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3www.ptsc.com.vn
GENERAL OVERVIEWHistory of Establishment & Development
Partners, Clients
Organizational Structure, Management System
Business Field Organization
Resources
Development Strategies
SUSTAINABLE DEVELOPMENT REPORT
BUSINESS ACTIVITIES IN 2016Business Performance Result in 2016Report From The Board of Management
Assessment From The Board of Directors
CORPORATE GOVERNANCEActivities in 2016 and the plan of the board of Directors in 2017
Supervisory Board’s Activities in 2016 and Action plan in 2017
Remuneration and other benefits of The Board of Directors, The Supervisory Board, and The Board of Management in 2016
Ricks management
PVS SECURITIESShareholder
Investor Relations
PVS Stock
FINANCIAL REPORT
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TABLE OF CONTENTS
STOCK CODE
Domestic trading name: Tổng công ty Cổ phần Dịch vụ Kỹ thuật Dầu khí Việt NamForeign trading name: Petrovietnam Technical Services Corporation Trading name abbreviation: PTSCTax code: 0100150577Address: 5th Floor, PetroVietnam Tower, 1-5 Le Duan Street,
Ben Nghe Ward, District1, HCM City, VietNamTel: (+84).8.39102828 Fax: (+84).8.39102929Website: www.ptsc.com.vn
4 ANNUAL REPORT 2016 5www.ptsc.com.vn
Ladies and gentlemen,
In 2016, the crude oil prices strongly descended and maintained to its low level after 2 years of falling crude oil pressure which not only impacted on global oil and gas activities but also on Vietnamese oil and gas industry. Most of oil field exploration, development and production projects interior and in region have been canceled or deferred to consider financial target or wait for oil price lifting. As a result, the working volume and price in technical service market was seriously reduced, fierce competition was created by unwanted resources. Facing to the danger of going bankruptcy, series of big technical services companies had to cut down operating scale or performed their business moderately. In spite of getting great support from Petrovietnam, its’ service supply subsidiaries met lots of challenges because of declining working volume and technical service cost.
In such tough environment, we ran into difficulties to perform our business plan in 2016. For achieving our business target entrusted by the shareholders’ meeting, executive board viewed and assessed the situation, built business action plans and solutions to steer the business through difficult times and to best perform our goals. We also encouraged our staff to share difficulties with the executive board to take actions included increasing practice and reducing operating expenses in order to aim at the target. Therefore, PTSC ended FY 2016 with commendable result: total revenue was 19,293 billion dong reached 87,7%, profit before tax was 1,256 billion dong reached 104,7% (in point of fact, Brent averaging 45 USD per barrel 75% equivalent of year plant built with averaging 60 USD per barrel). Although the result is not as good as we expected, I believe that our esteemed shareholders have acknowledged our staffs’ ever - effort, our managing team’s decision and flexibility in implementing 2016 - business plan.
Along with performing interior projects effectively and safely, we also stepped up services to external and oversea market to seek work which made up for lost by oil price falling. This is a distinguished point in 2016. In international market, PTSC won bidding for projects: Danman - India; putting out housing barge to lease in Myanmar; supplying manpower to work in Brunei, Qatar… In interior market, PTSC performed these projects: manufacturing DK platform for Ministry of Defense; Long Phu 1 Power Plant; procurement packages of Nghi Son project, NPK, NH3, GPP Ca Mau, Duyen Hai – Tra Vinh Power Center… We ensured jobs for our employees and continued to maintain our stable development in tough period.
Dear Fellow Shareholders,
Oil price’s signal seems to be more positive in 2017, however, it is still another tough year. Recognizing this, a general strategic plan has been made by executive board to maintain sustainable development target and to adapt to international competition and integration, in which we focus on 4 solutions: (1) stepping up market expanding and services to external and oversea market; (2) developing manpower resources with international standards; (3) standardizing management system; (4) strictly carrying out economical policy, cutting down operational expense and reducing service cost.
In such hard time, PTSC’s management team and staff, more than ever, determined to sustain the leading advanced technology service supplier in Vietnam as well as to affirm our strong brand name in international market.
With our ever - effort, creation, activation to overcome difficulties and challenges, we steered the business through the hardest time in 2016. I am confident PTSC will well accomplish business plan assigned by shareholders’ meeting.
On behalf of PTSC’s management team and staff, I would like to express my sincere thanks to our Parent Company - Petrovietnam, fellow shareholders, esteemed partners and clients for your contribution, belief and support during what has been a very difficult year in the oil and gas industry and we are hoping for your continued support in the coming year.
ALONG WITH PERFORMING INTERIOR PROJECTS EFFECTIVELY AND SAFELY, WE ALSO STEPPED UP SERVICES TO EXTERNAL AND OVERSEA MARKET TO SEEK WORK WHICH MADE UP FOR LOST BY OIL PRICE FALLING. THIS IS A DISTINGUISHED POINT IN 2016
CHAIRMAN OF BOARD OF DIRECTORS
Thai Quoc Hiep
MESSAGE FROMCHAIRMAN
7www.ptsc.com.vn6 ANNUAL REPORT 2016
PORT & SUPPLY BASE
OFFSHORE SUPPORT VESSELS
EPCI FOR OFFSHORE FACILITIES
BUSINESS FIELDS
INSTALLATION, OPERATION AND MAINTENANCE OFFSHORE FACILITIES
FSO/FPSO
EPC FOR INDUSTRIAL, PLANTS
SEISMIC, GEO, SURVEY AND ROV
8 ANNUAL REPORT 2016 9www.ptsc.com.vn
History of Establishment & Development
Partners, Clients
Organizational Structure, Management System
Business Field Organization
Resources
Development Strategies
GENERAL OVERVIEW
10 ANNUAL REPORT 2016 11www.ptsc.com.vn
• 09/02/1993: Foundation of Petroleum Technical Services Company (PTSC) by merg-ing 2 companies PSC & GPTS. It is the unique government business enterprise supplies oil and gas technical services with the initial core business: offshore support vessels; port and supply base and technical manpower supply for oil and gas contractors.
• Separation of: Parts of Hotel services from PTSC’s core business and found PetroSetco, Offshore Technical Work-shop & Drilling Team from PTSC Marine and found PetroVi-etnam Drilling (PVD).
• Developing fleet of offshore support vessels and expand-ing PTSC Vung Tau Supply base.
• Successfully performing accommodation block LQ-CPC 99 for Vietsopetro, laying the foundation of strong devel-oping oil and gas mechanical fabrication and construction service.
• Performing O&M contract for Dinh Co Gas Processing Plant, 370 km 2 phase gas pipeline and Lan Tay Tech-nological Platform which set foundation of O&M services.
• Signing shareholding agreement of investment in FPSO Ruby Princess by and between PTSC, PVI and PVFC, begin-ning of a potential service, FSO/FPSO.
1993 1994 - 2005
HISTORY OF ESTABLISHMENT & DEVELOPMENT
• 2006: Implementing equitization process, successfully offered IPO stock to public.
• 01/01/2007: Officially operating busi-ness as joint stock company model.
• Officially notice of PTSC’s stock in HNX with stock code PVS.
• Operating business under joint stock com-pany structure and steering the business in the form of Parent company– Affiliated com-panies in which Parent company directly accomplished core business by transferring Key subsidiaries back to PetroVietnam Tech-nical Services Corporation as dependent companies.
• Restructuring business by transferring petro-leum trading enterprises to PV Oil in order to concentrate on core business.
• Joining with MISC to invest in FSO Orkid and FPSO Ruby, affirming ability in FSO/FPSO field.
• 2010:
- Being awarded the title of “Hero of Labor in the innovation-time” granted by Vietnamese Party and Government.
- The first time PTSC’s turnover has ever reached USD 1 billion.
- Initial public offering to increase charter capital up to 2,978 billion VND.
• Investing in the first seismic survey vessel - 2D with ROV units, GEO vessel, improved competitive ability in marking high technol-ogy services - seismic survey, GEO Survey and Subsea Services.
• Participating in main contractor consortium for Long Phu Power Plant 1, affirming ability in performing EPC industry and plant.
2006 - 2010
12 ANNUAL REPORT 2016 13www.ptsc.com.vn
• Organizing the 20th year anniversary ceremo-ny “20 years of building and firm development” (09/02/1993-09/02/2013 and the first Grade La-bor Medal Granting ceremony.
• The first time revenue exceeded 30,000 bilion VND, profit exceeded 2,000 VND in 2014.Completing the charter capital increase up to 4,467 billion VND.
• Joining with CGGV to supply and operate seismic survey service 2D, 3D, gradually mastering technology in 3D, 4D seismic survey.
• Joining with Yinson to invest in PTSC FSO Bien Đong 01 and FPSO Lam Son which led PTSC to master building and operating FSO/FPSO and to become the leading company in supply, management, operation and maintenance FSO/FPSO in Vietnam and region.
• EPCI performing ability and competitive ability in oil and gas mechanical in international market was continued to affirm and improved by winning Interna-tional competitive bidding and successfully performed projects: HRD Platform; Maharaja Lela South (MLS) in Brunei for Total E&P; Dai Hung Disconnect.
• Receiving the award:Vietnam Gold Star for 7 times in succession; Vietnam Value for 4 times in succession; Top 100 Vietnam Brands; Top 10 Golden Star Award of typical social responsibility and PTSC was one of two big service enterprises given Silver prize for the award National Quality Awardgiven by the Prime Min-ister.
• Implemented drastically and successfully organization restructure project in the period of 2011-2015: con-solidated administrative document system; completed and applied competitive ability project; completed withdrawal target pursuant to organization restructure project.
• Many large scale industrial projects were won and have been well performed such as: Fertilizer Plant pro-ject NPK; Amoniac workshop Expanding project NH3 from PVFCCo investor; Ca Mai Gas Treatment Plant from PVGAS investor All of the above achievements have proved PTSC’s prestige and ability to implement business development strategy in onshore industrial pro-jects.
2011 - 2015
• Receiving the award Vietnam Value for the 5th time in succession.
• Continuing control business stably in tough environment of oil crisis condition.
• Implementing solution system and innovation; cutting down operation expense; improving ability, competitive ability, especially technical, engineering, managing ability; stepping up activities in science and technology, invention, innovation; expanding to develop industrial service market and supply services to international market.
• Performing industrial projects in safety, environmental protection, quality, rate of progress and meeting clients’ demand these following projects: Long Phu Power Plant 1, Bidding packages B2, SMP9A of Nghi Son Refinery Plant Project, NPK, NH3, GPP Ca Mau, port dredging project for Duyen Hai - Tra Vinh Power Center…in which NPK/NH3 projects reached 1,000,000 hours in safety recorded by investors and related sides.
• Launching, transporting, installing PIP Platform Module 1 and Module 2 of Su Tu Trang development project - stage 1 on September 5th, 2016. STTFFD-P1 successfully launched which continued affirm PTSC’s prestige and leading brand in field of EPCI For Offshore Facilities with high quality service in Vietnam and region.
• Winning bidding and signing contract for supplying disconnection FMB platform for Technip in Quata and HUC Su Tu Trang.
2016
HISTORY OF ESTABLISHMENT & DEVELOPMENT
14 ANNUAL REPORT 2016 15www.ptsc.com.vn
PARTNERS, CLIENTS
PTSC IS ALWAYS THE BEST CHOICE FOR CLIENTS
16 ANNUAL REPORT 2016 17www.ptsc.com.vn
MANAGE-MENT BOARD
PLANNING AND INVESTMENT
DIVISION
FINANCIAL AND ACCOUNTING
DIVISION
HUMAN RESOURCES
DIVISION
SHAREHOLDERS’ MEETING
BOARD OF DIRECTORS
BRANCHES
PTSC Marine
PTSC Da Nang
PTSC Supply Base
PTSC Power
PTSC Hanoi
PTSC E & C
GENERAL ADMINISTRATION
DIVISION
ORGANIZATIONAL STRUCTURE
Malaysia Vietnam Offshore Floating Terminal (VOFT)
PTSC Asia Pacific Joint-Venture
Company (PTSC Asia Pacific)
PTSC South East Asia Joint-venture Company
(PTSC SEA)
Malaysia Vietnam Offshore Terminal Limited (MVOT)
RongDoi Joint Venture Company (RongDoi
MV 12)
Petrovietnam Marine Shipyard
Joint Stock Company
(PV Shipyard)
BOARD OF SUPERVISORS
HSEQ DIVISION INDUSTRIAL DIVISION
TECHNICAL & OPERATION
DIVISION
COMMERCIAL DIVISION
PTSC Geos and Subsea Services Company Ltd (PTSC G&S)
SUBSIDIARIESJOINT VENTURE COMPANIES
PTSC Mechanical & Construction Limited
Company (PTSC M&C)
Petro Hotel Company Ltd ( PTSC
Petro Hotel)
PTSC Thanh Hoa Port Joint Stock
Company (PTSC Thanh Hoa)
PTSC Dinh Vu Petroleum Services Port Joint Stock Company
(PTSC Dinh Vu)
PTSC Labuan Technical Service Ltd
(PTSC Labuan)
PTSC Phu My Port Joint Stock Company
(PTSC PhuMy)
PTSC Geos Survey Company Ltd (PTSC
CGGV)
PTSC Offshore Services Joint Stock Company
(POS)
PTSC Quang Ngai Joint Stock Company (PTSC QuangNgai)
PTSC Production Services Joint Stock
Company (PPS)
PV Security (PVS)
Sao Mai - Ben Dinh Petroleum
Investment Joint Stock Company (PVSB)
PTSC Quang Binh
18 ANNUAL REPORT 2016 19www.ptsc.com.vn
MANAGEMENT ORGANIZATIONBOARD OF DIRECTORS
Mr. THAI QUOC HIEPCHAIRMAN
DOB: 1958 in Ha Tinh Province, Vietnam.Qualification: Geophysical Engineer;Bachelor of Business of Management.
Mr. PHAN THANH TUNGMEMBER
DOB: 1970 in Hai Phong City, Vietnam.Qualification: Master of Engineering (Professional),
Mechanical Engineer, Bachelor of Business Management, Bachelor of English language.
Mr. DOAN MINH MANMEMBER
DOB: 1958 in Ben Tre Province, Vietnam.Qualification: Bachelor of Accounting, Bachelor of Business Administration.
Mr. PHAM VAN DUNGMEMBER
DOB: 1969 in Hai Duong Province, Vietnam.Qualification: Marine Engineer,
Economic Engineer.
Ms. NGUYEN THANH HUONGMEMBER
DOB: 1961 inHa Noi, Vietnam.Qualification: Master of Economy, Electrical Engineer.
Mr. NGUYEN VAN MAUMEMBER
DOB: 1970 in Hai Duong Province, Vietnam.Qualification: Master of Business Administration, Bachelor of Financial and Accounting.
Mr. DO QUOC HOANMEMBER
BO:1969 in Hai Phong City, Vietnam.Qualification: Master of Economy,
Engineer of Maritime Transportation, Engineer of Marine Controlling.
20 ANNUAL REPORT 2016 21www.ptsc.com.vn
Mr. PHAN THANH TUNGPRESIDENT & CEO
DOB: 1970 in Hai Phong City, Vietnam.Qualification: Master of Engineering (Professional), Mechanical Engineer, Bachelor of Business Management, Bachelor of English language.
Mr. NGUYEN TRAN TOANVICE PRESIDENT
DOB: 1964 in Hai Phong City, VietnamQualification: Marine Machinery Engineer,
Bachelor of Business Aministration.
Mr. LE MANH CUONGVICE PRESIDENT
DOB: 1974 in Hai Duong City, Vietnam.Qualification: Master of Business Administration, Marine Engineer.
MANAGEMENT ORGANIZATIONMANAGEMENT BOARD
Mr. NGUYEN VAN MAUVICE PRESIDENT
DOB: 1970 in Hai Duong Province, Vietnam.Qualification: Master of Business Administration,Bachelor of Financial and Accounting.
Mr. NGUYEN HUU HAIVICE PRESIDENT
DOB: 1962 in Bac Ninh Province, Vietnam.Qualification: Engineer of Electronics and
Telecommunications, Enterprise Management Engineer.
Mr. NGUYEN XUAN CUONGVICE PRESIDENT
DOB:1977 in Ha Noi, Vietnam.Qualification: Bachelor of Financial& Accounting.
Mr. TA DUC TIENVICE PRESIDENT
DOB: 1968 in Thai Binh Province, VietnamQualification: Marine Machinery Engineer, Bachelor of Business Administration.
22 ANNUAL REPORT 2016 23www.ptsc.com.vn
Ms. HO THI OANHCHIEF OF BOARD OF SUPERVISORS
DOB: 1972 in Thai Binh Province, Vietnam.Qualification: Bachelor of Accounting.
Mr. TRIEU VAN NGHIMEMBER OF BOARD OF SUPERVISORS
DOB: 1983 in Phu Tho Province, Vietnam. Qualification: Bachelor of Economy.
Mr. NGUYEN QUANG CHANHACTING GENERAL MANAGER OF FINANCIAL AND ACCOUNTING DIVISION
DOB: 1981 in Ving Long Province, Vietnam.Qualification: Bachelor of Accounting, Bachelor of Business Administration
Ms. BUI THU HASTANDING MEMBER OF BOARD OF SUPERVISORS
DOB: 1980 in Thai Nguyen City, Vietnam.Qualification: Bachelor of Accounting
MANAGEMENT ORGANIZATIONMANAGEMENT BOARD (Continued)
MANAGEMENT ORGANIZATIONBOARD OF SUPERVISORS
OUTSTANDING AWARDS AND TITLES
TOP 50 - THE BEST ANNUAL REPORTS IN 2016
“BEST ENTERPRISES” OF EUROPEAN BUSINESS ASSOCIATE (EBA) IN 2014
HERO OF LABOR IN THE INNOVATION-TIME
INDEPENDENCE MEDAL - FIRST RATE
INDEPENDENCE MEDAL - SECOND RATE
VIETNAM VALUE IN 2016 TOP 100 - VIETNAMESE BRAND AND TOP 10 - TYPICAL ENTERPRISE
OF SOCIAL RESPONSIBILITY IN 2015
SILVER AWARD OF “NATIONAL VALUE” IN 2015
No. COMPANY NAME ADDRESSCHARTER CAPITAL
/ INVESTMENT RATIO CORE BUSINESS
BRANCH
1 Branch of PTSC - PTSC Marine 73, Road 30/4, Ward 9, VungTau, Vietna Directly under Parent Company - Management, operation and supply of service vessels.
2 Branch of PTSC - PTSC Supply Base 65A, 30/4 street Thang Nhat Ward, Vung Tau Directly under Parent Company - Management, Operation, Trading and Exploitation of PTSC
Supply Base.
3 Branch of PTSC - PTSC Da Nang No 11, 3- 2 Road, ThuanPhuoc Ward; Hai Chau District, Da Nang City
Directly under Parent Company - Management, Operation,
Trading and Exploitation of General port.
