 63,066,66 1,702,542,015
7
8
THE
REMAINING
VALUE
On 31/12/2013 45,545,065,58 1,430,474,25 5,733,332 46,981,273,17
6
3
1
On 31/12/2012 45,318,473,22 524,283,589
28,666,67 45,871,423,47
0
0
9
Original cost of intangible fixed asset including fixed assets that have been
totally depreciated but still used on December 31 st 2013 is 272,849,600
dong (the amount on December 31st, 2012: 125,555,600 dong).

12. IN- PROGRESS CONSTRUCTION EXPENSES


31/12/2013
31/12/2012
VND
VND
Low pressure gas distribution system 548,538,883
in Hiep Phuoc industrial zone
Company controlling office in Vung Tau 27,950,495,197
city
Low pressure gas distribution system 4,266,939,786
3,320,984,074
in Tien Hai Thai Binh industrial zone
Others
735,680,284
392,727,272
5,002,620,070
32,212,745,426
13. PAYBALES TO THE SUPPLIERS
31/12/2013
31/12/2012
VND
VND
PetroVietnam Gas Corporation- 1,473,761,910,164
993,000,950,682
JSC
Others
4,528,329,364
11,211,524,339
1,478,290,239,528
1,004,212,475,021
14. TAXES AND DUTIES PAYABLES TO THE STATE
31/12/2013
31/12/2012
VND
VND
Corporate Income Tax
2,046,162,287
23,267,046,710
Personal Income Tax
1,049,135,551
179,358,104
3,095,297,838
23,446,404,814
Detail of completing duties to the state as following:
Items

31/12/2012

23,267,046,7
10
179,358,104

Amount
Paid amounts
payables
VND
VND
35,332,060,229 35,332,060,22
9
72,170,534,738 93,391,419,16
1
6,038,710,244
5,168,932,797

21,381,600

21,381,600

2,046,162,2
87
1,049,135,5
51
-

3,000,000

3,000,000

23,446,404,8
14

113,565,686,81 133,916,793,7
1
87

VND
Output VAT Corporate
Income Tax
Personal
Income Tax
House and
land
tax,
land fee
Other
charges,
fees
and
duties
payables
Total

On
31/12/2013
VND
-

3,095,297,8
38

15. COST PAYBALES


31/12/2013
31/12/2012
VND
VND
Payable to the work of gas distribution 2,495,270,638
to Nha Be Steel Joint Stock Company
Payable to the work of Head offices of 4,864,967,921
PVGas D PVGas S in Vung Tau to
Petrovietnam Construction 2 JSC
Payable to the work of Nhon Trach 8,491,990,991
Phase 1 to Petrovietnam Coating JSC
Payable to the shuttle launching to test 3,808,800,000
the corrosion in the 14 pipeline Phu My
Go Dau Petrovietnam Gas Corporation
Joint stock company Gas service
company
Payable to the service of inspection and 1,450,000,000
assessment of the pipeline system Phu
My My Xuan Go Dau Phase 1 to
Trung Tin A Chau Trading Services
Company Limited
Payable to the project of Hiep Phuoc to 797,686,663
Petrovietnam Coasting JSC
Payable to the work of low pressure gas 561,190,856
2,244,763,422
distribution in Nhon Trach to Electric
Power and Petroleum Project Consulting
and Managing 2 One-Member Company
Limited
Payable to the work of low pressure gas 1,843,339,511
distribution to Polima Steel Company
Other constructions
437,668,655
22,907,575,724 4,088,102,933
16. OTHER SHORT-TERM PAYABLES
31/12/2013
31/12/2012
VND
VND
Payable to Petrovietnam 11,374,000,0 11,374,000,0
Southern Gas JSC (i)
00
00
Dividends payable
726,374,500
8,726,194,50
0
Other payables
981,838,831
651,950,102
13,082,213,3 20,752,144,6
31
02
th
(i) On December 8 2010, the Company had signed the Contract No.
28/2010/KTA -GAS S/QLDA with Petrovietnam Southern Gas JSC (PVGAS S) on
Cooperation in the construction and exploitation of the head offices of
PVGAS D and PVGAS S in Vung Tau on the land managed by the Company
and PVGAS S in Thang Nhat ward, Vung Tau city with the ratio of capital
contribution: PVGAS D for 50%, PVGAS S for 50% of the total investment
capital. The estimated value of the contract is 68,884,298,891 dong. On May
6th 2011, the Company received the advance of 11,374,000,000 dong from
PVGAS S.