4 Branch of PTSC - PTSC Quang Binh Hon La Port, Quang Dong Commune, Quang Trach District, Quang Binh Province
Directly under Parent Company - Management, Operation,
Trading and Exploitation of General port.
5 Branch of PTSC - PTSC Power Thanh Duc Hamlet , Long Duc Commune,Long Phu District, Soc Trang Province
Directly under Parent Company -
Management and performance of Engineering, Procurement and Construction, Installation, Hook-up and Commissioning (EPCIC) of power plant projects and industrial facilities.
6 Branch of PTSC - Engineering & Construction Division
No. 45B, 30/4 Road, Ward 9, Vung Tau City, Ba Ria - Vung Tau Province
Directly under Parent Company - Management, Organization basic construction projects,
performing industrial facilities.
7 Branch of PTSC - Hanoi No. 42 Nguyen Khuyen Street, Dong Da District, Hanoi Capital
Directly under Parent Company - Performing business development, production projects and others.
SUBSIDIARIES
1 PTSC Mechanical & Construction Services Company Ltd.,
No. 31, 30/4 Street, Ward 9, Vung Tau City, Ba Ria - Vung Tau Province 628 billion VND 100% Fabrication and assembly of oil & gas facilities.
2 PTSC Geos and Subsea Services Company Ltd. No 9 - 11 Hoang Dieu Street, Ward 1, Vung Tau City 300 billion VND 100% Operation seismic survey 2D, 3D; Geophysical & seismic survey;
ROV subsea survey & repair.
24 ANNUAL REPORT 2016 25www.ptsc.com.vn
BUSINESS FIELD ORGANIZATION
BUSINESS FIELD ORGANIZATION (Continued)
No. COMPANY NAME ADDRESSCHARTER CAPITAL
/ INVESTMENT RATIO CORE BUSINESS
3 PTSC Geos Survey Company Ltd. (PTSC CGGV)
Room No. 460, PetroVietnam Tower, No. 08 Hoang Dieu, Ward 1, Vung Tau City, S.R Vietnam
1,171 billion VND 51% Provision of offshore seismic data acquisition in 2D&3D services
inside and outside Vietnam territory.
4 PTSC Quang Ngai Petroleum Services Joint Stock Company
4H, Ton Duc Thang Street, Le Hong Phong Ward, Quang Ngaiprovince 300 billion VND 95,19%
• Management, operation and supply of service vesselsManagement, Operation, Trading and Exploitation of General port• Transportation, chartering, port exploitation, ship brokerage, pe-troleum logistic base, construction of industrial and civil engineer-ing projects, installation of machinery and industrial equipment.• Fabrication, assembly, repair and maintenance oil & gas and industrial facilities
5 PTSC Offshore Services Company Joint Stock Company
Phu My Industrial Zone, Tan Thanh Dist., Ba Ria - Vung Tau Province 400 billion VND 84,95% Transportation, installation, hook-up, commissioning services for oil
and gas projects; removal and clean-up of oil and gas projects.
6 PTSC Phu My Port Joint Stock Company Phu My Industrial Zone, Tan Thanh Dist., Ba Ria - Vung Tau Province 350 billion VND 59,61% Management, Operation and Exploitation of General Port.
7 PTSC Thanh Hoa Port Joint Stock Company
Nghi Son Commune, Tinh Gia District, Thanh Hoa Province. 400 billion VND 54,69%
• Management, Operation and Exploitation of General Port• Fabrication, assembly, repair and maintenance oil & gas and industrial facilities.
8 PTSC Dinh Vu Port Joint Stock Company Dinh Vu Industry Zone, Dong Hai II Ward, Hai An District, Hai Phong City 400 billion VND 51% Management, Operation and Exploitation of General & Container
Port.
9 PTSC Production Services Joint Stock Company
6th floor PetroVIetnam Tower, 08 Hoang Dieu Str., Vung Tau City, Ba Ria – Vung Tau Province 200 billion VND 51% Management, operation and maintenance of FPSO/FSO; Provi-
sion of manpower supply services for oil and gas industry.
10 Sao Mai - Ben Dinh Petroleum Investment Joint Stock Company
No. 9-11, Hoang Dieu Street, Distric 1, Vung Tau City, Ba Ria - Vung Tau Province 500 billion VND 51% Management, Operation and Exploitation of General Port.
11 PTSC Petro Hotel Company Ltd. No. 9-11 Hoang Dieu, Ward 1, Vung Tau City, S.R Vietnam 20 billion VND 100% Provision of tourism and cartering servicesfor oil and gas companies
in the country and abroad.
26 ANNUAL REPORT 2016 27www.ptsc.com.vn
No. COMPANY NAME ADDRESSCHARTER CAPITAL
/ INVESTMENT RATIO CORE BUSINESS
12 PetroVietnam Security Services Joint Stock Company
9th Floor, Room No. 66, Lucky BuildingNo. 66 Tran Thai Tong Street, Dich Vong Ward, Cau Giay District, Ha Noi Capital
20 billion VND 51% Provision of security services.
13 PTSC Labuan Technical Service Ltd (PTSC Labuan)
Unit 3A-25, U0350, 3rd Floor, Labuan Times Square, 87007 Labuan F.T, Malaysia
572,565USD 100% Supply of service vessels for oil and gas exploitation.
JOINT - VENTURE COMPANIES
1 Vietnam Offshore Floating Terminal (VOFT)
Suite 8,05 Level 8, The Garden North Tower, Mid Valley City, Ling Karan Syed Putra 59200 Kuala Lumpur, Malaysia
54,640,000 USD 60% Investment and provision of FPSO for PCVL.
2 PTSC South East Asia Joint - Venture Company No.18, Sungel Kadult Way, Singapore 37,329,582
USD 51% Investment and provision of FSO for Bien Dong POC.
3 PTSC Asia Pacific Join - Venture Company No.18, Sungel Kadult Way, Singapore 119,996,426
USD 51% Investment and provision of FPSO for Lam Son JOC.
4 Malaysia Vietnam Offshore Terminal (MVOT)
Suite 8.05 Level 8, The Garden North Tower, Mid Valley City, Ling Karan Syed Putra 59200 Kuala Lumpur, Malaysia
35,222,268 USD 49% Investment and provision of FSO for TML.
5 RongDoi Joint Venture Company No.02, International Business Park, Unit 02-06/7The Strategy Tower, Singapore
4,716,854 USD 33% Investment and provision of FSO for KNOC.
6 Petrovietnam Marine Shipyard Joint Stock Company (PV Shipyard) 65A2, 30/4 Road, Thang Nhat Ward , Vung Tau City 595 billion VND 28,75% Fabrication, repairing, conversion oil and gas exploration,
production platform.
BUSINESS FIELD ORGANIZATION (Continued)
28 ANNUAL REPORT 2016 29www.ptsc.com.vn
31www.ptsc.com.vn30 ANNUAL REPORT 2016
RESOURCES
26 Subsidiaries and Joint venture companies domestically and internationally
8,976 Employees
100% Engineers are Vietnamese
60 EPC, EPCI projects are managed and performed
3,000 Tons of structure per year - average production carried out in
platform fabrication area
3,000,000 Tons per year - load and unload ability
01 Accommodation Barge
GENERAL RESOURCES01 Transportation Barge
02 Seismic survey vessels 2D & 3D
02 Geographic survey vessels
03 ROV
05 FSO, FPSO
08 Ports & Supply Bases
15 Offshore Support Vessels
61 Ha - fabrication area
HUMAN RESOURCES
32 ANNUAL REPORT 2016 33www.ptsc.com.vn
2,7%
37%
5,6%
33,7%
21%PostgraduateUniversityCollegeTechnical workersUnskilled workers to be trained
Qualification
RESOURCES (Continued)
PTSC ALWAYS CONSIDERS HUMAN RESOURCES AS VALUABLE PROPERTY AND A KEY TO SUCCESS AND SUSTAINABLE DEVELOPMENT.8,976
Total number of employees
Under 25From 25-35From 35-45From 45-55Over 55
10,6%
49%27%
10,9%
2,5%
Age group
MaleFemale
84%
16%
Gender
34 ANNUAL REPORT 2016 35www.ptsc.com.vn
PTSC owns and manages largest fleet of 15 high technology service vessels in Vietnam, such as Anchor Handling Tug Supply vessels (AHTS), Dynamic Positioning vessels (DP), diving support vessels, firefighting vessels, standby rescue/field support vessels, operated by experienced local and international crew members. Beside the owned current vessels, we have 05 long term leasing contracts for bareboat operating under the brand of PTSC to meet the domestic and international market demands which included:
No. NAME OF THE VESSELS CAPACITY
1 An Bang (AHTS) 7,040 HP
2 An Phong (AHTS) 7,040 HP
3 Phong Lan (AHTS) 5,300 HP
4 Phong Nha (AHTS DP1) 5,300 HP
5 Binh Minh (AHTS DP2) 5,506 HP
6 Binh An (AHTS) 8,900 HP
7 PTSC Vung Tau (AHTS DP1) 7,080 HP
8 PTSC Hai Phong (AHTS DP1) 5,220 HP
9 PTSC Thai Binh (AHTS DP2) 8,080 HP
10 PTSC Thang Long (AHTS DP2) 7,200 HP
11 PTSC Tien Phong (AHTS) 7,080 HP
12 PTSC Ngan nam TLHN - 02 (Utility towing) 3,500 HP
13 PTSC Ngan nam TLHN - 03 (Utility towing)) 4,750 HP
14 PTSC 04 (Utility towing) 2,140 HP
15 Bach Ho (Utility towing) 980 HP
MAIN RESOURCES AND FACILITIES
Marine service vessels
• AHTS: Anchor Handling Tug Supply vessels• Utility towing: Towing vessels
• DP1: Having Dynamic Positioning DP 1• DP2: Having Dynamic Positioning DP 2
15Marine service
vessels
PTSC OWNS LEADING OIL AND GAS FACILITIES IN VIETNAM. WE ARE ABLE TO SUPPLY PACKAGE OF HIGH TECHNIQUE SERVICE FOR OIL AND GAS ACTIVITIES, EPC/EPCI MAIN CONTRACTOR, MECHANICAL AND INDUSTRIAL PROJECTS. No. NAME OF FSO/FPSO CAPACITY
(Unit: Barrel) OPERATING FIELD
1 FSO Orkid 745,000 PM3 CAA
2 FPSO Ruby II 645,000 Hong Ngoc
3 FSO Bien Dong 01 350,000 Hai Thach & MocTinh
4 FPSO Lam Son 350,000 Thang Long - Dong Do
5 FSO MV12 300,000 Rong Doi
Floating storage and offloading (FSO) & floating production storage and offloading (FPSO)
RESOURCES (Continued)
36 ANNUAL REPORT 2016 37www.ptsc.com.vn
Ports & Supply Base
08PORTS
& SUPPLY BASE
From the North to the South of Vietnam
Currently, PTSC has been managing, operating and investing in a system of 08 ports & supply bases and located along the country, from the North to the South of Vietnam which fully provide logistic and port services for operating oil and gas exploration for companies, contractors in Vietnam as well as for other economy elements of the local area.
No. SUPPLY BASES / PORTS ADDRESS SCALE
1 Vung Tau Downstream Port/ PTSC Supply Base
65A, 30/4 Road, Thang Nhat Ward, Vung Tau City, Ba Ria - Vung Tau Province.
Area: 82,2 haNumber of wharf: 09Total length of wharf: 750mCapacity:+ Vessel: 10,000 DWT+ Barge: 10,000 DWTHydroelectric depth: -6,5m to -9m
2 Phu My service Port
No. 3 Road, Phu My Industrial Zone, Tan Thanh Ward, Ba Ria - Vung Tau province
Area: 26,5 haNumber of wharf: 03+ Wharf number 1: length 385m, capacity 70,000 DWT, Hydroelectric depth -10,5m.+ Wharf number 2: length 130m, capacity 1,500 DWT, Hydroelectric depth -2,7m+ Wharf number 3: length 130m, capacity 2,500 DWT, Hydroelectric depth -3,3m
3 Sao Mai Ben Dinh Port Ba Ria - Vung Tau Province Area: 163 ha
No. SUPPLY BASES / PORTS ADDRESS SCALE
4 Dung Quat Port Binh Son District - Quang Ngai Province
Area: 4,2 haNumber of wharf: 02+ Wharf number 1: length 210m, capacity 50,000 DWT, Hydroelectric depth -10m.+ Wharf number 2: length 90m, capacity 2,000 DWT, Hydroelectric depth -4,2m
5 Son Tra Port Da Nang CityArea: 10 haNumber of wharf: 01, Length: 200m, Capacity: 20,000 DWT
6 Hon La PortQuang Dong ward, Quang Trach district, Quang Binh province
Area: 8,8 haNumber of wharf: 01, length: 215m, Capacity: 10,000 DWTHydroelectric depth: -7,8m
7 Nghi Son Port Tinh Gia District, Thanh Hoa Province
Area: 35 haNumber of wharf: 02+ Wharf number 1: length 165m, capacity 20,000 DWT, Hydroelectric depth -9,5m.+ Wharf number 2: length 225m, capacity 50,000 DWT, Hydroelectric depth -12m
8 Dinh Vu Port
Dinh Vu Industrial ZoneDong Hai II Ward, Hai An District, Hai PhongCity
Area: 15,2 haNumber of wharf: 01, length: 330m, capacity: 20,000 DWT, Hydroelectric depth: -7,8m
RESOURCES (Continued)
38 ANNUAL REPORT 2016 39www.ptsc.com.vn
Facilities for fabrication and construction of oil and gas projects and industrial projects
Construction site of nearly 21 hectares, includes workshops, warehouse and modern office: construction and assembly workshop (150,000m2), canopy workshop (19,000m2), blasting and cleaning workshop (8,000m2), painting workshop (3,500m2)…
Five segments wharf with the total of 410 meters (5 sections) in length and 28 meters in width, lifting capacity from 125 tons to 1,000 tons, the water depth of 10-15 meters, load per pipe of 263-271 tons. Especially, the wharf has 3 skid ways and loading capacity up to 25,000 tons.
Many vihicles, machinery and equipment are used for oil & gas project fabrication such as: crane car of 50 tons to 550 tons, forklift, welding machines, generators, air compressors and other specialized equipment.
Mechanical fabrication and construction of offshore projects is one of the most important services of PTSC, a major contribution to PTSC’s revenue and profit. For implementing the projects, PTSC owns oil & gas projects construction site in Vung tau with the facilities, port, base, warehouse, cranes, lifting equipment and other basic machinery and equipment which always meet all the customer requirements.
The investment in facilities for transportation, hook up, installation, maintenance and repair of offshore project can meet basic demand of customers on PTSC services, the major facilities are listed as follows:
Facilities for transportation, hook up, installation, maintenance and repair of offshore projects
No. FACILITIES/ EQUIPMENT SPECIFICATION
1Accommodation Barge with 300 occupants - PTSC Offshore 01
This barge is not a self-propelled one; length 111,6 m, width 31,7m, depth 7,3m, water lever 4,5m, weight of 9,582 tons, and be equipped a barge cranewith the lifting capacity of 300 tons.
2 5000 tons barge PTSC 01Barge with capacity of 5,000 tons uses for transportation of WHP platform, jacket, and other components for offshore constructing, repairing, maintaining and renovation.
3 Mechanical and maintenance workshop
The 11,462 m² workshop with modern facilities and equipmentprovides different kind of technical services such as repair and maintenance, conversion, upgrade and manufacture up to 500 tons of structural components.
RESOURCES (Continued)
RESOURCES (Continued)
40 ANNUAL REPORT 2016 41www.ptsc.com.vn
Facilities for Seismic survey service, geological and geophysical survey service, and subsea services
Seismic survey service, geological and geophysical survey service, and subsea services using Remote Operated Vehicle (ROV) are high and complex technology services with providing, management and operation of 2D and 3D seismic vessels, geological survey vessels, supplying and operation of ROV and other specialized survey vehicles. PTSC is dominating and controlling a Single-member limited liability company and a Joint Venture with relatively complete resources and facilities to perform surveying tasks in different sea areas on continental shelf of Vietnam and other regions in the world.
No. FACILITIES AND EQUIPMENT SPECIFICATIONS
1 Seismic survey vessel2D - Binh Minh 02
Implementing seismic survey with 2D technology on continental shelf ofevery sea areas.
2 Seismic survey vessel3D - Amadeus
Implementing seismic survey with 3D technology on continental shelf ofevery sea areas.
3 Geophysical survey vessel -PTSC Surveyor
Capable of drilling for geological surveys at the water levels from 7m to 300m and performing geological surveys at the water levels from 7m to 500m.
4 Survey Vessel - PTSC Researcher
Capable of performing geological surveys at the water level up to 1000m and oceanographic surveys in different sea areas on continental shelf of Vietnam and other local region.
5 Oil & Gas 105 vessel 1,600 HP vessel assists survey diving work.
6 Survey Vehicles ROV Observation (02 unit)
ROV Panther Plus 911 and ROV Panther Plus 954 are used for taking surveys and repairing subsea works. The vehicles can go as deep as 2000m underwater.
7 Survey Vehicle ROV Work Class (01)
ROV Quasar Compact 007 is used for taking surveys and repairing subsea works. The vehicle can go as deep as 2000m underwater.
Development viewpoint
DEVELOPMENT STRATEGIES
Objectives for the period 2016 - 2020In long term: maintaining its objective of becoming a strong corporation with reputable trademark nationwide and worldwide in the core services: oil and gas technical services, surveys, marine services, industrial projects, in which the oil and gas technical services will play the key and fundamental role. PTSC looks to become a prestigious and leading industrial and oil & gas technical service provider in the Southeast Asian region.In short and medium term: Controlling business stably in tough environment of oil crisis condition; taking advantages of every investment opportunity to improve ability and wait for oil prize lifting. Striving for rate of profit before tax/charter capital of Mother company to reach 10% per year.
VisionBecoming an oil and gas technical service supplier, robust and competitive EPCI/EPC international contractor for industrial, plants with production and service filling with content of intelligence, high value added.
Stable and sustainable development; maintaining a close connection between business operation and environmental protection and national security, utilizing the advantage of being a member of Vietnam National Oil and Gas Group.Maintaining a close cooperation with partners oil and gas industry to exploit and utilize the general resources.Creating joint ventures, affiliates with local and foreign companies to reduce competitions and direct business confrontation; gradually obtain the technology transfer, heading towards mastering the know-how to become the local market leader and expand to overseas markets.
45www.ptsc.com.vn44 ANNUAL REPORT 2016
TO MAINTAIN STABLE AND SUSTAINABLE DEVELOPMENT, DEDICATE BENEFIT FOR PTSC’S LABOURER AND RELATED SIDES, PTSC DEFINED AGAIN THE DEVELOPMENT TARGETS IN 2016 ARE AS FOLLOWS:
BUILDING, APPLYING THROUGH SYSTEM OF
SOLUTIONS TO DEVELOP RESOURCES AND BUSINESS.