17. OWNERS EQUITY


Equity
Develop
Financial
Other
Retained
Total
investmen ment and provision fund in profits
t capital
Investme fund
equity
after
nt fund
taxes
VND
VND
VND
VND
VND
VND
429,000,000,00
191,921,745,4
32,946,731,02
224,353,782,0
878,222,258,507
01/01/201
0
41
9
37
2
228,019,047,0
228,019,047,013
Profit in the 13
year
143,910,837,3
9,950,000,000
6,000,000,0
(159,860,837,
Extracting
96
00
396)
funds from
the profit
(3,031,119,00
(3,031,119,000)
Extracting
0)
welfare and
reward fund
(200,000,000)
(200,000,000)
Extracting
Executive
Board
reward fund
(107,250,000,
(107,250,000,00
Dividend
000)
0)
distribution
429,000,000,00
335,832,582,8
42,896,731,02
6,000,000,0
182,030,872,6
995,760,186,520
31/12/201
0
37
9
00
54
2
209,099,579,3
209,099,579,322
Profit in the 22
year
84,190,000,00
(84,190,000,0
Extracting
0
00)
investment
and
developmen
t funds (i)
(9,046,681,33
(9,046,681,338)
Extracting
8)
welfare and
reward fund
(ii)
(300,000,000)
(300,000,000)
Extracting
Executive
Board
reward (i)
6,450,000,0
(6,450,000,00
Extraction
00
0)
fund
of
supplement
to
charter
capital (i)
(171,600,000,
(171,600,000,00
Dividend
000)
0)
distribution
429,000,000,00
420,022,582,8
42,896,731,02
12,450,000,
119,543,770,6
1,023,913,084,5
31/12/201
0
37
9
000
38
04
3
(i) In 2013, the Company had extracted Development and Investment fund with
total amount of 84,190,000,000 dong, Fund of supplementing to charter capital
with total amount of 6,450,000,000 dong and Fund of executive board reward
with the amount of 300,000,000 dong from profit after tax of the financial year

ended December 31, 2012 according to Resolution of the Annual General


Meeting of Shareholders on April 25th, 2013.
(ii) According to Resolution of the Annual General Meeting of Shareholders on
April 25th, 2013, the Company also implements provisionally extracting welfare
and reward fund with the amount of 9,046,681,338 dong subject to Approved
Plan of profit distribution 2013. The executive board believes that this
provisional extracted fund of welfare and reward from profit in 2013 shall be
approved in the Annual General Meeting of Shareholders 2014
Owners investment capital
Information about capital contribution of shareholders on December 31 st,
2013 as following:
Practical
contributed Practical
contributed
capital on 31/12/2013
capital on 31/12/2012
VND
%
VND
%
PetroVietnam
216,645,000,000
50,50
216,645,000,000
50,50
Gas Corporation
Other
212,355,000,000
49,50
212,355,000,000
49,50
shareholders
429,000,000,000
100,00 429,000,000,000
100,00
Shares:
31/12/2013
31/12/2012
VND
VND
Number of sold shares issued 42,900,000
42,900,000
publicly
+ Common shares
42,900,000
42,900,000
+ Preferred shares
Number of treasury share
+ Common shares
+ Preferred shares
Number of outstanding shares
42,900,000
42,900,000
+ Common shares
42,900,000
42,900,000
+ Preferred shares
Par value of common share: 10,000/ share
Dividend
According to Resolution of the Annual General Meeting of Shareholders on
April 25th 2013, the Company had publicized dividend of stage 2 from profit
after tax 2012 in 2013 with total amount of 85,800,000,000 dong (equivalent
to 1,500 dong/share).
According to Resolution of the Board of AC dated July 31 st 2013 and October
28th, 2013, the Company had paid in advance dividend of stage 1 and stage
2 with total amount of 85,800,000,000 dong (equivalent to 1,500
dong/share). The official decision will be approved by the Annual General
Meeting of Shareholders 2014.
18.
DEPARTMENT
ACCORDING
TO
BUSINESS
LINES
AND
GEOGRAPHICAL AREA
In the year, the company traded the only product of low pressure gas
(natural gas) in pipeline and only operated in Vietnam territory. Then, the
Company had no department according to business lines other than low
pressure gas or any other geography areas outside Vietnam territory.
19. SERVICE PROVISION AND SALES REVENUES