DEVELOPING PROFESSIONAL WORKING ENVIRONMENT, HUMAN RESOURCES WITH HIGH QUALIFICATION AND
INTERNATIONAL LEVEL.
DEVELOPING BUSINESS CONNECTED WITH ENVIRONMENTAL PROTECTION AND
COMMUNITY, SOCIETY RESPONSIBILITY.
SUSTAINABLE DEVELOPMENT REPORT
MESSAGE OF SUSTAINABLE DEVELOPMENTThe year 2016 marked acknowledged effort of PTSC’s leadership and staff to overcome difficulties in the context that oil and gas industry had to face series of uneasy challenges created by the dramatic drop in oil prices. In such tough environment, PTSC commits to sustainable development target: “ Connecting resources and business development to environment, community and society development. This is PTSC’s culture character inherited, reserved and developed by PTSC’s generation of labourer throughout sustainable development stage.
With positive signal in the coming year, the effort of PTSC’s leadership and staff, the support of esteemed shareholders, partners and clients, we commit to perform green, sustainable development as well as to maximize benefit value for related sides, community and society.
BUILDING, APPLYING THROUGH SYSTEM OF SOLUTIONS TO DEVELOP RESOURCES AND BUSINESS
PTSC’S CERTIFICATE OF SUSTAINABLE DEVELOPMENT COMPLYING WITH INTERNATIONAL STANDARD
In 2016, we economized on 557,201 million VND, reached 101% of the year economy plan.
SOLUTIONS OF CUTTING DOWN OPERATION EXPENSE AND REDUCING SERVICE COST:
Economizing on management
expense
Economizing on materials, fuel,
energy
Economizing by reducing the cost
of purchasing goods and
services
Economizing by investment activities, performance projects in safety and on rate
of progress
Economizing by self-repairing, commissioning machine and equipment
140,224Million VND
187,301Million VND
159,493Million VND
20,640 40,565Million VND Million VND
8,978Million VND
Economizing by application of science, technology, initiative, technical innovation
SOLUTIONS OF INVESTMENT:
Being affected by oil prize dropping, so our investment focused on well performing unfinished projects, researching, updating, evaluating market situation for planned projects and then made decision of canceling or investing.
In current period, PTSC clearly defines the development of internal force and business is the top target since stable development of internal force, business will create potential resources to contribute, develop society and environment. For achieving such target, PTSC has effectively built, applied the whole system of following solutions:
SUSTAINABLE DEVELOPMENT REPORT (Continued)
46 ANNUAL REPORT 2016 47www.ptsc.com.vn
SOLUTIONS OF DIVERSIFYING PRODUCTION AND SERVICE FORMS, PROMOTING RESEARCH AND DEVELOPMENT:
SOLUTIONS OF RESTRUCTURING, INNOVATING SCIENCE AND TECHNOLOGY SYSTEM, IMPROVING MANAGEMENT SYSTEM:
SOLUTIONS OF COMPREHENSIVE COMPARISON BETWEEN STATE CAPITAL ENTERPRISES, COMPETITORS AND OTHER ENTERPRISE FORMS:
For promoting to join in project, onshore industrial projects performance, to produce equipment, offshore and industrial system. Diversifying production and service forms, even supporting services for large and modern producers.
With the target of drastically implementing restructure, utilizing competitive ability project, applying science, technology, initiative, invention, innovation, information and technology on business activities. In 2016, PTSC has built and applied software:
Such solutions gave effect in right assessment of competitors’ ability, PTSC’s advantages and disadvantages. Therefore, PTSC could make appropriate solutions to improve competitive ability in business development and in bidding to have more business, contracts including the smallest business.
SOLUTIONS OF MARKETING, JOINT VENTURE, BUSINESS DEVELOPMENT AND EXPANDING BUSINESS TO INTERNATIONAL MARKET:
For taking advantage of strong points to maintain and hold fast current market together with stepping up business development in oil & gas and industrial area, expanding business to international market. Promoting to cooperate with domestic and foreign partners/clients to perform projects with competitive cost as well as to increase bid wining capacity and not to depend on protective policy.
• Online library, administrative information system, human resource management system, enterprise resource planning (ERP).
• Customer relation management (CRM).
• Supply chain management (SCM).
• Initiative, invention to be acknowledged: 912 in which 801 initiatives and invents were applied. Total benefit: 8,978 million VND.
Up to the date December 31st, 2016, PTSC’s human workforce reaches 8,976 people with average income of 15,500,000 VND/person/month. This is such acknowledged result of PTSC’s leadership and staff comparing such fact difficulties that we faced to.
For achieving such result and meeting the requirement of management, job, business development, international standards when doing business with international contractors as well as to be able to compete with working force in the region, PTSC applied the following personnel solutions:
In the trend of deep integration of international economy and violent competition in technical services, PTSC clearly knows that building up high technology and skillful human workforce to create advantaged competition is through training investment. In 2016, PTSC organized 12,000 training sessions participated in planned and demanded training courses with total expenses of 25 billion VND, obtained 100% of the year plan.
15,5
Million VND/person/month
average income
12,000
Training Sessions
25Billion VND
DEVELOPING PROFESSIONAL WORKING ENVIRONMENT, HUMAN RESOURCES WITH HIGH QUALIFICATION AND INTERNATIONAL LEVEL.
HUMAN RESOURCES IS ALWAYS A CRUCIAL FACTOR IN SUSTAINABLE DEVELOPMENT STRATEGY FOR ENTERPRISE. THEREFORE, FOR PTSC IN SUCH TOUGH ENVIRONMENT, DEVELOPING PROFESSIONAL WORKING ENVIRONMENT, HUMAN RESOURCES QUALITY IMPROVEMENT, LABORERS’ BENEFIT CARING, LABORERS’ POLICY AND RIGHT ENSURING CONSIDERED TO BE FIRM FOUNDATION TO OVERCOME DIFFICULTIES AND STABLY DEVELOP.
PAY, ALLOWANCE AND TRAINING POLICY
Participated training courses
Total training courses expenses
• Making payment and allowance pursuant to employee’s practical workload and result;
• Applying attractive policy for high technology and skilful human resources;
• Implementing, completing mechanism and policy; increasing reasonably and explicitly allowance and payment in the way of admitting difference.
SUSTAINABLE DEVELOPMENT REPORT (Continued)
48 ANNUAL REPORT 2016 49www.ptsc.com.vn
Along with pay and allowance policy, in order to compete in the market, PTSC s always cares employees’ social welfare policy. Depending on business result, employees can get the best welfare possible:
WELFARE POLICY
• Health care policy: All of employees can get: Health examination once per year; health and life insurance (PVI care) and employees are also supported for their relatives’ health care package from PVI.
• Social welfare: PTSC ensure social insurance, health insurance and life insurance regulations according to labor law.
• Vacation: Depending on business performance result, Employees participate in vacation program once per year.
• Other welfare policies: Employees also receive welfare on PTSC’s foundation day, on Tet and national holidays; Besides, PTSC organizes canteen to serve meal for employees with strict food safety regulation and arranges accommodation for employees participating projects.
DEVELOPING BUSINESS CONNECTED WITH ENVIRONMENTAL PROTECTION
DEVELOPING BUSINESS CONNECTED WITH ENVIRONMENTAL PROTECTION AND COMMUNITY, SOCIETY RESPONSIBILITY
Maintaining, improving and developing HSEQ system
Being a leading technical service supplier of PetroVietnam, along with developing business, PTSC always considers to maintain and to continue innovating, HSEQ management system development is a key issue in enterprise administration system. PTSC has maintained effectively systems: OHSAS 18001:2007 (Occupational, Health and Safety management System), ISO 14001:2004 (Environmental Management System) and ISO 9001: 2008 (Quality Management System) which were all certified by BSI – Bristish Standard Institution.
Aiming at creating safety working environment, drastically preventing working accident, occupational disease and losing property; not damaging and polluting environment; Ensuring to meet clients’ demands, in 2016, PTSC had following achievements:
• There was no working accident, property lost which interrupted production.
• Frequency injury and incident damaged to property/1million working hours reduced comparing to the last year.
• Environmental management was ensured to comply with the law. There was no breaking environmental protection law case.
• Performing NPK/NH3 projects for PVFCCo reached 1,000,000 hours in safety.
• Performing GPP Ca Mau project for PV Gas reached 2,500,000 hours in safety.
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Managing, utilizing effectively productive materials and energy
For specializing in oil and gas technical service supply, it is hard to calculate detailed utilization productive materials source for manufacturing products and services as other enterprises. Core productive material and energy participated in manufacturing products and services as follows:
Productive materials and energy management and utilization were strictly controlled by quality management process, technical norm, operation guiding to ensure safety as well as to minimize elimination to the environment. For reducing maximum energy consumption, we issued and implemented 138 norms of fuel and energy consumption, in which 10 new regulations and norms were issued in 2016. For operation of support vessels fleet, PTSC has been effectively applied energy management system of International Maritime Organization (IMO) and inspected, supervised, certified by Vietnam Register for effective utilization of energy.
For energy consumption, PTSC utilizes direct energy such as petrol, industrial gas and indirect energy as electrical energy for production. For water resources consumption, PTSC utilizes running water serving for everyday life and for oil and gas drilling platforms and vessels. Total quantity of water consumption is about 627,000 m3 per year. All of wastewater is collected, processed, controlled and strictly complies with current waste treatment regulation, environment protection regulation, international convention on offshore production activities before eliminating.
138norms of fuel and
energy consumption
Implemented
• All kinds of semi-finished product iron and steel, coating vanish …serving for mechanics, maintenance and repair productive equipment and materials.
• Gasoline, diesel DO, industrial gas, electric to operate equipment, machine, means serving for productive operation.
Social security activities
Throughout PTSC’s history of building and development, we always consider social security activities as one of important contents of sustainable development and business development is always connected with community and society responsibility. Along with making every effort to find solutions to face with difficulties caused by crude oil price crisis, PTSC often takes responsibility to social security. In 2016, with the total amount for supporting social security is 19 billion VND, PTSC effectively deployed social security from Petrovietnam’s assignment including:
19Billion VND
for supporting social security
DEVELOPING BUSINESS CONNECTED WITH COMMUNITY AND SOCIETY RESPONSIBILITY
• PTSC supported to build schools in Phu Yen, Thai Binh, Yen Bai; Supported for social security fund in An Giang, Kien Giang, national fund for Vietnamese children.
• Supporting for in the middle of Vietnam people who suffered from disasters and floods.
• Sponsoring for medical, education quality improvement in local areas
• Mobilizing borderless charity movement and encouraging foreign partners to support PTSC’s social security.
• Organizing blood donation “One drop of blood creating million hearts”.
• Cooperating to organize medical examination, medicine supply for poor people in Dat Do district, Ba Ria - Vung Tau province.
• Organizing programs: “Humane red envelop” in Binh Son – Quang Ngai province, Nghi Son – Thanh Hoa province.
Voluntary activities for community life, homeland protection, security and politics conservation, social order and security of PTSC Youth Union
Bringing into play PTSC’s tradition of “ The leaves protect tattered ones”, politics and union organizations together with PTSC’s staff are always enthusiastic, responsible to implement well social security and voluntary activities:Voluntary activities for community life
SUSTAINABLE DEVELOPMENT REPORT (Continued)
52 ANNUAL REPORT 2016 53www.ptsc.com.vn
Voluntary activities for homeland protection, security and politics conservation, social order and security
Implementing “Island frontier affection” and activities of heading to the Island frontier which always attracted participation of Union members. PTSC Your Union organized donation collection for army and people in Truong Sa island district and platform accommodation DK1 with total amount of 50 million VND; Visiting and giving gifts for elementary schools in Ly Son commune: An Vinh No.2, An Hai.
Organizing activities responded to International Environmental Day and Week of Beach and Island in 2016; organizing cycling tour to respond to Earth Hour Campaign; tidying up the mountain road VIBA, Nghinh Phong in Vung Tau city and clean up environment in Dung Quat, Quang Ngai province; organizing program “ Let’s clean up beaches”.
Organizing effectively propagandize education activities of environmental protection, energy saving; organizing programs: “Volunteer Saturday”, “Green Sunday”, “Tree planting on Tet holiday”; tidying up in working places, worksites, projects; maintaining activities to conserve traffic safety and order in entrance Supply Base.
Participating educational propaganda and traffic safety and order conservation activities; building up cultural lifestyle and preventing social evil.
• Taking care for whole life Ms. Nguyen Thi Danh, Vietnamese Heroic Mother’s in Binh Thuan commune, Binh Son district, Quang Ngai province.
• Organizing programs “PTSC love halo - Tet holiday for poor people”; cooperating with sub-contractors to build 1,500 m road in Long Duc commune, Long Phu district, Soc Trang province.
• Cooperating to organize program “Love Spring”; organizing Chung cake cooking competition and offering gift for poor people in Vung Tau city.
• Organizing charitable rice cooking and supplying rations to workers who have rough lives.
50Implemented
Voluntary activities of PTSC Youth Union
SUSTAINABLE DEVELOPMENT REPORT (Continued)
54 ANNUAL REPORT 2016 55www.ptsc.com.vn
Business Performance Result in 2016
Report From The Board of Management
Assessment From The Board of Directors
BUSINESS ACTIVITIESIN 2016
56 ANNUAL REPORT 2016 57www.ptsc.com.vn
Profit before taxProfit after tax
TOTAL BUSINESS PERFORMANCE RESULT IN 2016
No. DESCRIPTION UNITACTUAL
2015(A)
BUDGET 2016
(B)
ACTUAL 2016
(C)(C) VS (B) C) VS. (A)
1Total consolidated Revenue
Billion VND 23,879,4 22,000,0 19,292,6 87,7% 80,8%
2 Profit before tax
Billion VND 2,015,1 1,200,0 1,256,1 104,7% 62,3%
3 Profit after tax Billion VND 1,493,5 960,0 909,7 94,8% 60,9%
BUSINESS PERFORMANCE RESULT IN 2016
2014 2015 2016
2,544,0
1,991,2
2,015,1
1,256,11,493,5
909,7
2014 2015 2016
31,922,3
19,292,6
23,879,4
Consolidated Revenue
1,256Billion VND
Profit Before Tax19,293
Billion VND
Total Consolidated Revenue in 2016
PARENT COMPANY BUSINESS PERFORMANCE RESULT DURING FY 2016
No. DESCRIPTION UNIT ACTUAL 20135(A)
BUDGET 2016
(B)
ACTUAL 2016(C) (C) VS (B) (C) VS. (A)
1 Owner Capital Billion VND
4,467,0 4,467,0 4,467,0 100,0% 100,0%
2 Revenue and other incomes
Billion VND
13,102,7 10,500,0 10,941,7 104,2% 83,5%
3 Profit before tax Billion VND
1,066,1 800,0 621,1 77,6% 58,3%
4 Profit after tax Billion VND
951,6 730,0 618,7 84,7% 65,0%
5 Investment Billion VND
629,0 934,0 36,0 3,9% 5,7%
6 Profit after tax/ Owner Capital
% 21,3% 16,3% 13,8% 84,7% 65,0%
Profit before taxProfit after tax
2014 2015 2016
13,467,8
10,941,7
13,102,7
Parent company revenue
2014 2015 2016
1,401,0
1,199,4
1,066,1
621,1951,6
618,7
58 ANNUAL REPORT 2016
MAIN FINANCIAL RATIOS
DESCRIPTION UNIT 2015 2016
Payment quota
• Short term payment ratio time 1,62 1,56
• Quick payment ratio time 1,50 1,39
Liability structure quota
• Debt to Total Asset time 0,55 0,54
• Debt to owner capital time 1,23 1,17
Activity Analysis quota
• Inventory turnover ratio day 26,28 13,15
• Net revenue/Total asset time 0,88 0,73
Profitability Analysis Ratio
• Profit after tax/ Net Revenue % 6,39% 4,87%
• Profit after tax/ Owner capital % 13,08% 7,70%
• Profit after tax/ Total Asset % 5,65% 3,56%
• Business activity profit/net revenue % 8,28% 5,16%
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BUSINESS PERFORMANCE RESULT IN 2016 (Continued)
60 ANNUAL REPORT 2016 61www.ptsc.com.vn
REPORT FROM THE BOARD OF MANAGEMENT
REPORT FROM BOARD OF DIRECTORS
General business activities
As a technical services supplier for oil & gas contractors so we build business plan base on advantages, difficulties and opportunities in 2016 with estimate crude oil price fluctuate at average of 60 USD/barrel. But in fact, the crude oil price was only 45 USD/barrel, lower 25% than estimate price.
The crude oil price was at low level in a long time cause serious influence to PSTC business, such as: almost new projects of developing offshore oil & gas fields were delayed & postponed; the exploring & exploiting enterprises (contractors) were such unprofitable that narrowed scope of production…
In 2016, PTSC’s business activities run into difficulties caused of: oil & gas contractors strictly performed the solutions of saving costs, maximum reducing jobs as well as operating expenses, high pressure from competition of oversea contractors and private enterprise with low price services. They even supplied with unprofitable price, dumping price. Many potential service contracts were postponed or reduced price, the
real quantity was much lower than estimated quantity so that almost services of PTSC could not reach the target (with assuming oil price at 60usd/barrel).
Recognizing the hard of business activities in 2016, PTSC had found directions and carried out Implementing
CONSOLIDATED REVENUE IN YEAR 2016 REACHED 19,293 BILLION VND, CONSOLIDATED PROFIT BEFORE TAX REACHED 1,256 BILLION VND. THESE RESULTS PROVE PTSC‘S GREAT EFFORT IN PROMOTING BUSINESS ACTIVITIES, GETTING JOBS FOR NEARLY 9,000 LABOURS WHILE THE QUANTITY OF JOBS WAS EXTREMELY DECLINE.
Program, organized to perform many solutions aim to increase business activities; cut cost, saved money (cut down on salary, benefit, bonus, labor, lengthen depreciation period…) aim to minimize expenses in such difficult situation.
The result of general turnover and consolidate revenue reached 19,293 billion VND equal 87.7% year plan, decreased 19.2% y-y; profit before tax reached 1,256 billion VND equal 104.7% year plan, decreased 37.7% y-y.
Although crude oil average price in fact was lower 20% than plan, service supplying activities under pressure of decreasing price, reducing job quantities demand of clients, PTSC had been enhancing to deploy the solutions of increasing business activities, saving costs in order to gain consolidated revenue less 12% than year plan based on estimated crude oil price at 60USD/barrel; excess of profit before tax over 5% year plan. PTSC services always ensure safety, saving environment, quality, rate of progress and meet all requirements of PetroVietnam, international & domestic contractors, gains clients’ faith as well as their high appreciation.
PTSC has gained such good business results due to making progresses on all activities in year 2016, such as:
• Labor force with solidarity and initiative informed comprehensive solutions, saved cost at all divisions.
• Board of Directors encouraged labor force to try hard, show their all abilities; fortified company culture: clear, equitable, civilized.