2013
VND
from 6,421,312,077,687

2012
VND
5,487,303,628,550

Revenue
selling gas
Revenue
from 828,097,109
271,831,313
service supply
6,422,140,174,796
5,487,575,459,863
20. COST OF GOODS SOLD AND SUPPLYING SERVICE
2013
2012
VND
VND
Cost of goods sold for 5,902,791,887,424
5,011,991,523,780
gas
Cost of goods sold for 297,886,800
116,554,545
service supply
5,903,089,774,224
5,012,108,078,325
21. REVENUE FROM FINANCIAL ACTIVITIES
Income from financial activities of the Company is the term and non term
deposit interest in banks and financial institutes.
22. CORPORATE INCOME TAX
2013
2012
VND
VND
Profit before tax
281,270,114,060
304,064,396,018
Adjustment for taxable income
Less: Non-taxable income
Plus:
Non-deducted 147,000,000
117,000,000
expenses
117,000,000
- Reward of the Board of 147,000,000
Directors,
Board
of
Supervisors
Taxable income
281,417,114,060
304,181,396,018
Common tax rate
25%
25%
Supplementary corporate 1,816,256,224
income tax (i)
Corporate income tax 72,170,534,738
76,045,349,005
payable
(i) The Company recorded and paid the supplementary corporate income tax
according to the report of the State Audit dated May 7th 2013
23. BASIC EANRING PER SHARE
The calculation of earnings per share is basing on following data:
2013
VND
calculate 209,099,579,322

Basic
profit
to
earnings per share
Average
number
common share
Earnings per share

of 42,900,000
4,874

2012
VND
228,019,047,013
42,900,00
5,315

24. BUSINESS AND PRODUCTION COST ACCORDING TO FACTORS


2012
2011

Gas purchasing cost


Staff cost
Instrument and tool
cost
Fixed
asset
depreciation cost
Fixed asset renting
cost
Cost
of
outside
service purchasing
Cost of office leasing
Cost of advertising
Cost of reward
Other costs

VND
5,902,791,887,424
46,387,635,408
4,963,731,650

VND
5,011,991,523,780
40,479,286,179
3,651,767,841

42,245,535,712

36,430,413,186

60,010,850,004

60,010,850,004

17,975,601,676

14,415,724,345

5,872,208,346
7,851,691,929
1,639,588,884
75,156,033,908
6,164,894,764,941

5,652,106,005
5,000,311,433
1,278,124,734
54,307,696,976
5,233,217,804,483

25. FINANCIAL INSTRUMENTS


Capital Risk management
The Company manages fund in order to ensure that the Company could
operate continuously and maximize the benefit of the shareholders through
optimization of balance of capital and liabilities.
Companys capital structure includes owners equity (capitals are
contributed by shareholders, reserve funds and undistributed profit after
tax).
Major accounting policies
Details of major accounting policies and methods the Company applies
(including the criteria for recognition, the basis of determining value and the
basis of income and expense recognition) to each category of financial
assets and financial liabilities presented in Notes 4
Types of financial tools:
Carrying value
March 31st 2013
March 31st 2013
VND
VND
Financial assets
Cash
&
Cash 927,255,755,668
585,289,336,243
equivalents
Trade
and
other 1,116,440,823,825
1,003,075,759,469
receivables
Total
2,043,696,579,493
1,558,365,095,712
Financial liabilities
Trade
and
other 1,490,594,937,306
1,024,417,887,334
payables
Accrued expenses
22,907,575,724
4,088,102,933
Total
1,513,502,513,030
1,028,505,990,267
The Company has not yet assessed the reasonable value of financial assets
and financial liabilities at the end of the accounting year since Circular
210/2009/TT-BTC by Ministry of Finance on November 6 th 2009 (Circular
No.210) and current Regulations do not provide specific guidance on the

determining the reasonable value of financial assets and financial liabilities.