• Initiative and innovative movements promoted with a lot of practical and effective ideas. PTSC highly appreciated initiatives of PTSC‘s member as well as consultant company and they would be popularized to all subsidiaries in order to apply in right condition and situation with high effectiveness.
• Market development activities had many conformable improvements, market analysis focused on major points combined with setting up joint venture, cooperated with domestic and international contractors, partners.
• Human resource training & developing were deployed in many forms aim to meet the demand of human resource such as updating or upgrading skill as well as knowledge so that they could control high technology services.
• Engineer, technician and science management forces had been received special care in order to develop in works and projects.
62 ANNUAL REPORT 2016 63www.ptsc.com.vn
Business activities
OFFSHORE SUPPORT VESSELS:
In 2016, because of crude oil price reducing, the contractors cut down costs so that a lot of vessel contracts were reduced the price, impacted to these vessels activities. Almost oil and gas projects were postponed or get slowdown so the demanding on this service was decreased. PTSC promoted in using existing resources, limited to use bareboat in order to reducing cost. PTSC executed service vessels with 4,950 on-hire days, decreased 19% in comparison with 2015. We met a lot of difficulties in negotiating and processing contract of supplying vessels caused big influence in business effect of this service.
Revenue of Offshore support vessels in 2016 was 2,165 billion VND, reached 70% year plan, reduced 55 % y-y.
2,165Billion VND
Revenue of Offshore support vessels in 2016, reached 70% year plan
Offshore support vessels
FPSOs/FSOs
EPCI for offshore facilities
Port & supply base
Installation, Operation & Maintenance offshore facilities
Epc for industrial plants
Seismic, GEO survey and ROV
Other services
EPCI FOR OFFSHORE FACILITIES:
PTSC continued to perform projects of EPCI for offshore facilities: Su Tu Trang Full Field Development Phase 1, Ghana FPSO, Daman - Phase 2…ensured safety, protected environment, quality, rate of progress according to clients’ demand and project effect. Particular of Daman- Phase 2 had been halted since Sep 01st, 2016 due to the main contractor Swiber did not do payment as well as supply equipment for execution. PTSC had been keeping contact with the owner ONGC aim to find out solution to finish this project.
Besides that, PTSC enhanced to promote the business development activities, approached the potential projects to maintain jobs in the near future, such as: Sao Vang – Dai Nguyet project, Ca Rong Do, Su Tu Trang FF - Phase 2, Block B…
Revenue from EPCI for offshore facilities service was 5,233 billion VND, reached 101% year plan, decreased 12% y-y.
3,625Billion VND
Revenue of this service in 2016, reached
101% year plan
FPSOs/FSOs:
PTSC carried on provision, management & operation FPSOs/FSOs safely and effectively; met clients’ demand; well performed the contracts of supplying crew for FPSOs/FSOs; continuously cooperated with relative partners; followed information from clients of FSO Yetagun in Myanmar, FPSO Ca Rong Do
Revenue of this service in 2016 was 3,625 billion VND, reached 101% year plan, decreased 3% y-y.
5,233Billion VND
Revenue of this service in 2016, reached 101%
year plan
REPORT FROM THE BOARD OF MANAGEMENT (Continued)
64 ANNUAL REPORT 2016 65www.ptsc.com.vn
EPC FOR INDUSTRIAL PLANTS:
Carrying on the projects of EPC for industrial plants includes: Long Phu 1 thermal Power Plant, B2 package, SMP9 package in Nghi Son Refinery Plant project, NPK project, NH3 project, GPP Ca Mau project, Dredging work for Channel and Habour Duyen Hai Centre Power Plant... ensured safety, protected environment, quality, rate of progress according to clients’ demand.
Safely carried on and ensuring rate of progress of the projects confirmed ability of organizing, managing and performing EPC for industrial plants projects. It also took part in effectively using material facilities, human resources in order to assume job for labors in situation of crude oil price reducing.
Project Owner Main contractor Scope of workLong Phu 1 Therma Power Plant PVN Join name of contractors
PTSC-PMEPC Long Phu 1 Therma Power Plant main contractor
NPK PVFCCo Join name of contractors TKIS-PTSC
EPC Phu My NPK Plant main contractor
NH3 PVFCCo Join name of contractors TECHNIP -PTSC
EPC NH3 Workshop of PVFCCo Plant main contractor
GPP Ca Mau PV GasJoin name of contractors Posco Engineering (PEN)-PTSC
EPC main contractor for GPP Ca Mau
Dredging work for Channel and Habour Duyen Hai Centre Power Plant
GENCO1 Join name of contractors PTSC - Phu Xuan
Package No. 8 - Dredging work for Channel (Common and Private Chanels) and Habour from -6,5m (CD) to -9,5m (CD) - Second Stage - Duyen Hai Centre Power Plant
Revenue in 2016: 5,217 billion VND, reached 106% year plan, increased 20% in comparison with 2015.
5,217Billion VND
Revenue of this service in 2016, reached
106% year plan
1,637Billion VND
Revenue of this service in 2016, reach 91%
year plan
PORTS & SUPPLY BASE:
The serious reducing demand of using services of Vung Tau Supply Base influenced to business results on port & supply base service, such as:
• Operation activities were maintained and focused on supplying service for traditional clients (included 11 main contractors and 7 service companies). However, clients’ business decreased so demand on supply base services as well as other supporting services decreased, such as: supplying material & equipment, shipping agency, supplying industrial gas, handling garbage…
• All developing field drill and exploration activities of main contractors were postponed/reduced rate of progress. In 2016, quantity of exploration drill contractor reduced 50% in comparison with 2015; drill plan was not stable; few oil-wells were drilled; time for drilling was limited. Besides that, in order to support clients, PTSC considered discounting for more than 35 clients.
General port service was operated safely and stably at such ports: Phu My, Dung Quat, Hon La (Quang Binh), Dinh Vu (Hai Phong), Nghi Son (Thanh Hoa)… Particular Son Tra port operation was unprofitable due to it was newly operated, took pressure of depreciation and high loan interest while there were not many works to do.
Revenue of this service in 2016 was 1,637 billion VND, reach 91% year plan, reduced 36% y-y.
REPORT FROM THE BOARD OF MANAGEMENT (Continued)
66 ANNUAL REPORT 2016 67www.ptsc.com.vn
INSTALLATION, OPERATION & MAINTENANCE OFFSHORE FACILITIES:
In 2016, PTSC carried on and accomplished Badamyar project - Phase 1: supplying manpower, material, equipment for Hyundai (HHI) in Myanmar got big revenue in this service. Besides that, PTSC put in the tenders and sucessed in some projects, such as: tie-in for FMB platform of Technip at Qatar, HUC Su Tu Trang…
Organized and implemented manpower supplying contracts in long term for clients: JVPC, KNOC, Cuu Long JOC, Rosneft, PVEP POC… as well as in short term for other clients. Safely operated the accommodation barge PTSC offshore 1 (on-hired 252 days, increased 77% y-y) and transportation barge PTSC 01 (on-hired 101 days, increased 3% y-y).
Revenue from this service in 2016 was 1,818 billion VND reached 101% year plan, decreased 58% y-y.
1,818Billion VND
Revenue from this service in 2016, reached 101%
year plan
613Billion VND
Revenue from this service in 2016, reached 102%
year plan
OTHER SERVICES:
Hotel service, security service has still stably developed:
• Effectively operated Petro Hotel Da Nang, Petro Hotel in Vung Tau to meet demand of hotel, conference, meetings for PetroVietnam and subsidiaries and tourist companies as well as local tourists. However, business result in 2016 decreased in comparison with 2015 becaused of saving cost policy of contractors leaded to reducing on demand of hotel service.
• Effectively and safely operated security contracts for security target, especially the major targets.
Revenue from other services in 2016 was 613 billion VND, reached 102% year plan, decreased 54% y-y.
1,648Billion VND
Revenue from this service in 2016, reached 66%
year plan
SEISMIC, GEO SURVEY AND ROV:
With situation of falling crude oil price maintained, 2D and 3D seismic survey activities were reuded and cut off considerably, almost of seismic survey projects in Vietnam as well as in region ceased leading to competitive pressure in such service. General quantity of 2D seismic survey operation in 2016 was 8,479,6 km line, decreased 42% y-y. General quantity of 3D seismic survey operation in 2016 was 1,801 km line, decreased 56% y-y. Both 2 vessels were jobless in 60% time of year effect sereously to business performance.
In 2016, Geological, geophysics survey, subsea services by ROV were reduced in quantity as well as in price. Besides, pressure from other companies in country and region caused many difficulties in these services. Total quantity of ROV on-hired days was 299, decreased 60% y-y.
Revenue from this service in 2016 was 1,648 billion VND, reached 66% year plan, decreased 32% y-y.
REPORT FROM THE BOARD OF MANAGEMENT (Continued)
68 ANNUAL REPORT 2016 69www.ptsc.com.vn
Since the crude oil prices descended to its lowest levels, PTSC’s investment activities concentrated on perform projects transited from 2015 and researched, updated, evaluated market situation for investment projects as planned and approved. Main investment activities in 2016 as follows:
• Performing investment procedure for Phu Quoc general petroleum service port. PTSC has completed the Possibility Research Report and continue to perform the next investment procedure
• Performing bidding procedure, negotiating and landing the fleet of service vessels contract for Nghi Son refinery project. Moreover, PTSC is performing the investment procedure for building 8 new service vessels as part of the contract.
• Processing the disbursement of facilities investment and procurement.
Investment result of Mother Company was 35,6 billion VND, reached 3,8 % of the year budget. Invested projects were not completed as planned in 2016 as follows:
• Delay to invest the service vessel 10,000 BHP due to the current difficult situation (invested project was 22,5 million USD in 2016).
• Not completing the disbursement of Phu Quoc service port investment project in 2016 (300 billion VND) due to updated work in process.
35,6Billion VND
Investment Performance in 2016 obtained 3,8%
of the year plan
Facilities and capital construction investment
Completing the organization structure
• Renaming Legal Division to Industry Division in order to meet the requirements of business managing, improve the human resources, complete the organization structure and expand business activities
• Establishing PTSC Labuan Limited Company in Malaysia in order to supply service vessels for operating activities in overseas.
Reforming internal regulations
• Reforming regulation and internal administration regulation towards devolving and jurisdictional defining organizational structure of each devision.
• Consolidating and applying the system of regulations for Technology, Inventions and Innovations in order to improve abilities and creation of employees
• Improving the application of IT in PTSC’s business operations and enterprise management towards building softwares such as e-library, work and information management, human resources, ERP, CRM, SCM,...
• Improving the Competitive Capacity Project in bidding process and drastically applying the inventions and innovations programe on PTSC.
• Promoting the R&D; researching the Development of Manufacture Project to improve new services and products.
Reforming the Pay and Allowance Policy
Reforming the Pay and Allowance Policy in order to create justice, competitiveness assurance, finance balance and motivation to improve labor productivity. Meanwhile, the policy is well-obeyed the official bylaw such as: Labor Law, Community Insurance Law,..with effect from 01st Jan 2016
ORGANIZATION STRUCTURE, POLICY, MANAGEMENT INNOVATIONSAdministration system and expand business activities; ensure the compact, professional and connective in each division, PTSC always focus on innovating the organization structure, policies and management system.
FACING THE PRESSURE OF FALLING CRUDE OIL PRICE AND THE TREMENDOUS IMPACT ON OIL&GAS INDUSTRY, PTSC CONCENTRATE ON COMPLETING THE MANAGEMENT STRUCTURE, REFORMING CURRENT POLICIES AND ENSURING TO RE-STRUCTURE SYSTEM TOWARD COMPACT TREND.
REPORT FROM THE BOARD OF MANAGEMENT (Continued)
70 ANNUAL REPORT 2016 71www.ptsc.com.vn
BUSINESS PLAN IN 2017Target in 2017
Consolidated financial plan in 2017
Budget for Parent Company in 2017
No. TARGET UNIT BUDGET IN 2017
1 Consolidated Revenue Billion VND 13,000
2 Profit before tax Billion VND 700
3 Profit after tax Billion VND 560
4 Taxes and amounts payable to the State budget Billion VND 470
No. TARGET UNIT BUDGET IN 2017
1 Consolidated Revenue Billion VND 7,900
2 Profit before tax Billion VND 420
3 Profit after tax Billion VND 410
4 Taxes and amounts payable to the State budget Billion VND 200
5 Dividend payout ratio (%) % 7
6 Construction Investment & facilities procurement Billion VND 1,126
The business plan made on oil price forecast of average price of 50USD/barrel in 2017
Focus tasksConcentrating on all of resources on developing business activities, esuring the high quality of oil & gas technical services, meeting the requirements of contractors, improving the business development, participating in bidding process and landing new contracts to ensure business for laborforce. Moreover, PTSC has also focused on local market and expanded the overseas markets. Building professional connection system application, promoting business trade activities and creating joint ventures, affiliates relationship which Is well-suited with the advantages of PTSC is also the most important tasks
Controlling strictly the investment activities as approval; focusing on 7 core business investment followed the market demand; improving abilities and competitive capacity in important projects such as service vessel investment, FSO Ca Rong Do, Phu Quoc general petroleum service port,...
Continuously performing the general re-structrure project in 2016-2020 period which is well-suite with the one of PVN.
Dividing budgets reasonably, developing human resources with international skills to meet requirement of the high petroleum technical services as strategic plans of PTSC.
Monitoring and raising accountability of PTSC’S representatives at other subsidiaries; enhancing the internal auditing activities; promoting the saving in managing business; reducing expences and prices to improve competitiveness; supporting subsidiaries when they get trouble in business activities.
Maintaining and developing effectively management of integrated HSEQ; promoting the research of technologies, inventions, innovations to the business operations; updating the application of IT in business management.
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REPORT FROM THE BOARD OF MANAGEMENT (Continued)
72 ANNUAL REPORT 2016 73www.ptsc.com.vn
SERVICES FUNCTION
Offshore support vesselsManaging & operating safely, effectively PTSC’s owned & hired fleet of service vessels; supplying and meeting all clients’ the demands of service vessel & security guard vessels for domestic market.
EPCI for offshore facilities - EPC for industrial, plants
Deploying effectively, safely, quality and timely the projects such as: Su Tu Trang project FFD Phase 1, Daman Phase 2 project, DK platform fabrication project for Ministry of National Defence, Long Phu 1 therma power plant project, Nghi Son refinery project, NH3 revamping - NPK plant project, GPP Ca Mau project, port dredging project of Duyen Hai – Tra Vinh power center,..PTSC continue to maitain prestige and ability in EPCI for offshore facilities and onshore industrial projetcs.
FSO/FPSOManaging & operating safely & effectively FSO Bien Dong, FPSO Lam Son, FPSO Ruby II,..,ensuring to meet the requirements of clients. Well supplying human resources for running FSO Orkid, Thai Binh VN, MV12.
Ports & Supply base
Continuously managing and operating infrastructure resouces and current facilities at Vung Tau Supply base; ensuring to meet the demand of jetty, warehouse, equipment, open storage space and office for lease..for contractors; promoting the business development; expanding markets in new services such as logictics, forwarding,..to serve for both companies inside and outside oil and gas industry in order to cover the decreasing petroleum service demand. Continuously operating safely and effectively Phu My port, Dung Quat port, Hon La port (Quang Binh, Dinh Vu port (Hai Phong), Nghi Son port (Thanh Hoa), Son Tra port (Da Nang),…
Installation, Operation and Maintenance offshore facilities
Organising to deploy safely, effectively, timely and quality transportation, installation, hook-up, commissionging, operation & maintenance oil & gas project, meeting the demand of contractors. Operating safely and effectively accomodation PTSC Offshore 1 barge and 5,000 tons PTSC-01 barge.
Seismic, GEO survey and ROV
Managing, operating safely & effectively the seismic survey vessels 2D Binh Minh 02, 3D CGGV Amadeus, PTSC Surveyor, PTSC Reseacher. Maitaining controlling ROV service which support for drilling & in water survey; expanding market for construction supporting in domestic and international.
Other servicesContinuously developing other services such as: hotel, security,..to meet the requirement of clients and ensure the growth rate followed the general strategy of PVN.
Detail tasks of each service field Solutions for effectuate plans
• Executing business re-structure, completing the managing system by regulating the human resources, improving efficiency, applying strict discipline, explicit business environment, treating the personnel according to their contribution.
• Comparing PTSC - a state - owned enterprise with private enterprises to realize the differences in input & output factors, structure, managing method, thenceforth, finding out the solutions to improve the capacity and competition of PTSC equal or better than private enterprises.
• Applying Competitive Capacity Project, Production Development Project in managing and operating
projects. Accordingly, the power was delegated to project managers, human resource was regulated flexible in each projects and treated based on their contribution in job. Besides, high service’s quality and competitive price were focused in international integration period.
• Information technology in business activities such as: e-library, information management system software, human resource management system software, Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Supply Chain Management (SCM)…
COMPLETING THE MANAGING SYSTEM / ENHANCING THE BUSINESS ADMINISTRATION
PROMOTING THE MANAGING ABILITY, ENHANCING THE BUSINESS DEVELOPMENT, SETTING UP THE PROFESSIONAL HUMAN RESOURCES AND OPTIMIZING THE OPERATING COSTS ARE THE CORE SOLUTIONS FOR DEVELOPING PTSC IN 2017.
REPORT FROM THE BOARD OF MANAGEMENT (Continued)
74 ANNUAL REPORT 2016 75www.ptsc.com.vn
ENHANCING THE BUSINESS DEVELOPMENT IN OIL AND GAS REGION, AND INDUSTRIAL PLANTS; MAINTAINING THE DOMESTIC MARKET AND DEVELOPING IN FOREIGN MARKET; PROMOTING R&D IN NEW PRODUCTS AND SERVICES.
• Reducing cost of products and services in order to have a competitive price.
• Optimizing the internal services in order to have a competitive price.
• Checking the property depreciation period, reducing the depreciation cost in accordance with current Regulation in order to have a competitive service price.
• Controlling the list of all cost, setting the improvement plan, reduction level with time and person in charge.
• Evaluating the nature of cost, the quality of human resource goes with competitive salary and current Regulation.
• Continuously updating new technology, norm system. Adjusting the flat rate based on the Competitive Capacity Project with the high production and automation.
CHECKING, APPLYING APPROPRIATE SOLUTIONS, REDUCING PRICE OF PRODUCTS AND SERVICES OF PTSC, SATISFYING THE CUSTOMERS.
• Improving professional, experienced and appropriate human resource in business development activities. Deploying the working method in order that the related information is collected and updated appropriately and effectively.
• Promoting R&D, applying Production Development Project in business activities with the aim of optimizing PTSC’s resources. Cooperating with professional domestic and foreign partners to manufacture new products and services with competitive price and independent to the Protective Policy.
• Focusing on cooperation method, diversifying all kind of product and service, supplementary product and service of considerable manufacturers from Europe, USA, Japan, Korea… (agency, selling, manufacturing, maintaining, fixing, after-sale services…)
• Taking advantage of being a member of Vietnam Oil and Gas Group with well-known trade name, workforce and know-how resources, management system…, PTSC conducted the complicated projects. Engineering capacity was manifested in PTSC’s products and services.