Circular No.210 requires applying International Financial Reporting
Standards on financial situation report and information disclosure on
financial tools but do not provide equivalent guidance for assessment and
recognition of financial tools including applying reasonable value to match
up with International Financial Reporting Standards.
Goals of financial risk management:
The Company has developed financial risk management system for risk
detection and assessment that the companies have to suffer, sets up
policies and risk control processes at an acceptable level. The financial risk
management system is reviewed periodically in order to reflect changes in
market condition and the Companys operations.
Financial risk includes market risk (including exchange rate risk, interest
rate risk and price risk), credit risk and settlement risk.
Market risk
The Company has done a careful assessment on financial risk related to
production and business activities and assumes that the Company does not
have significant risks related to changes of exchange rate, interest rate and
changes in price of goods.
Credit risk
Credit risk refers to the risk that counterparty will default on its contractual
obligations resulting in financial loss to the Company. The Company has a
credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The Company does not have any significant credit risk exposure
to any counterparty because receivables consist of a large number of
customers, spread across diverse industries and geographical areas.
Liquidity risk management
The purpose of liquidity risk management is to ensure the availability of
funds to meet present and future financial obligations. Liquidity is also
managed by ensuring that the excess of maturing liabilities over maturing
assets in any period is kept to manageable levels relative to the amount of
funds that the Company believes can generate within that period. The
Company policy is to regularly monitor current and expected liquidity
requirements to ensure that the Company maintains sufficient provisions of
cash, bank deposits, borrowings and adequate capital committed from its
owners [shareholders] to meet its liquidity requirements in the short and
longer term.
The following table details the Companys remaining contractual maturity for
its non-derivative financial assets and financial liabilities with agreed
repayment periods. The tables have been drawn up based on the
undiscounted cash flows of financial assets and undiscounted cash flows of
financial liabilities based on the earliest date on which the Company can be
required to pay. The inclusion of information on non-derivative financial
assets is necessary in order to understand the Companys liquidity risk
management as the liquidity is managed on a net asset and liability basis.
Dec 31st 2013
Cash & cash equivalents
Trade
and
other

Less
than
1
year
VND
927.255.755.668
1.116.440.823.82

From 15 years
VND
-

Total
VND
927.255.755.668
1.116.440.823.825

receivables

5
2.043.696.579

2.043.696.579

1.490.594.937.30
6
22.907.575.724
1.513.502.513.03
0
530.194.066.463

1.490.594.937.306

22.907.575.724
1.513.502.513.030

530.194.066.463

Dec 31st 2013

Less than 1 year


VND

Total
VND

Cash & cash equivalents


Trade
and
other
receivables

585.289.336.243
1.003.075.759.46
9
1.588.365.095.71
2

From 15 years
VND
-

st

Dec 31 2013
Trade
and
other
payables
Accrued expenses
Net liquidity gap

Dec 31st 2013


Trade
and
other
payables
Accrued expenses
Net liquidity gap

1.024.417.887.33
4
4.088.102.933
1.028.505.990.26
7
559.859.105.445

585.289.336.243
1.003.075.759.469
1.588.365.095.712

1.024.417.887.334

4.088.102.933
1.028.505.990.267

559.859.105.445

The Board of Director assessed the liquidity risk concentration at low


level. The Board of Director believes that the Company will be able to
generate sufficient funds to meet its financial obligations as and when
they fall due.
26. TRANSACTIONS AND BALANCES WITH RELATED PARTIES
During the year, the Company had mainly transacted with the following
parties:
2013
2012
VND
VND
PetroVietnam Gas Joint Stock Corporation
5,973,648,087,8 5,081,455,098,6
35
94
- Gas purchase
5,902,791,887,4 5,011,991,523,7
24
80
- Rent Office space
5,399,887,896
5,649,950,190
- Renting of low pressure gas distribution 60,010,850,004
60,010,850,004
system stage 2
- Lunch expense
311,133,553
653,264,182
- Electricity expense
156,064,155
226,690,873
- PV Gas Project Consulting Management 945,955,712
2,790,819,665
Company
- PV Gas Services Company
4,032,309,091
132,000,000
- PV Coating JSC (formerly PV Gas 83,221,622,322
1,493,323,955
Investment &Construction JSC)
PV Construction JSC 2
34,955,002,634
17,942,209,640
PVI Sun Life Insurance Company Limited
36,690,000,000
-