• Standardizing the management activities, developing work force with the international standard, to adapt to the standard of foreign partners as well as to compete with work force in region.
• Improving the policy to attract the professional Vietnamese labor in management level, O&M expert, engineering expert, captain, chief mechanic…; increasing appropriate and satisfied treatment in spite of the differences, leading to the increased effective productivity.
• Training the human resource from working level to management level, improving the professional knowledge, skill, foreign knowledge as PTSC’s developing requirement. Setting up training, re-training and internal training program appropriately, encouraging learning environment in PTSC.
• Applying Scientific Technology Regulation, Innovation, Invention in PTSC in order to encourage related business activities. Speeding up technology, innovation, information technology in business activities to increase productivity.
DEVELOPING THE HUMAN RESOURCE WITH HIGH TECHNICAL LEVEL, ENHANCING THE R&D, APPLYING TECHNOLOGY, INNOVATION, INFORMATION TECHNOLOGY IN BUSINESS ACTIVITIES IN ORDER TO INCREASING CAPACITY AND EFFECT OF LABOUR.
REPORT FROM THE BOARD OF MANAGEMENT (Continued)
76 ANNUAL REPORT 2016 77www.ptsc.com.vn
• Diversifying capital mobilization, using risk manage-ment tools in managing the mobilized capital and satis-fying the business activities ‘s requirement.
• Managing the investment in subsidiaries, branches and joint venture companies. Supervising the capital representative in subsidiaries. Internal control was reinforced accordingly to financial regulations.
• Managing the flow of money by maintaining the central account system; controlling the price of product and service, financial management, debt management, leading to the increase in competitive capacity. Maintaining the appropriate debt factor for financial safety.
CHECKING THE INVESTMENT PROJECTS, PRIORITIZING THE RESOURCE IN PROJECTS OF THE CORE BUSINESS; FOLLOWING THE MARKET CLOSELY TO CATCH UP THE GREAT OPPORTUNITIES TO INVEST AND TO INCREASE THE EFFECT IN BUSINESS ACTIVITIES
FINANCIAL STRUCTURE COMPLETION, EFFECTIVE CAPITAL MANAGEMENT
• Updating, completing rules and regulation, decentralizing internal investment to support investing activities in PTSC.
• Classifying the investment projects, prioritizing the projects of the core business. The projects which were high risk, ineffective or lack of feasible capital arrangement, were not invested.
• Supervising the projects closely accordingly to the current regulation. Economical effect must be evaluated before be invested.
• Evaluating the effect of property usage, in order to make good the shortcomings and to improve the next investment.
ASSESSMENT FROM THE BOARD OF DIRECTORS
GENERAL ASSESSMENT OF BUSSINESS PERFORMANCE IN 2016
• Reaching the plan of consolidated profit before tax and ensuring share dividend rate that assigned by the shareholder meeting. Although some of revenue and investment targets were not completed, the result we achieved was worth to acknowledge since tough impact from oil price reducing.
• Business activities were performed safely, effectively and complied with related regulations of the law. In the condition of rough traditional service market, PTSC reasonably utilized maximum available resources to successfully performed onshore industry projects, affirmed our right policy in industrial project strategy serving exterior oil and gas clients. PTSC still maintained its prestige of being a leading technical service supplier in Vietnam and region.
• PTSC’s financial position was remained stable, wholesome.
• Initiative and innovative research was deployed widely in every activity which contributed to management system upgrading, operation expense saving and competitive ability improving.
• Operation structure and management ability was more and more perfected and improved to be appropriate with structure in which Mother Company directly performs business and operates the whole core business.
• Well performed employees’ lives care and social security programs.
In 2016, PTSC continued to face to negative impact caused by oil price falling which made business result strongly reduced and caused difficult to manage and steer business toward the target that was assigned by the shareholders’ meeting while still ensured jobs, income for employees and maintained business performance to seek for opportunity to overcome tough period. Some of general results in 2016 as follows:
REPORT FROM THE BOARD OF MANAGEMENT (Continued)
78 ANNUAL REPORT 2016 79www.ptsc.com.vn
ASSESSMENT OF MANAGEMENT BOARD’S ACTIVITY
MANAGEMENT BOARD’S PERSONNEL INCLUDING 07 MEMBERS OF WHOM THE PRESIDENT & CEO AND VICE PRESIDENT ARE ALSO MEMBERS OF THE BOARD OF DIRECTORS. ALL OF THE MEMBERS HAVE QUALIFICATION, ABILITY AND EXPERIENCE OF THE OPERATION FIELD THAT THEY UNDERTAKE RELATING TO ACTIVITIES OF BUSINESS, FINANCE, PLANNING, INVESTMENT, HUMAN RESOURCES AND ADMINISTRATION.
ASSESSMENT FROM THE BOARD OF DIRECTORS (Continued)
Following up and directing to perform resolutions, decisions of the shareholders’ meeting and The Board of Directors basing on the practice. Deploying effec-tively core solutions approved by The Board of Directors.
Stepping up training and self-training to improve man-power resources in order to meet increasing demands of the market as well as clients.
Maintaining the overall payment of the market, reasonable com-pensation and benefits for em-ployees; having clear commend and reward policy; improving employees’ discipline and profes-sionalism.
Managing, operating every activity under the authority with clear assignment and arrange-ment between management hi-erarchy.
In 2016, The Board of Directors highly appreciated The Board of Management’s effort, ability and responsibility to drastically face to difficulties and challenges of economics, politics in general and of the oil and gas industry in particular in order to perform assigned duty and achieved positive result in such a rough year which shown as follows:
The achievement obtained by Management Board created stable step in performance pro-cess five year - plan of 2016-2020 and made premise for successfully implementing PTSC’s development strategy to the year 2025 and orienting to the year 2035.
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Posting transactions of entries and controlling finance clearly, conforming the law, ensuring safety and upholding source of capital and fund; processing drastically bad debt and doubt-ful debt.
All working items of the restruc-ture project was implemented well and on schedule affirmed Mother Company’s decisive role toward the whole complex in directly performing business.
Actively stepping up market de-velopment, new production and service development.
Utilizing effectively and balanc-ing reasonably current resourc-es, drastically cutting down operation expense, improving quality service, reducing service cost to meet clients’ demand and to share difficulty with the clients as well as to ensure PTSC’s long benefit.
Maintaining our position and market share in business and productivity of utilizing property since our service and production quality obtains the highest stand-ard.
Continuously stepping up initia-tive and innovation movement, applying effectively informatics technology.
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80 ANNUAL REPORT 2016 81www.ptsc.com.vn
CORPORATE GOVERNANCEActivities in 2016 and the plan of the board of Directors in 2017
Supervisory Board’s Activities in 2016 and Action plan in 2017
Remuneration and other benefits of The Board of Directors, The Supervisory Board, and The Board of Management in 2016
Risks management
82 ANNUAL REPORT 2016 83www.ptsc.com.vn
ACTIVITIES IN 2016 AND THE PLAN OF THE BOARDOF DIRECTORS IN 2017
MEMBERS AND STRUCTURE OF THE BOARD OF DIRECTOR
No. FULL NAME POSITION IN PTSC NOTES
1 Thai Quoc Hiep Chairman of the Board of Directors -
2 Phan Thanh Tung Member of the Board of Directors/ President and CEO -
3 Nguyen Van Dan Member of the Board of Directors Removed from duty since 08/11/2016
4 Doan Minh Man Member of the Board of Directors Member of the Board of Directors at PVcomBank
5 Nguyen Thanh Huong Member of the Board of Directors Removed from duty since 08/11/2016
6 Pham Van Dung Member of the Board of Directors -
7 Nguyen Van Mau Member of the Board of Directors/ Vice Preident
Orther position:Chairman of the Board of Directors at PTSC Phu My
8 Do Quoc Hoan Member of the Board of Directors Appointed from 08/11/2016
PTSC’S PERSONNEL STRUCTURE OF THE BOARD OF DIRECTORS AND INFORMATION REGARDING THE POSITIONS CURRENTLY HELD BY MEMBERS OF
THE BOARD OF DIRECTORS IN OTHER COMPANIES ARE AS FOLLOWS:
• Updating, researching new legal regulations, enterprise administration routine.
• Organizing meetings of The Board of Directors; Collecting documented opinions from members of The Board of Directors; advising implementation of decision procedure.
• Assisting to communicate with shareholders, funds and investors.
• Assisting to supervise activities of The Management Board and representatives in subsidiaries.
• Assisting to draft administrative documents and reports.
• Following, updating information in stock market and PTSC’s share.
• Managing, supplying and keeping secret information and implement other tasks assigned by The Board of Directors.
ASSISTANT DIVISION OF THE BOARD OF DIRECTORS
In 2016, Assistant Division of The Board of Directors well completed its duty to ensure the administrative operation of The Board of Directors in accordance to PTSC’s strategic trends and to ensure maximum benefits for shareholders and related sides as well as to improve enterprise administration. Secretary Division of the Board of Directors includes General Secretary Department and Internal Supervisor Department with 05 experienced members who implement the following duties:
84 ANNUAL REPORT 2016 85www.ptsc.com.vn
ACTIVITIES OF THE BOARD OF DIRECTORS IN 2016
The Board of Directors guides the Board of Managers to continue implementing the objectives set forth in the five-year plan 2016-2020 and the development strategy up to 2025 with the orientation of 2035 set by the Corporation.
The Board of Directors has issued a decision to establish PTSC Labuan in Malaysia to maintain and develop the long-term business performance of the manufacturing corporation in the foreign market and just enhance the development of the product/ service granted to the shore industry.
The Board of Directors has directed the Board of Managers to review and finalize the Report on Researching Investment in Construction of Phu Quoc Apartment - Phase I and Report on Researching Investment Projects and Business Teams Coasts of Nghi Son Petroleum Refinery riverside to ensure that the performance of the two projects is at the highest level.
The Board of Directors has requested the board of Managers resources for standard jobs the related project to the state of the State Warehouse, contain and export crude raw materials (FPSO) of Red Dragon fish - the key project in 2017 of total.
Basing on the approval for investment plan in 2016, the Board of Directors closely supervised investment activities of Parent Company and its subsidiaries.
GUIDELINE OF FORMING THE
CORPORATION DEVELOPMENT’S
STRATEGY
GUIDELINE OF INVESTMENT PLAN
“IN EXECUTION OF THE TASKS OF THE AGENDA OF COMMITTEE IN THE YEAR 2016, THE BOARD OF DIRECTORS HAS IMPLEMENTED AND COMPLETED THE CONTENT DESCRIBED IN THE YEAR-WORK PROGRAM:
In respect of building and issuing internal document manangement is considered as important means in management and operation activitiy, in order to define the responsibility for the browser, coordinate method, resource utilization, the Board of Directors guided to complete document management system as follows:
• After PTSC’s new Regulation was approved in the shareholders’ meeting 2016, The Board of Directors guided assisted division completed and issued PTSC’s Regulation, checked the content of regulations related to arrange authority in accordance with new Regulations.
• The Board of Directors has promulgated the Science and Technology Policy System, Innovation andI nitiative to ensure that the Corporation’s activities in research, development, application of science and technology, inventions and innovations are strictly adhered to the current regulations and the highest utilization of the resources of the Corporation.
• In order to enhance the management and evaluation of the Corporation’s representatives in the units, the Board of Directors issued the regulation on the assessment of the fulfillment of the representative’s duties. In addition, in order to create favorable conditions for the representatives to fulfill their functions and tasks in ensuring the efficient management, preservation of capital and capital development of the Corporation, creating a prerequisite for the sustainable development, the Board of Directors has issued a resolution approving the signing of authorization documents between the Board of Directors and the representatives of the units.
• The Board of Directors has coordinated with the Standing Committee of the Party and the President & CEO to complete and promulgate the Regulation on Working Relations between the Standing Committee of the Party and the Board of Directors - President & CEO of the Corporation.
GUIDEILINE TO COMPLETE THE
DOCUMENT MANAGEMENT
SYSTEM
MAINTAINING TO GUIDE TO EFFECTIVELY
IMPLEMENT THE RESTRUCTURE OF
THE CORPORATION
The Board of Directors guided to research and develop a plan for corporationrestructure period 2016-2020 to achieve the following main objectives:
• Being a corporation with high business efficiency, optimizing available resources, attractting domestic and foreign investmentand focussing on the main business.
• Improving competitiveness, acquiring gradually, taking over technology transfer to move forward to master technology to dominate domestic market and expand overseas. Sustainable development, ensures to overcome challenges in the context of international integration, adaptable to market movements.
• Restructuring parent-subsidiary company in the direction of reinforcing and empowering the parent company. The parent company must directly participate and hold controlling stakes in key business units identified in the strategy. Improve the efficiency of using capital and assets..
ACTIVITIES IN 2016 AND THE PLAN OF THE BOARDOF DIRECTORS IN 2017 (Continued)
86 ANNUAL REPORT 2016 87www.ptsc.com.vn
The management of the Corporation is in compliance with the prevailing laws and regulations, transparent information in accordance with the standards and create confidence of shareholders, employees, state management agencies and customers.
On the basis of the 2016’s plan, the works assigned by the General Shareholders’ Meeting and actual results of implementation, The Board of Directors has evaluated the activities in 2016 as duly competent and efficient. The Board has made clear, appropriate assignment and hierarchy to timely address issues under the jurisdiction.
The arrangement of meetings of the Board of Directors, the written comments of the Board of Directors have been carried out in accordance with the law and focused on the key issues related to the direction of adopting the Resolution for Annual Shareholders’ Meeting in 2016; implementing the plan in 2016; implementing the development strategy of the Corporation; strengthening the organizational apparatus, senior personnel of the Corporation, implementation of the Restructure Corporation.
The Board of Directors’ decisions are in line with actual business situation and are an important orientation to support the Board of Directors in the management process, to coordinate well and create favorable conditions for union organizations’ operation.
REMARKS ON THE BOARD OF DIRECTORS’ ACTIVITIES
PTSC’S REPRESENTATIVE
MANAGEMENT IN OTHER
ENTERPRISES
ROUTINE TASK
The Board of Directors has directed the assistant division to periodically update the database of staff who are appointed as representatives of the Corporation at the Unit; Re-appoint the staff under the management of the Board of Directors according to regulations, timely change and add representatives to meet the management requirements of the Corporation in the units.
The Board of Directors has guided to review and supplement the relevant management documents to comply with the current regulations in order to enhance the representative’s responsibility for the preservation and development of capital of the Corporation, at the units or authorized / assigned to the management representative as well as perform other tasks at the request of the Corporation.
Apart from the annual plan activities, the Board of Directors has carried out regular tasks in accordance with their functions and tasks according to the Charter and actual arising in the course of operation of the Corporation, concretely:
• Directing the organization of the annual shareholder meeting of the Corporation and the Annual General Meeting of the Corporation.
• Supervising and directing to remove difficulties in big units and projects.
• Conducting relations with shareholders, investors.
• Promulgating resolutions related to the normal management of the Corporation’s operation: Approving the 2015 salary fund of the parent company and its member units; approving Training Plan 2016; approving the handling of outstanding debts of the Corporation; approving and issue technical norms for ships, equipment; approving the profit distribution plan 2015 for the member units ...
THE BOARD OF DIRECTORS’ ACTION PLAN IN 2017Basing on the assessment of the situation in 2017, closely following the corporation’s strategic development objectives, the Board of Directors set out the workprogram in 2017 as follows:
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Companying with the Executive Board to direct business activities, to complete production and business targets assigned by the Shareholders’Meeting.
Making decision and supervissing investment activities in an effective manner, in line with the strategy of development and implementation of capital solutions for large investment projects in the year.
Improving the management system: reviewing, updating, amending and supplementing internal regulations in accordance with the provisions of law and the situation of production and business activities of the Corporation.
Strongly promoting supervision, risk management, management evaluation, utilization and preservation capital and assets.
Consolidating and restructuring division, subsidiaries in the direction of raising their competitiveness, utilizing effectively resources conformity with actual production and business.
ACTIVITIES IN 2016 AND THE PLAN OF THE BOARDOF DIRECTORS IN 2017 (Continued)
88 ANNUAL REPORT 2016 89www.ptsc.com.vn
ACTIVITIES IN 2016
No. NAME TITLE NOTE
1 Ms. Ho Thi Oanh Head of Supervisory Board Specialized
2 Ms. Bui Thu Ha Member of Supervisory Board Specialized
3 Mr. Trieu Van Nghi Member of Supervisory Board Associated
Deputy Head of Internal Audit, PvcomBank’s Internal Audit Department
Organizational structure of supervisory board
SUPERVISORY BOARD’S ACTIVITIES IN 2016 AND ACTION PLAN IN 2017
In 2016, the Supervisory Board initiated the core undertakings as follows:
• Inspected the preservation of capital, cash flow management, operational efficiency of the business;
• Supervised the execution of the Charter, the implementation of the Resolution of the General Shareholders’ Meeting, the Board of Directors of PTSC;
• Inspected and supervised PTSC’s implementation of the Regulations, Resolutions, Decisions and Directives of PVN;
• Inspected and supervised the implementation of investment projects;
• Inspected and supervised the implementation of the restructureprojectsof the Corporation;
• Inspected and supervised the implementation of cost-cutting measures;
• Reviewed the quarterly and annually financial reports;
• Monitored the implementation of recommendation presented on the Minutes of inspection teams, audits
team working with the Parent company, Subsidiaries and Affiliates; reviewed inspection reports, internal controls of the Corporation and feedback of the Board of Managment;
• Coordinated with the Board of Directors, the Board of Management in managing equity, and supervising PTSC’s capital invested in other businesses for the purpose of capital preservation and development;
• Performed other tasks of the Supervisory Board’s 2016 action plan. Periodically review, review, make reports on inspection, supervision and evaluation of compliance with the Statute of the Corporation, resolutions of the General Meeting of Shareholders; Assessed the compliance with the provisions of the State law, the implementation and compliance with the resolutions, decisions and directives of owners related to the operation of PTSC.
The inspection and supervision of PTSC’s Supervisory Board has been conducted continuously and systematically in order to catch up with the current situation and performance of the Corporation and the Subsidiaries, so as to assist the company to realize and overcome existing shortcomings in the management, operation and internal control systems.
Executed activities
SUPERVISORY RESULTS ON THE IMPLEMENTA-TION OF 2016 ANNUAL GENERAL MEETING’S RESOLUTIONS
In 2016, members of the Supervisory Board have properly exercised their rights and obligations under the Enterprise Law.
On the basis of the operation plan approved by the General Meeting of Shareholders in Resolution 277 / NQ-DVKT- DHDCD dated 28/4/2016, the members of Supervisory Board conducted the inspection and supervision activities of PTSC Corporation.
In 2016, the Supervisory Board held 04 direct meetings and issued 01 Resolution related to the activities of the Supervisory Board: Resolution No. 207 / NQ-DVKT-BKS dated 08/4/2016 on the appointment Ms Bui Thu Ha to a fulltime member of the Supervisory Board.
Activities complies with the Law on Enterprises, Resolutions of the General Meeting of Shareholders
90 ANNUAL REPORT 2016 91www.ptsc.com.vn
Activities by assigned field
MEETING FULL NAME AGENDA
4/4
Ms. Ho Thi Oanh
Head of Supervisory Board Specialized
Have performed well the responsibilities related to the work and the field: General organization of the Board of Supervisors; to monitor and urge the implementation of the inspection and supervision activities of the Control Board; to direct, support and urge the performance of tasks assigned by members of the Control Board; approved the reports required by the Vietnam Oil and Gas Group; be in charge of tasks not assigned to other members of the Control Board under the functions, tasks and powers of the Control Board.
Executed the inspection and supervision of activities: capital preservation, cash flow management, business efficiency; implement the Charter, implement the resolution of the General Meeting of Shareholders, PTSC Board of Directors; implement the regulations, resolutions, decisions and orders of the Vietnam Oil and Gas Corporation to PTSC; situation of implementation of investment projects; restructuring work; implementation of measures to reduce costs; appraisal of quarterly and annual financial reports; implementation of the recommendations in the minutes of inspection and audit teams for the Corporation and its member units; consider the internal inspection and control reports of the Corporation and the feedback of the General Directorate of the Corporation.
4/4
Ms. Bui Thu Ha
Member of Supervisory Board Specialized
Implemented and performed well the inspection and supervision of activities: Capital preservation, cash flow management, business efficiency; implement the Charter, implement the resolution of the General Meeting of Shareholders, PTSC BOD; implement the regulations, resolutions, decisions and orders of the Vietnam Oil and Gas Corporation to PTSC; situation of implementation of investment projects; restructuring work; implement measures to reduce costs; appraisal of quarterly and annual financial reports; implement the recommendations in the minutes of inspection and audit teams for the Corporation and its member units; consider the internal inspection and control reports of the Corporation and the feedback of the General Directorate of the Corporation.
4/4
Mr. Trieu Van Nghi
Member of Supervisory Board Specialized
Well implemented and fully gave comments on the inspection and supervision of activities and domains assigned to the Control Board.
In 2016, the members of the Supervisory Board have fulfilled their responsibilities according to each assigned field, as follows:
Performing other duties of the Board of Supervisors at the request of the General Meeting of Shareholders, the Vietnam Oil and Gas Corporation and the current regulations.
SUPERVISORY BOARD’S ACTION PLAN IN 2017
Continuing inspecting and supervising the operation and management of the business according to the functions and tasks prescribed by the Enterprise Law and the Statute of PTSC; The implementation of the Regulations, resolutions and decisions of the General Meeting of Shareholders and the Board of Directors of PTSC, the implementation of resolutions, decisions and directives of the Members’ Council of Vietnam Oil and Gas Group;
Inspecting and supervise of the implementation of production, business and investment activities of the Corporation; supervise the elaboration of techno-economic norms and measures to reduce management costs and reduce production costs under directives of the Government and the Vietnam Oil and Gas Corporation;
Appraising financial statements, evaluating the performance and solvency of debts, management, preservation and development of owners’ equity; Coordinate with representatives of the capital of the Vietnam Oil and Gas Group in managing the capital of the Group in PTSC and the capital of PTSC investing in other enterprises; Supervision of capital balance and cash flow management;
Monitoring the implementation of the PTSC restructuring plan for 2016-2020;
Coordinating with the State functional agencies, internal inspection and audit teams of the Group and the Corporation in inspecting and supervising the management and activities of production and business at the units, supervise the implementation of the recommendations in the minutes of inspection and audit teams;
1
2
3
4
5
6
SUPERVISORY BOARD’S ACTIVITIES IN 2016 AND ACTION PLAN IN 2017 (Continued)
92 ANNUAL REPORT 2016
FULL NAME TITLEWAGE AND
OTHER BENEFITS(unit: VND)
THE BOARD OF DIRECTORS
Thai Quoc Hiep Chairman 1,427,617,500
Phan Thanh Tung Member/President and CEO 1,413,822,000
Nguyen Van Dan Member 872,654,000
Pham Van Dung Member 991,878,500
Nguyen Thanh Huong Member 938,518,000
Doan Minh Man Member 218,000,000
Nguyen Van Mau Member/Deputy General Director 1,290,398,500
Do Quoc Hoan Member 418,193,000
THE SUPERVISORY BOARD
Ho Thi Oanh Head of the Board 902,205,000
Bui Thu Ha Member 446,766,500
Trieu Van Nghi Member 117,000,000
THE BOARD OF MANAGEMENT
Nguyen Tran Toan Deputy General Director 1,030,398,500
Nguyen Tan Hoa Deputy General Director 279,849,000
Nguyen Huu Hai Deputy General Director 1,041,698,500
Le Manh Cuong Deputy General Director 1,117,398,500
Ta Duc Tien Deputy General Director 514,117,500
Nguyen Xuan Cuong Chief Accountant 965,640,000
Salaries, bonuses, remuneration and other benefits for each member of the Board of Directors, the Supervisory Board, the Board of Management and the managerial officials are tranparently published:
REMUNERATION AND OTHER BENEFITS OF THE BOARD OF DIRECTORS, THE SUPERVISORY BOARD, AND THE BOARD OF MANAGEMENT IN 2016
95www.ptsc.com.vn94 ANNUAL REPORT 2016
RISK MANAGEMENT
PRODUCTION SAFETY
MANAGEMENT RISK
MARKET RISK
CREDIT, EXCCHANGE RATE AND INTEREST
RATE RISK
LEGAL AND POLICY RISK
TECHNOLOGY RISK RISK OF MATERIAL
RISK MANAGEMENT
We hereby present main risks that PTSC has been facing to and how they have been managed:
RISK MANAGEMENT IS CONSIDERED AS ONE OF CRUCIAL ELEMENTS IN EFFECTIVE MANAGEMENT AND IMPORTANT ROLE IN SUSTAINABLE DEVELOPMENT. RISK MANAGEMENT WILL HELP ENTERPRISES TO ELEVATE BUSINESS EFFECTIVENESS BY IDENTIFYING, EVALUATING, PLANNING AND MINIMIZE THE POSSIBLE RISKS IN ORDER TO OPTIMIZE RESOURCES, INCREASE PROFIT AND ACHIEVE STRATEGIC TARGETS.
Possible Impacts: The oil price maintains at low level for a long period make oil exploration, production, field development, investment in oil and gas industry keep at limited extent or temporary halt, PTSC constantly faced the pressure of cutting charter rate and services from clients. Especially, the tendencies of reducing protection for state-owned enterprises, creating favourable conditions for other enterprises, international commitments (WTO, TPP…) gradually in force increase the competition not only in domestic but also in international markets.Those matters lead to the decrease in revenue as well as profit.
Risk mitigation solutions: PTSC has been performed onshore industrial projects to compensate the deficit from offshore projects, improves capability, invests productively, elevates competiveness, controls costs effectively to overcome obstacles, limit risks in 2017 and the following years.
MARKET RISK
Possible Impacts: With the business nature of supplying hi-tech services for onshore and offshore projects in oil and gas services, using large number of manpower and machinery in a harsh working environment with high intensity, there are risks of fire explosions, occupational accidents, marine safety failure or damage high-value assets of the Companyor even environment pollution to the exent of environment disasters
Risk mitigation solutions: PTSC has constantly innovated and advanced management system on Safety Health Environment and Quality toward international standards to meet production requirements; has frequent training programs to develop safe and professional working behaviors; uses tools, softwares to monitor the machinery and equipment health checks to maintain the technical safety and quality optimization for production; has insurance contracts for employees, assets, operation to compensate for unwanted losses during operation.
PRODUCTION SAFETY
MANAGEMENT RISK
96 ANNUAL REPORT 2016 97www.ptsc.com.vn
Possible Impacts:
Obsolete technologies: Non-control technology, lack of information about new technology lead to the risk of purchasing obsolete technologies which degrade competiveness, impact to the success of projects ie. Behind schedule, not meet quality requirements, increase operation, maintainance cost… Employees have no training, research in new technologies that limits the implication of new technologies as well as self-research and develop technologies.
Technology development speed: with the development pace with circle of 5 years, Technology usually gains new development steps which leads to changes, updates in standards, technical requirements. It is a cost-consuming process to follow the advanced technologies, it also impact on competiveness and leads to the risk unsynchronized system lowering project quality.
No investment or unsynchronized investment in facilities, insfrustructures, softwares… to serve business operation, no implementation of advanced technologies, inadequate of qualified spare parts, high fuel and material consumption norms, outdated standards and norms, obsolete machines with many broken-down hours… are reasons for high cost of goods sold.
Risk mitigation solutions: PTSC has focused its investment in technological innovation, alternative facilities and modern equipments with the consideration of development tendency of technology, avoiding wasting resources ie. Replace or upgrade recently implemented systems; has many training courses to equip knowledge for employees as well as help them develop their interests in researching, upgrading and implementing technologies in business operation; improve management skills, technical levels to enhance PTSC’s competitiveness, maintain the domestic market leader position as well as expand business to region and all over the world.
TECHNOLOGY RISK
Possible Impacts:Credit risk occurs when a client or partner fails to perform the contractual obligations resulting in financial loss to PTSC; besides, the increase of input interest rate from financial institutions will lead to the uplift of borrowing interest rate which represents the interest rate risk. The foreign exchange rate fluctuation in the background of unstable oil price may impact directly to business operation of the Company.
Risk mitigation solutions:
For credit risk: PTSC has implemented an appropriate credit policy for each client groups based on their business fields and locations, evaluate Feasibility study of the projects as well as control closely contract terms. On the other hand, PTSC regularly monitors credit risks to evaluate the impact and level of the impact of credit risks on the financial viability of PTSC.
For interest rate risk: PTSC surveys, approaches and arranges loan facilities from international monetory market with low cost of interest. On the other hand, PTSC participates in derivatives contracts to fix interest rate, balance the level between fixed facilities and non-fixed facilities.
CREDIT, EXCCHANGE
RATE AND INTEREST RATE
RISK
Possible Impacts:
Besides the the tendencies of reducing protection for state-owned enterprises, creating favourable conditions for other enterprises, international commitments (WTO, TPP…) gradually in force increase the market competition, PTSC has to face not only the harsh competition from international suppliers with outstanding technologies and financial ability in domestic market but also the competition from other domestic enterprises or even inner-group competition. Shortcomings in tax policy, regulations on the procedures produce obstacles for PTSC in supplying goods, services and investing oversea. The regulations of Bidding Law in oil and gas industry have not encouraged domestic production and services as well as development of special niche services.
Risk mitigation solution:
PTSC has intensely improved system of internal regulations and rules, business procedures, updated the content to ensure legal compliance, creating a solid legal basis in the management and administration, especially form up comphensive and flexible project management processes to improve project efficiency.At the same time, PTSC has also involved in the construction of law, actively contributed ideas to the relevant legislation expected to have an impact on PTSC’s activities from the draft stage. As for the strains and shortcomings in applying policies and laws, PTSC has actively proposed to PVN and other relevant authorities such as recommendations on specific mechanism of oil and gas industry, the mechanism for products or services on the main business line of PVN, the contractors tax policy for the oil and gas service provider; proposals on priority policy for services development in domestic as well as in oversea, proposals on setting up standards, technical barriers, proper protection for domestic service providers.
For Foreign exchange rate risk: This risk has been managed by PTSC’s obtaining licenses of directly receipt foreign currency payment from the State Bank of Vietnam and the balance of foreign currency inflows-outflows in order to minimize exchange rate risk by signing back-to-back contract with clients according to the amount of reciprocal foreign currency payable to suppliers and flexibly adjusting the price of goods and services if there were significant fluctuations in exchange rates.
Possible Impacts:With the possession and management of a large-scale vessel along with a number of modern facilities, diverse equipment and on-going machinery projects, the amount of fuel and material consumption serving for the fabrication, operation, repair and annual maintenance of PTSC is immense. Any fluctuation in fuel and material prices will directly affect the outcome of PTSC’s business activities.
Risk mitigation solutions: PTSC has managed these risks by contracting with clients with a term allowing for flexible contract price adjustments when there is a substantial fluctuation in the price of materials
RISK OF MATERIAL
LEGAL AND POLICY RISK
RISK MANAGEMENT (Continued)
100 ANNUAL REPORT 2016 101www.ptsc.com.vn
SHAREHOLDER STRUCTURE
MAJOR SHAREHOLDERS
No. NAME NUMBER OF SHARES OWNERSHIP RATIO
1 Vietnam Oil& Gas Group 229,500,000 51.38%
2 Dragon Capital Group Funds 35,270,450 7.89%
3 VinaCapital Corporate Finance Vietnam-Representing for related Investment Funds 23,617,422 5.29%
4 VietinBank Capital 12,013,400 2.69%
(Data collected as at March 21st 2017)
27.1%
0.40%
14.3%
58.2%
Vietnam organizations
Vietnam individuals
Foreign individuals
Foreign organizations
SHAREHOLDER
INTERNAL STOCKHOLDERS LIST AND STOCK CHANGES IN PERIOD
No. NAME POSITION CURRENT HOLDING
TRANSACTION IN THE PERIOD NOTE
SELL BUY
1 Thai Quoc Hiep Chairman of the Board of Directors 357,233 - -
2 Phan Thanh TungMember of the Board of Directors/ President
45,375 - -
3 Nguyen Van Dan Member of the Board of Directors 6,956 - - Resigned from
November 8th, 2016
4 Pham Van Dung Member of the Board of Directors 1,295 - -
5 Nguyen Van MauMember of the Board of Directors/ Vice President
40,000 - -
6 Nguyen Thanh Huong Member of the Board of Directors - - - Resigned from
December 1st, 2016
7 Do Quoc Hoan Member of the Board of Directors 10,680 Appointed from
November 8th, 2016
8 Ho Thi Oanh Head of Board of Supervisors 87 - -
9 Bui Thu Ha Member of Board of Supervisors - - -
10 Trieu Van Nghi Member of Board of Supervisors 172 - -
11 Nguyen Tan Hoa Vice President 219 - - Resigned from March 1st, 2016
12 Nguyen Tran Toan Vice President 3,546 - -
13 Le Manh Cuong Vice President 51,799 - -
14 Nguyen Huu Hai Vice President 51,069 - -
15 Ta Duc Tien Vice President 13,830 - - Appointed from March 15th, 2016
16 Nguyen Xuan Cuong Vice President 18 - -
17 Nguyen Duc Thuy Announcer - - -
(Data collected as at March 21st, 2017)
102 ANNUAL REPORT 2016 103www.ptsc.com.vn
TRANSACTION CONTRACT WITH THE CORPORATION’S INTERNAL STOCKHOLDERS
Based on the regulations of the corporation, the integrity responsibility and the prevention of interest conflicts are defined as below:
The member of the Board of Director, Board of Supervisors, CEO and other members of Board of Management are not permitted to use good business chances for the Corporation due to personal interest; as well as are not allowed to use confidential information, gained from their job position, for their own interest or for other organizations and individuals’ interest.
The member of the Board of Director, Board of Supervisors, CEO and other members of Board of Management take the responsibility of informing about all of their own interest conflicting with The corporation’s
interest, which they may receive through the legal entities, the transactions or other individuals.
The Corporation does not issue loan facilities or guarantees for The member of the Board of Director, Board of Supervisors, CEO, other members of Board of Management and individuals related to those mentioned above members or legal entity which those members have financial interest with; except that Shareholders’ Meeting reach to an agreement on those loan facilities or guarantees.
In 2016, there was no transaction between the Corporation and the member of the Board of Director, Board of Supervisors and Board of Management.
No. DATE EVENT
1 March 23rd, 2016 Fixing shareholder list attending Shareholders’ annual meeting 2016
2 April 28th, 2016 Organizing Shareholders’ annual meeting 2016
3 July 22nd, 2016 Fixing shareholder list receiving dividends of 2015 by cash (12%)
4 December 07th, 2016 Fixing shareholder list receiving dividends of 2016 by cash in advance (5%)
Enhancement of communication: In 2016, in addition to the usual meetings with Investors in order to provide information and updates on the business operation of PTSC every quarter, PTSC is honoured to receive a great number of Investors from top tier securities companies, fund management companies of Vietnam and foreign fund management at the Headquarter of PTSC. Besides, PTSC regularly responds to matters related to the rights and benefits of the shareholders, provides sufficient information in accordance with the current regulations on the business operations of PTSC via email, telephones etc.
Transparency of information: In order to ensure the information declared to the shareholders is transparent and timely communicated, PTSC has applied a variety of information technology solutions such as: using the information declaration system via CIMS of the Ho Chi Minh City Stock Exchange, uploading and updating the information publicized on the official website of PTSC, and using the information declaration service on the stock market – Ezsearch. At the same time, the Corporation cooperates with securities companies, media in order to update and provide sufficient information transparently about the current regulations on the business operations of PTSC.
Protection of the shareholders’ rights and benefits: To achieve the aim of the Corporation that “Ensuring the highest protection of shareholders’ rights and benefits, equal treatment between major and minor shareholders, between foreign and Vietnam shareholders, between internal and external shareholders”, the department in charge of shareholder relationship at PTSC is always working with the highest responsibility, meeting highest requirements, flexibly and quickly dealing with all of the requests from stockholders about the execution of shareholders’ rights such as: the registration of stock ownership, share transfer, procuring additional shares issued, accessing the information related to the operation of the Corporation, the rights of attending and voting at the shareholders’ meetings, granting authority to obtain the shareholder’s rights, receiving the profits from the Corporation… Currently, the shareholder relationship department of PTSC is carrying out research on electronic vote (e-voting) to bring advantages to shareholders on executing the voting rights about the issues belonging to the jurisdiction of the shareholders’ meeting in the future.
“ENHANCEMENT OF COMMUNICATION, ASSURANCE OF INFORMATION TRANSPARENCY, PROTECTION OF THE SHAREHOLDERS’ RIGHTS AND BENEFITS”
EVENTS RELATING TO SHAREHOLDERS’ INTERESTS
INVESTOR RELATIONS
THE ENHANCEMENT OF COMMUNICATION, ASSURANCE OF THE TRANSPARENCY OF INFORMATION AND HIGHEST PROTECTION OF SHAREHOLDERS’ RIGHTS AND BENEFITS, EQUAL TREATMENT TO ALL OF SHAREHOLDERS CREATING BILATERAL RELATIONSHIP BETWEEN THE CORPORATION AND THE RELATED PARTY CONTRIBUTE TO BUILDING THE TRUST AND SUPPORT OF SHAREHOLDERS, INVESTORS WHEN IMPLEMENTING LONG-TERM STRATEGY AND EFFECTIVELY FUNDRAISING ON THE STOCKMARKET; KEEPING THE COMPANY PRESTIGE AND INCREASING ENTERPRISE VALUE THAT PTSC HAS ALWAYS AIMED TO ACHIEVE OVER THE PAST YEARS.