Petrovietnam Insurance Joint Stock Corporation


Southern Oil and Gas Insurance
Company
Petrovietnam Insurance Company in Vung
Tau
Vietnam
Petroleum
Safety
Services
Corporation
Petroleum Pipeline & Tank Construction
Joint Stock Company
PetroVietnam security service corporation
PetroVietnamCorporation
PV Power PMC 2
Petrovietnam finance investment and
consultancy joint stock company
Consulting
Center
for
Design
&
Construction
Petrovietnam
Technical
Safety
Registration Company Limited
Petrovietnam Power Project Consulting
Joint Stock Company
Petrovietnam
Energy
Technological
Corporation Joint Stock Company
The Southern Petroleum Construction
Company
Petrovietnam
Trade
Union
Finance
Investment Corporation
Cuu
Long
Petrogas
Service

Transportation J.S.C
Petrovietnam Securities Incorporated Ho
Chi Minh branch
Petrovietnam NhonTrach 2 Power Joint
Stock Company
Petrovietnam Technical Service Joint Stock
Company
Sales
Petrovietnam Southern Gas Joint Stock
Company
CNG Vietnam Joint Stock Company

1,229,195,224

1,047,355,960

1,278,816,252

338,611,025

1,248,465,840

8,295,245,192

5,784,630,051

1,409,303,917
6,081,287,920
561,190,856
-

1,025,146,668
10,126,761,569
2,244,763,422
1,168,211,818

24,852,000

364,831,550

1,683,572,566

3,367,145,132

1,120,238,693

1,654,554,091

1,843,339,511

3,624,541,836

46,210,770,293

6,428,357,825

46,711,710

20,133,750

39,500,000

675,657,783,907

465,175,913,06
5
279,529,375,69
5

405,392,158,124

Financial Revenue
Petrovietnam
Trade
Union
Finance Investment Corporation
Petrovietnam Finance Corporation
Remuneration of Board of Directors
3,494,479,341

1,788,888,889
683,055,556
2,761,397,912

Main related party balances at the date of the balance sheet as follows:
Dec 31st 2013
Trade receivables
Petrovietnam Southern Gas Joint Stock 257,198,835,53
Corporation Joint Stock Company
8
CNG Vietnam Joint Stock Company
72,671,498,221

Dec 31st 2013


207,837,217,22
4
60,341,347,296

Other receivables
Petrovietnam
Trade
Union
Investment Corporation
Suppliers prepayment
PV Coating JSC (formerly
Investment & Construction JSC)
PV Construction JSC 2

Finance 1,652,845,785
PV

1,789,229,707

Gas 6,455,057,097

25,342,652,647

4,986,702,672

13,181,575,408

1,818,485,159

22,239,800

22,239,800

925,964,911

1,409,856,435

1,409,856,435

1,021,620,600

1,021,620,600

1,473,761,910,1
64
1,232,262,562

993,000,950,68
2
-

52,904,107

2,333,447,320

404,870,985

1,045,891,346

447,700,000

113,960,000

574,772,745

1,045,891,346

2,214,713

3,808,800,000

561,190,856
4,864,967,921

2,244,763,422
-

9,289,677,654

11,374,000,000

11,374,000,000

11,374,000,000
-

11,374,000,000
8,000,000,000

8,000,000,000

Petroleum Pipeline & Tank Construction


Joint Stock Company
Petrovietnam
Technical
Safety
Registration Company Limited
Petrovietnam Power Project Consultant
Joint Stock Company
Long-term collateral & deposit
Petrovietnam Southern Gas Joint Stock
Corporation Joint Stock Company
Cuu
Long
Petrogas
Service

Transportation J.S.C
Trade payables
Petrovietnam Southern Gas Joint Stock
Corporation Joint Stock Company
Petrovietnam
Energy
Technological
Corporation Joint Stock Company
Vietnam
Petroleum
Safety
Services
Corporation
Cuu Long Petro Gas Transportation Joint
Stock Company
PetroVietnam
Security
Service
Corporation
Cuu
Long
Petrogas
Service