SHAREHOLDER (Continued)
104 ANNUAL REPORT 2016 105www.ptsc.com.vn
(Data collected as at 17 March 2017)
PVS - PRINCIPAL INFORMATION
Outstanding shares 446,700,421
Listed shares 446,700,421
Treasury shares 0
Market capitalization (billion VND) 7,817,26
Foreign room (%) 20.91%
Basic EPS (thousand VND) 2.21
P/E 8.19
Book value per share (thousand VND) 22.99
Highest price in 2016 (thousand VND) 22.10
Lowest price in 2016 (thousand VND) 12.50
PVS STOCK
HISTORY OF DIVIDEND PAYMENT
YEAR PAYMENT RATIO CUT-OFF DATE
2007 14% Mar 14th, 2008
2008 (1st payment) 10% Nov 20th, 2008
2008 (2nd payment) 5% Jun 25th, 2009
2009 20% May 12th, 2010
2010 15% Dec 13th, 2010
2011 20% May 25th, 2012
2012 (1st payment) 10% Jan 17th, 2013
2012 (2nd payment) 5% Sep 5th, 2013
2013 12% Jul 28th, 2014
2014 12% Jul 31st, 2015
2015 12% Jul 22nd, 2016
2016 (1st interim payment) 5% Dec 7th, 2016
HISTORY OF SHARE OFFER FOR INCREASING PTSC CHARTERED CAPITALYEAR DESCRIPTION QUANTITY
(share)CHARTERED CAPITAL
(VND)
2006 IPO 100,000,000 1,000,000,000,000
2008 Issuing to existing shareholders 73,803,431 1,738,034,310,000
2009 Separately issuing to strategic shareholders 25,000,000 1,988,034,310,000
2010 Issuing to existing shareholders 98,998,663 2,978,020,940,000
2012 Issuing to existing shareholders 148,898,327 4,467,004,210,000
106 ANNUAL REPORT 2016 107www.ptsc.com.vn
PVS’S RECOVERY
In the year 2016, despite the strong growth vibe from basic materials, FMCG, Pharmaceutical and the not-market-leader positions like previous years, the PTSC’s stock and Oil&Gas stocks in general put their impacts on investors. The 26-USD-bottom of oil price pulled the PVS stock price to the lowest level from 2012 (at 12,500 VND per share). After that, the growth up trend of stock price was supported by the strong recovery of international oil price and achieved the pace of 76% and won the year-record of 22,100VND per share in 18 August 2016. PVS also overcomed the most challenging event of the year – Brexit (VN-index closed the trade session panically with the downturn of 34 points equivalent to -5.47%). At the closing session, PVS fixed at 16,500 VND per share. In general, despite the macroeconomic events and unsupported information from business operation, the oil price played as the key maker to the PVS stock price. However, in the point of view of investors, PVS is considered as a “safe house” for them to avoid market significant changes.
THE STOCK MARKET OF THE YEAR 2016 CLOSED WITH JOYS FOR INVESTORS. IN A YEAR WITH MANY SIGNIFICANT EVENTS LIKE BREXIT, THE U.S PRESIDENTIAL ELECTION…, THE PRINCIPAL INDEXES OF VIETNAM STOCK MARKET ACHIEVED EXCELLENT GROWTH BEYOND THE EXPECTATION. AT 2016 CLOSING TRADE SESSION, VN-INDEX GAINED ITS 8-YEAR RECORD (688,99 POINTS, INCREASED 14.7% OVER THE PROJECTED INDEX)
The stock market starts the year of 2017 with both hopes and fears. On global perspective, the populism trend and domestic protection are getting more popular and challenge the globlisation trend which has been supported for decades. The changes in policy systems of world powers, especially trade policies and monetary systems may impact negatively on emerging markets. In Viet Nam, the business structure at significant state-owned enterprises as well as IPOs from big corporations create many choices for investors. It will lead to the bigger differentiation among stock groups.
The trend of oil price is still unpredictable when the affecting factors of oil&gas industry have no significant changes (supply variation, national reserves of top consumers, availability of alternative energies…). Therefore, the oil & gas stocks will share the rhythm of oil price. For PVS stock, optismistic signals from oil&gas services from the beginning of the year bring hopes to Shareholders and investors for a “bright” 2017.
Stock price chart
Oil price chart
PVS STOCK (Continued)
110 111www.ptsc.com.vnANNUAL REPORT 2016
STATEMENT OF THE BOARD OF MANAGEMENT
The Board of Management of PetroVietnam Technical Services Corporation (the “Parent Company”) and its subsidiaries (the Parent Company and the subsidiaries are referred to as “the Corporation”) presents this report together with the Corporation’s consolidated financial statements for the year ended 31 December 2016.
THE BOARDS OF DIRECTORS AND MANAGEMENT
Board of Directors
Board of Management
The members of the Boards of Directors and Management of the Corporation who held office during the year and to the date of this report are as follows:
Mr. Thai Quoc Hiep Chairman
Mr. Phan Thanh Tung Member
Mr. Nguyen Van Mau Member
Mr. Pham Van Dung Member
Ms. Nguyen Thanh Huong Member
Mr. Doan Minh Man Member
Mr. Do Quoc Hoan Member (appointed on 8 November 2016)
Mr. Nguyen Van Dan Member (resigned on 8 November 2016)
Mr. Phan Thanh Tung President and CEO
Mr. Nguyen Tran Toan Vice President
Mr. Nguyen Van Mau Vice President
Mr. Le Manh Cuong Vice President
Mr. Nguyen Huu Hai Vice President
Mr. Ta Duc Tien Vice President (appointed on 15 March 2016)
Mr. Nguyen Xuan Cuong Vice President (appointed on 12 January 2017)
Mr. Do Quoc Hoan Vice President (resigned on 8 November 2016)
Mr. Nguyen Tan Hoa Vice President (resigned on 1 March 2016)
BOARD OF MANAGEMENT’S STATEMENT OF RESPONSIBILITYThe Board of Management of the Corporation is responsible for preparing the consolidated financial statements, which give a true and fair view of the consolidated financial position of the Corporation as at 31 December 2016, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to financial reporting. In preparing these consolidated financial statements, the Board of Management is required to:
• Select suitable accounting policies and then apply them consistently;
• Make judgments and estimates that are reasonable and prudent;
• State whether applicable accounting principles have been followed, subject to any material departures disclosed and explained in the consolidated financial statements;
• Prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Corporation will continue in business; and
• Design and implement an effective internal control system for the purpose of properly preparing and presenting the consolidated financial statements so as to minimise errors and frauds.
The Board of Management is responsible for ensuring that proper accounting records are kept, which disclose, with reasonable accuracy at any time, the consolidated financial position of the Corporation and that the consolidated financial statements comply with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to financial reporting. The Board of Management is also responsible for safeguarding the assets of the Corporation and hence for taking reasonable steps for the prevention and detection of frauds and other irregularities.
The Board of Management confirms that the Corporation has complied with the above requirements in preparing these consolidated financial statements.
For and on behalf of the Board of Management,
Phan Thanh TungPresident and CEO17 March 2017Ho Chi Minh City, S.R. Vietnam
STATEMENT OF THE BOARD OF MANAGEMENT (Continued)
112 113www.ptsc.com.vnANNUAL REPORT 2016
INDEPENDENT AUDITORS’ REPORT
To: The Shareholders The Board of Directors and Board of Management of PetroVietnam Technical Services Corporation
No.: 607/VN1A-HN-BC
We have audited the accompanying consolidated financial statements of PetroVietnam Technical Services Corporation (the “Parent Company”) and its subsidiaries (the Parent Company and its subsidiaries are referred to as the “Corporation”) prepared on 17 March 2017 as set out from page 5 to page 46, which comprise the consolidated balance sheet as at 31 December 2016, the consolidated statements of income, consolidated cash flows for the year then ended and a summary of significant accounting policies and other explanatory information.
Board of Management’s Responsibility for the Consolidated Financial Statements
The Board of Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to financial reporting and for such internal control as the Board of Management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Corporation’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Corporation as at 31 December 2016, its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to financial reporting.
Vo Thai HoaAudit PartnerAudit Practising Registration Certificate No. 0138-2013-001-1For and on behalf ofDELOITTE VIETNAM COMPANY LIMITED17 March 2017Ho Chi Minh City, S.R. Vietnam
Dao Thai ThinhAuditorAudit Practising Registration Certificate No. 1867-2013-001-1
INDEPENDENT AUDITORS’ REPORT (Continued) No.: 607/VN1A-HN-BC
114 115www.ptsc.com.vnANNUAL REPORT 2016
CONSOLIDATED BALANCE SHEETAs at 31 December 2016
FORM B 01-DN/HNIssued under Circular No.202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance
CONSOLIDATED BALANCE SHEET (Continued)As at 31 December 2016
FORM B 01-DN/HNIssued under Circular No.202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance
ASSETS Codes Notes 31/12/2016 31/12/2015
A. CURRENT ASSETS 100 15,151,148,411,971 16,000,729,197,810
I. Cash and cash equivalents 110 5 5,883,669,671,740 7,991,387,356,724
1. Cash 111 2,646,758,096,799 3,982,903,553,183
2. Cash equivalents 112 3,236,911,574,941 4,008,483,803,541
II. Short-term financial investments 120 911,017,446,191 570,070,000,000
1. Held-to-maturity investments 123 6 911,017,446,191 570,070,000,000
III. Short-term receivables 130 6,125,027,352,428 5,725,328,822,123
1. Short-term trade receivables 131 7 4,766,279,842,961 4,229,681,576,031
2. Short-term advances to suppliers 132 346,760,133,285 475,565,519,498
3. Receivables from construction contracts under percentage of completion method
134 8 438,107,372,763 4,765,479,848
4. Short-term loan receivables 135 - 28,757,555,368
5. Other short-term receivables 136 9 667,479,061,085 1,142,556,125,176
6. Provision for short-term doubtful debts 137 (93,599,057,666) (155,997,433,798)
IV. Inventories 140 10 1,650,744,923,057 1,190,080,622,597
1. Inventories 141 1,655,953,765,876 1,195,777,537,746
2. Provision for devaluation of inventories 149 (5,208,842,819) (5,696,915,149)
V. Other short-term assets 150 580,689,018,555 523,862,396,366
1. Short-term prepayments 151 11 24,369,143,651 23,353,448,130
2. Value added tax deductibles 152 505,596,222,039 460,395,529,830
3. Taxes and other receivables from the State Budget 153 20 50,723,652,865 40,113,418,406
B. NON-CURRENT ASSETS 200 10,389,961,414,802 10,436,323,789,084
I. Long-term receivables 210 67,193,882,648 81,922,105,081
Unit: VND
The accompanying notes are an integral part of these consolidated financial statements
ASSETS Codes Notes 31/12/2016 31/12/2015
1. Long-term advances to suppliers 212 45,043,576,977 56,227,502,258
2. Other long-term receivables 216 9 22,150,305,671 25,694,602,823
II. Fixed assets 220 4,150,439,107,437 4,727,816,332,623
1. Tangible fixed assets 221 12 4,133,766,907,309 4,701,785,351,363
- Cost 222 11,927,166,182,310
11,653,416,894,534
- Accumulated depreciation 223 (7,793,399,275,001) (6,951,631,543,171)
2. Intangible assets 227 13 16,672,200,128 26,030,981,260
- Cost 228 76,843,823,475 71,167,554,725
- Accumulated amortisation 229 (60,171,623,347) (45,136,573,465)
III. Investment properties 230 14 197,541,863,907 202,277,135,763
- Cost 231 229,280,786,454 229,280,786,454
- Accumulated amortisation 232 (31,738,922,547) (27,003,650,691)
IV. Long-term assets in progress 240 15 498,672,582,913 424,420,945,500
1. Long-term work in progress 241 370,485,940,489 369,678,895,035
2. Construction in progress 242 128,186,642,424 54,742,050,465
V. Long-term financial investments 250 4,733,712,583,228 4,203,786,295,223
1. Investments in joint ventures, associates 252 16 4,707,276,291,641 4,166,493,636,903
2. Equity investments in other entities 253 17 51,030,000,000 61,030,000,000
3. Provision for impairment of long-term financial investments 254 17 (24,593,708,413) (23,737,341,680)
VI. Other long-term assets 260 742,401,394,669 796,100,974,894
1. Long-term prepayments 261 11 697,468,980,357 746,045,339,983
2. Long-term reserved spare parts 263 44,932,414,312 50,055,634,911
TOTAL ASSETS (270=100+200) 270 25,541,109,826,773 26,437,052,986,894
Unit: VND
The accompanying notes are an integral part of these consolidated financial statements
116 117www.ptsc.com.vnANNUAL REPORT 2016
Unit: VND
RESOURCES Codes Notes 31/12/2016 31/12/2015
C. LIABILITIES 300 13,788,657,616,607 14,562,178,949,277
I. Current liabilities 310 9,743,162,837,038 9,872,435,220,921
1. Short-term trade payables 311 18 4,051,838,898,443 4,355,312,301,426
2. Short-term advances from customers 312 19 1,431,502,690,033 987,427,659,341
3. Taxes and amounts payable to the State budget 313 20 128,092,850,261 175,425,464,475
4. Payables to employees 314 385,076,069,091 443,398,334,923
5. Short-term accrued expenses 315 21 2,063,212,809,649 1,779,598,558,385
6. Payables relating to construction contracts under percentage of completion method
317 8 238,298,386,212 20,520,328,878
7. Short-term unearned revenue 318 20,721,879,131 11,613,862,192
8. Other current payables 319 22 625,935,472,506 1,038,096,538,745
9. Short-term loans 320 23 432,147,165,556 684,347,404,258
10. Short-term provisions 321 62,820,128,025 83,201,867,977
11. Bonus and welfare funds 322 303,516,488,131 293,492,900,321
II. Long-term liabilities 330 4,045,494,779,569 4,689,743,728,356
1. Long-term trade payables 331 18 - 66,267,935,109
2. Long-term advances from customers 332 19 801,016,151,506 1,226,805,535,537
3. Long-term unearned revenue 336 211,887,162,632 221,204,931,276
4. Other long-term payables 337 22 204,067,385 203,242,385
5. Long-term loans 338 24 1,143,508,611,250 1,563,412,865,200
6. Deferred tax liabilities 341 25 471,285,000,292 282,883,021,027
RESOURCES Codes Notes 31/12/2016 31/12/2015
7. Long-term provisions 342 26 1,355,709,901,710 1,280,954,820,004
8. Scientific and technological development fund 343 61,883,884,794 48,011,377,818
D. EQUITY 400 11,752,452,210,166 11,874,874,037,617
I. Owners’ equity 410 27 11,752,452,210,166 11,874,874,037,617
1. Owners’ contributed capital 411 4,467,004,210,000 4,467,004,210,000
- Ordinary shares carrying voting rights 411a 4,467,004,210,000 4,467,004,210,000
2. Share premium 412 39,617,060,000 39,545,660,000
3. Investment and development fund 418 2,626,119,682,700 2,418,539,906,053
4. Retained earnings 421 3,188,956,067,975 3,326,188,546,305
- Retained earnings accumulated to the prior year end 421a 2,390,099,035,058 1,831,264,703,174
- Retained earnings of the current year 421b 798,857,032,917 1,494,923,843,131
5. Non-controlling interests 429 29 1,430,755,189,491 1,623,595,715,259
TOTAL RESOURCES (440=300+400) 440 25,541,109,826,773 26,437,052,986,894
Duong Thi Ngoc QuyPreparer
Nguyen Quang ChanhHead of Accounting Department
Phan Thanh TungPresident and CEO17 March 2017Ho Chi Minh City, S.R. Vietnam
Unit: VND
CONSOLIDATED BALANCE SHEET (Continued)As at 31 December 2016
FORM B 01-DN/HNIssued under Circular No.202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance
CONSOLIDATED BALANCE SHEET (Continued)As at 31 December 2016
FORM B 01-DN/HNIssued under Circular No.202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance
The accompanying notes are an integral part of these consolidated financial statements The accompanying notes are an integral part of these consolidated financial statements
118 119www.ptsc.com.vnANNUAL REPORT 2016
For the year ended 31 December 2016
Duong Thi Ngoc QuyPreparer
Nguyen Quang ChanhHead of Accounting Department
Phan Thanh TungPresident and CEO17 March 2017Ho Chi Minh City, S.R. Vietnam
Unit: VND
ITEMS Codes Notes 2016 2015
1. Gross revenue from goods sold and services rendered 01 31 18,682,080,522,528 23,356,897,865,989
2. Net revenue from goods sold and services rendered (10=01) 10 18,682,080,522,528 23,356,897,865,989
3. Cost of goods sold and services rendered 11 32 17,899,327,840,481 21,181,966,606,269
4. Gross profit from goods sold and services rendered (20=10-11) 20 782,752,682,047 2,174,931,259,720
5. Financial income 21 34 306,321,814,062 377,947,935,838
6. Financial expenses 22 35 159,594,948,095 378,085,339,930
- In which: Interest expense 23 55,841,878,387 70,937,160,828
7. Income from associates, joint ventures 24 36 667,105,854,738 753,186,652,840
8. Selling expenses 25 37 91,959,953,182 98,571,639,097
9. General and administration expenses 26 37 540,231,230,547 896,467,983,169 10. Operating profit (30=20+(21-22)+24-(25+26)) 30 964,394,219,023 1,932,940,886,202
11. Other income 31 38 304,151,849,725 144,558,270,036
12. Other expenses 32 39 12,410,057,984 62,419,150,229
13. Profit from other activities (40=31-32) 40 291,741,791,741 82,139,119,807
14. Profit before tax (50=30+40) 50 1,256,136,010,764 2,015,080,006,009
15. Current corporate income tax expense 51 40 157,989,589,078 350,424,712,724
16. Deferred corporate income tax expense 52 25 188,401,979,265 171,116,435,819
17. Profit after tax (60=50-51-52) 60 909,744,442,421 1,493,538,857,466
18. Profit after tax of the Parent Company 61 1,038,743,379,556 1,517,394,760,704
19. Loss after tax of non-controlling interests 62 29 (128,998,937,135) (23,855,903,238)
20. Basic earnings per share 70 41 2,122 2,915
ITEMS Codes 2016 2015
I. CASH FLOWS FROM OPERATING ACTIVITIES
1. Profit before tax 01 1,256,136,010,764 2,015,080,006,009
2. Adjustments for:
Depreciation and amortisation of fixed assets 02 870,764,893,967 904,020,669,964
Provisions 03 (7,656,739,975) 336,524,471,771
Foreign exchange loss arising from translating foreign currency items 04 39,733,506,386 45,086,595,470
Gain from investing activities 05 (897,868,661,163) (947,048,021,972)
Interest expense 06 55,841,878,387 70,937,160,828
Other adjustments 07 13,872,506,976 18,208,231,720
3. Operating profit before movements in working capital 08 1,330,823,395,342 2,442,809,113,790
Changes in receivables 09 (609,823,896,516) 2,423,557,330,327
Changes in inventories 10 (455,860,052,985) (677,968,559,417)
Changes in payables 11 56,367,184,831 (1,999,111,919,808)
Changes in prepaid expenses 12 47,560,664,105 (67,638,283,727)
Interest paid 14 (62,003,800,061) (76,563,627,232)
Corporate income tax paid 15 (206,556,951,661) (442,942,805,801)
Other cash inflows 16 403,068,550 5,546,411,696
Other cash outflows 17 (177,196,561,038) (185,478,789,954)
Net cash (used in)/generated by operating activities 20 (76,286,949,433) 1,422,208,869,874
II. CASH FLOWS FROM INVESTING ACTIVITIES
1. Acquisition and construction of fixed assets 21 (447,570,715,035) (772,995,240,381)
2. Proceeds from sale, disposal of fixed assets 22 1,037,212,560 5,598,152,126
3. Cash outflow for lending, buying debt instruments of other entities 23 (1,245,394,000,000) (867,070,000,000)
4. Cash recovered from lending, selling debt instruments of other entities 24 918,029,044,621 793,484,145,852
5. Investments in other entities and other long-term investments 25 - (38,412,998,000)
6. Cash recovered from investments in other entities 26 5,000,000,000 47,524,303,246
7. Interest earned, dividends and profits received 27 217,921,395,605 158,688,237,098
Net cash used in investing activities 30 (550,977,062,249) (673,183,400,059)
Unit: VND
FORM B 02-DN/HNIssued under Circular No.202/2014/TT-BTC
dated 22 December 2014 of the Ministry of FinanceFor the year ended 31 December 2016CONSOLIDATED CASH FLOW STATEMENT FORM B 03-DN/HN
Issued under Circular No.202/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance
CONSOLIDATED INCOME STATEMENT
The accompanying notes are an integral part of these consolidated financial statements The accompanying notes are an integral part of these consolidated financial statements
120 121www.ptsc.com.vnANNUAL REPORT 2016
ITEMS Codes 2016 2015
III. CASH FLOWS FROM FINANCING ACTIVITIES
1. Proceeds from borrowings 33 59,165,312,670 358,910,191,041
2. Repayment of borrowings 34 (735,067,925,898) (786,478,291,675)
3. Dividends paid 36 (808,800,203,900) (578,772,068,210)
Net cash used in financing activities 40 (1,484,702,817,128) (1,006,340,168,844)
Net decrease in cash (50=20+30+40) 50 (2,111,966,828,810) (257,314,699,029)
Cash and cash equivalents at the beginning of the year 60 7,991,387,356,724 8,194,248,685,277
Effects of changes in foreign exchange rates 61 4,249,143,826 54,453,370,476
Cash and cash equivalents at the end of the year (70=50+60+61) 70 5,883,669,671,740 7,991,387,356,724
Duong Thi Ngoc QuyPreparer
Nguyen Quang ChanhHead of Accounting Department
Phan Thanh TungPresident and CEO17 March 2017Ho Chi Minh City, S.R. Vietnam
These notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
Structure of ownership
PetroVietnam Technical Services Corporation (the “Parent Company”) and its subsidiaries (the Parent Company and the subsidiaries are referred to as the “Corporation”) was established under Business Registration Certificate No. 0103015198 dated 29 December 2006 issued by the Department of Planning and Investment of Hanoi City and other amended Certificates issued by the Department of Planning and Investment of Ho Chi Minh City. The stocks of the Parent company have been listed in the Hanoi Stock Exchange on 20 September 2007 with the stock code of PVS. Vietnam Oil and Gas Group is the main shareholder and the holding company.