Transportation J.S.C
Petrovietnam Nhon Trach 2 Power Joint
Stock Company
Accrued Expense
Petrovietnam Southern Gas Joint Stock
Corporation Joint Stock Company
Petrovietnam Gas Services
PV Power PMC 2
PV Coating JSC (formerly PV Gas
Investment & Construction JSC)
Petrovietnam Construction JSC 2
Other payables
Petrovietnam Southern Gas Joint Stock
Corporation Joint Stock Company
- Equity Investment payable
Petrovietnam Southern Gas Joint Stock
Corporation Joint Stock Company
- Dividends payable

27. COMMITMENT:
Operating lease commitment:
On August 18th 2009, the Company had signed asset lease contract No.
120/2009/PV GAS D/D4 with Petrovietnam Southern Gas Corporation One
member Limited Company (now as Petrovietnam Southern Gas Corporation
Joint Stock Company), to lease low pressure gas system in the stage 2. The
monthly lease amount is 5.000.904.167 dong since August 14th 2008.
On December 1st 2011, the Company had signed Contract No.
314/H/PVGAS/DAD-PVG.D/D4 with Petrovietnam Southern Gas Corporation
Joint Stock Company to lease the office space in the building PVGas Tower
with lease term of 2 years since December 1 st 2011, monthly lease amount is
22.5 US Dollar/ m2
Purchase commitment:
According to the purchased gas contract No. 70/2012/PVGAS/HK-PVGAS
D/B1 on March 16th 2012, supplementary appendix No. 03 on February 26 th
2013 between Petrovietnam Southern Gas Corporation Joint Stock
Company and the Company, which is valid from January 1 st 2013 to
December 31st 2013. The purchased gas cost from Petrovietnam Southern
Gas Corporation Joint Stock Company applied in 2013 was from 11.6 billion
US Dollar/MMBTU to 10.55 billion US Dollar/MMBTU (The purchased gas cost
applied in year 2012 was from 7.5 billion US Dollar to 10.55 US Dollar. The
cost in the following years would be agreed again at the end of the financial
year.
Capital commitment:
On December 31st 2013, the Company had capital commitment related to
some basic construction investment which has not been finished yet/ is in
progress follows:
Dec 31st 2013
VND
Project of low pressure gas distribution 24,388,703,741
to industrial parks in Nhon Trach
district, Dong Nai province Stage 1
System
of
low
pressure
gas 5,276,049,958
distribution in Hiep Phuoc industrial
park.
Operating office of the Company in 6,600,896,284
Vung Tau city
Project of gas supply in Steel Billet Factory
Steel
Pomina
Steel
Corporation
Project of gas supply system to Nha 144,571,099
Be Steel Joint Stock Company

Dec 31st 2013


VND
32,972,959,652
8,776,049,958
26,526,139,987
2,207,461,962
-

28. Events after ending the accounting year


On January 16th 2014, the Company held extraordinary general meeting and
issued a Resolution No. 03/NQ-HC/2013. Accordingly, the Company
planned to issue shares to raise chartered capital from 429 billion dong to
600 billion dong. The planned time is in 2014.
29. Other information
On November 26th 2013, Board of Directors of the Company issued a
Resolution No. 16/NQ-HQT/2013 to sell a fixed asset which is a mansion in
Trung Hoa Nhan Chinh urban area in the year 2014. The asset cost and
salvage value of the asset are 46.442.270.293 dong and 747.670.591 dong
respectively.
30. Comparative Figures
Comparative figures are those of the Companys audited statements for the
year ended December 31st 2011.
(Signed)
Nguyen Ha An
Table Preparer

(Signed)
Nguyen Phuong Thuy
Chief Accountant

(Signed and sealed)


Nguyen Van Son
Director

Petrovietnam Low Pressure Gas Distribution Joint Stock Company


Floor 7, PVGAS Tower Building No.673 Nguyen Huu Tho,
Phuoc Kien commune, Nha Be district, Ho Chi Minh City
Tel:(84.8) 3784 0445
Fax: (84.8) 3784 0445
www.pvgasd.com.vn