The number of the Corporation’s employees as at 31 December 2016 was 8,976 (as at 31 December 2015: 9,655).
Principal activities
Supplying oil and gas services; Management, business and operation of the technology service vessels; Supplying port based services; Supplying ship services, tallying services and freight forwarding; Management, business and operation of the floating storage and offloading (FSO), floating production storage and offloading (FPSO); Management and implementation of marine engineering activities; Machining, assembly, fabrication of components, oil and gas equipment; Fabrication and installation of all types of petroleum storage tanks, liquefied gas pipelines and other types of oil and gas; Repair shipping vessels and the offshore oil and gas projects; Seismic survey services, geophysical and geological survey services, diving, and subsea services by using Remote operated vehicle (ROV) for oil and gas exploration, exploitation, production and industrial buildings, civil; Maintenance, repair, building and conversion of floating facilities; Export and import of equipment for oil and gas supplies; Production and supply of petroleum materials and equipment; Supply of petroleum specialized labour; Operation and maintenance of oil and gas exploitation projects; Supply hotels, housing, office services ; Sales
of petroleum products; Shipping agency services and maritime brokerage; Chartering, shipping brokerage, towage and salvage services; Manufacturing, trading of petroleum products, fertilizer and chemicals for agriculture (except chemicals banned by the State).
Normal production and business cycle
The Corporation’s normal production and business cycle is carried out for a time period of 12 months or less.
The Company’s structure
Details of the Corporation’s branches, subsidiaries, associates and joint ventures as at 31 December 2016 are as follows:
Branches:
• Branch of PetroVietnam Technical Services Corporation - PTSC Marine;
• Branch of PetroVietnam Technical Services Corporation - PTSC Supply Base;
• Branch of PetroVietnam Technical Services Corporation - PTSC Da Nang;
• Branch of PetroVietnam Technical Services Corporation - PTSC Hanoi;
• Branch of PetroVietnam Technical Services Corporation - Engineering and Construction Division;
• Branch of PetroVietnam Technical Services Corporation - Long Phu Power Project Management Board;
• Branch of PetroVietnam Technical Services Corporation - Quang Binh General Petroleum Services Port.
1.GENERAL INFORMATION
For the year ended 31 December 2016CONSOLIDATED CASH FLOW STATEMENT (Continued) FORM B 03-DN/HN
Issued under Circular No.202/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FORM B 09-DN/HN
Issued under Circular No.202/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance
Unit: VND
The accompanying notes are an integral part of these consolidated financial statements
122 123www.ptsc.com.vnANNUAL REPORT 2016
FORM B 09-DN/HN FORM B 09-DN/HN
Name Place of incorporation and operation
Proportion of
ownership interest %
Proportion of voting
power held %
Principal activities
Subsidiaries
PTSC Geos and Subsea Services Company Limited Vietnam 100.00 100.00
Seismic survey, Geo survey and Subsea services
PTSC Mechanical & Construction Company Limited Vietnam 100.00 100.00 Construction in oil and
gas field
PTSC CGGV Geophysical Survey Company Limited Vietnam 51.00 51.00 2D and 3D seismic
data acquisition service
Petro Hotel Company Limited Vietnam 100.00 100.00 Hotel services
PTSC Offshore Services Joint Stock Company Vietnam 84.95 84.95
Operation and maintainance of oil and gas projects
PTSC Quang Ngai Joint Stock Company Vietnam 95.19 95.19 Oil and gas services
PTSC Thanh Hoa Port Joint Stock Company Vietnam 54.69 54.69 Supply base services
Dinh Vu Petroleum Services Port Joint Stock Company Vietnam 51.00 51.00 Supply base services
PTSC Production Services Joint Stock Company Vietnam 51.00 51.00 FPSO/FSO services
PTSC Phu My Port Joint Stock Company Vietnam 59.61 59.61 Supply base services
PetroVietnam Security Joint Stock Company Vietnam 51.00 51.00 Security services
Name Place of incorporation and operation
Proportion of
ownership interest %
Proportion of voting
power held %
Principal activities
Sao Mai - Ben Dinh Petroleum Investment Joint Stock Company Vietnam 51.00 51.00 Supply base service
PTSC Labuan Company Limited (*) Malaysia 100.00 100.00 Marine services
Associates, Joint Ventures
Rong Doi MV12 Private Limited Singapore 33.00 33.00 FSO services
Malaysia Vietnam Offshore Terminal (Labuan) Limited Malaysia 49.00 49.00 FPSO/FSO services
Vietnam Offshore Floating Terminal (Ruby) Limited Malaysia 60.00 60.00 FPSO/FSO services
PTSC South East Asia Private Limited Singapore 51.00 51.00 FPSO/FSO services
PTSC Asia Pacific Private Limited Singapore 51.00 51.00 FPSO/FSO services
PetroVietnam Marine Shipyard Joint Stock Company Vietnam 28.75 28.75 Building, installation of
oil construction
Thi Vai General Port Joint Stock Company Vietnam 21.46 21.46 Supply base services
(*) PTSC Labuan Company Limited was established according to Resolution No. 498/NQ-DVKT-HDQT dated 24 August 2016 of the Board of Management of PetroVietnam Technical Services Corporation. The charter capital of PTSC Labuan Company Limited is USD 572,565.12, in which, contributed by PTSC Hai Phong Vessel with net book value of USD 406,548.43, equivalent to VND 9,055,866,278. In 2016, the Parent Company has contributed to PTSC Labuan Company Limited by net book value of the PTSC Hai Phong Vessel.
Disclosure of information comparability in the consolidated financial statements
Comparative figures are the figures of the audited consolidated financial statements for the year ended 31 December 2015.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
124 125www.ptsc.com.vnANNUAL REPORT 2016
Accounting convention
The accompanying consolidated financial statements, expressed in Vietnam Dong (VND), are prepared under the historical cost convention and in accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to financial reporting.
The accompanying consolidated financial statements
are not intended to present the consolidated financial position, consolidated results of operations and consoli-dated cash flows in accordance with accounting princi-ples and practices generally accepted in countries and jurisdictions other than Vietnam.
Financial year
The Corporation’s financial year begins on 1 January and ends on 31 December.
On 21 March 2016, the Ministry of Finance issued Circular No. 53/2016/TT-BTC (“Circular 53”) amending and supplementing certain articles of Cir-cular No. 200/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance guiding the accounting regime for enterprises. Circular 53 is effective for the
financial years beginning on or after 1 January 2016. The Board of Management has adopted Circular 53 in the preparation and presentation of the Corporation’s consolidated financial statements for the year ended 31 December 2016.
2. ACCOUNTING CONVENTION AND FINANCIAL YEAR
3. ADOPTION OF NEW ACCOUNTING GUIDANCE
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Estimates
The preparation of consolidated financial statements in conformity with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to financial reporting requires the Board of Management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the financial year. Although these accounting estimates are based on the Board of Management’s best knowledge, actual results may differ from those estimates.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Parent Company and
enterprises controlled by the Parent Company (its subsidiaries) up to 31 December each year. Control is achieved where the Parent Company has the power to govern the financial and operating policies of an investee enterprise so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used in line with those used by the Parent Company.
Intragroup transactions and balances are eliminated in full on consolidation.
The significant accounting policies, which have been adopted by the Corporation in the preparation of these consolidated financial statements, are as follows:
Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the parent’s ownership interests in them. Non-controlling interests consist of the amount of those non-controlling interests at the date of the original business combination (see below) and the non-controlling interests’ share of changes in equity since the date of the combination. Losses in subsidiaries are respectively attributed to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
Business combinations
On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognised as goodwill. Any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired is credited to profit and loss in the period of acquisition.
The non-controlling interests are initially measured at the non-controlling shareholders’ proportion of the net fair value of the assets, liabilities and contingent liabilities recognised.
Investments in associates
An associate is an entity over which the Corporation has significant influence and that is neither a subsidiary nor an interest in joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but not control or joint control over those policies.
The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting. Interests in associates are carried in the balance sheet at cost as adjusted by post-acquisition changes in the Corporation’s share of the net assets of the associate. Losses of an associate in excess of the Corporation’s interest in that associate (which includes any long-term interests that, in substance, form part of the Corporation’s net investment in the associate) are not recognised.
Where a group entity transacts with an associate of the Corporation, unrealised profits and losses are
eliminated to the extent of the Corporation’s interest in the relevant associate.
Interests in joint ventures
A joint venture is a contractual arrangement whereby the Parent Company and other parties undertake an economic activity that is subject to joint control, i.e., the strategic financial and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control.
Joint venture arrangements that involve the establishment of a separate entity in which each venturer has an interest are referred to as jointly controlled entities. The Parent Company reports its interests in jointly controlled entities using the equity method of accounting. Accordingly, the joint venture is presented in consolidated balance sheet at cost and adjusted for changes in share capital of the Parent Company in the net assets of the joint venture after the date of capital contribution in the joint venture company.
Financial instruments
Initial recognition
Financial assets: At the date of initial recognition, financial assets are recognized at cost plus transaction costs that are directly attributable to the acquisition of the financial assets. Financial assets of the Corporation comprise cash and cash equivalents, trade and other receivables, loan receivables, deposits and financial investments.
Financial liabilities: At the date of initial recognition financial liabilities are recognized at cost plus transaction costs that are directly attributable to the issue of the financial liabilities. Financial liabilities of the Corporation comprise trade and other payables, accrued expenses, provisions and borrowings.
Subsequent measurement after initial recognition
Currently there are no requirements for the subsequent measurement of the financial instruments after initial recognition.
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
126 127www.ptsc.com.vnANNUAL REPORT 2016
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, cash in bank and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Financial investments
Held-to-maturity investments
Held-to-maturity investments comprise investments that the Corporation has the positive intent or ability to hold to maturity, including term deposits, loans held to maturity to earn periodic interest and other held-to-maturity investments.
Held-to-maturity investments are recognised on a trade date basis and are initially measured at acquisition price plus directly attributable transaction costs. Post-acquisition interest income from held-to-maturity investments is recognised in the income statement on accrual basis. Pre-acquisition interest is deducted from the cost of such investments at the acquisition date.
Held-to-maturity investments are measured at cost less provision for doubtful debts.
Provision for doubtful debts relating to held-to-maturity investments is made in accordance with prevailing accounting regulations.
Loan receivables
Loan receivables are measured at cost less provision for doubtful debts. Provision for doubtful debts relating to loan receivables is made in accordance with prevailing accounting regulations.
Equity investments in other entities
Equity investments in other entities represent the Corporation’s investments in ordinary shares of the entities over which the Corporation has no control, joint control, or significant influence.
Equity investments in other entities are carried at cost less provision for impairment.
Receivables
Receivables represent the amounts recoverable from customers or other debtors and are stated at book value less provision for doubtful debts.
Provision for doubtful debts is made for receivables that are overdue for six months or more or when the debtor is in dissolution, in bankruptcy, or is experiencing similar difficulties and so may be unable to repay the debt.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated using the weighted average method. Net realisable value represents the estimated selling price less all estimated costs to completion and costs to be incurred in marketing, selling and distribution.
The evaluation of necessary provision for inventory obsolescence follows current prevailing accounting regulations which allow provisions to be made for obsolete, damaged, or sub-standard inventories and for those which have costs higher than net realisable values as at the balance sheet date.
Tangible fixed assets and depreciation
The costs of purchased tangible fixed assets comprise their purchase prices and any directly attributable costs of bringing the assets to their working conditions and locations for their intended use. The costs of tangible fixed assets formed from construction investment by contractual mode or self-construction or self-generating process are the settled costs of the invested construction projects in accordance with the prevailing State’s regulations on investment and construction management, directly-related expenses and registration fee (if any). In the event the construction project has been completed and put into use but the settled costs thereof have not been approved, the cost of tangible fixed assets is recognised at the estimated cost based on the actual cost incurred. The estimated cost will be adjusted according to the settled costs approved
by competent authorities. Tangible fixed assets are depreciated using the straight-line method over the estimated useful lives as follow:
Years
Buildings and structures 03 - 45
Machinery and equipment 03 - 20
Motor vehicles 06 - 10
Office equipment 03 - 10
Others 04 - 14
Intangible assets and amortisation
Intangible assets represent land use rights and computer software that are stated at cost less accumulated amortisation. Land use rights with indefinite duration are not amortised according to current regulations. Computer software is amortised within 3 years.
Investment property
Investment properties, which are composed of infrastructures held by the Corporation to earn rentals or for capital appreciation, are stated at cost less accumulated depreciation. The cost of purchased investment properties comprises its purchase price and any directly attributable expenditures, such as professional fees for legal services, property transfer taxes and other related transaction costs. The costs of self-constructed investment properties are the finally accounted construction or development costs of the properties.
Investment properties are depreciated using the straight-line method over the lease term.
Construction in progress
Properties in the course of construction for production, rental and administrative purposes or for other purposes are carried at cost. The cost includes any costs that are necessary to form the asset including construction cost, equipment cost, other directly attributable costs in accordance with the Corporation’s accounting policy. Such costs will be included in the estimated costs of the fixed assets (if settled costs have not been approved)
when they are put into use.
According to the State’s regulations on investment and construction management, the settled costs of completed construction projects are subject to approval by appropriate levels of competent authorities. The final costs of these completed construction projects may vary depending on the final approval by competent authorities.
Prepayments
Prepayments are expenses which have already been paid but relate to results of operations of multiple accounting periods. Long-term prepayments consist of land use rights, prepaid land rentals, office rentals, costs for equipment mainternance and other long-term prepayments. Land rentals are allocated over their useful lives.
The office rental at PetroVietnam Tower No. 1-5 Le Duan Street, District 1, Ho Chi Minh City is from October 2010, over 50 years. The Corporation allocates this rental to the consolidated income statement pursuant to the lease term and annual using areas.
The cost of site clearance at Son Tra Port is transferred to Branch of PetroVietnam Technical Services Corporation - PTSC Da Nang from 20 December 2015 with the duration of 42 years. The Corporation allocates this site clearance cost to the consolidated income statement over the annual lease term.
Other long-term prepayments comprise tools and supplies which are expected to provide future economic benefits to the Corporation for one year or more. Other long-term prepayments are charged to the consolidated income statement using straight-line method over 3 years..
Payable provisions
Payable provisions are recognised when the Corporation has a present obligation as a result of a past event, and it is probable that the Corporation will be required to settle that obligation. Provisions are measured at the Board of Management’s best estimate of the expenditure required to settle the obligation as at the balance sheet date.
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
128 129www.ptsc.com.vnANNUAL REPORT 2016
Leasing
Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases.
The Corporation as lessor
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are recognized to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.
The Corporation as lessee
Rentals payable under operating leases are charged to the consolidated income statement on a straight-line basis over the term of the relevant lease. Benefits received and receivable as an incentive to enter into an operating lease are also recognized on a straight-line basis over the lease term.
Revenue recognition
Revenue from the sale of goods is recognised when all five (5) following conditions are satisfied:
(a) the Corporation has transferred to the buyer the significant risks and rewards of ownership of the goods;
(b) the Corporation retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
(c) the amount of revenue can be measured reliably;
(d) it is probable that the economic benefits associated with the transaction will flow to the Corporation;
(e) the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue of a transaction involving the rendering of services is recognised when the outcome of such transactions can be measured reliably. Where a
transaction involving the rendering of services is attributable to several years, revenue is recognised in each year by reference to the percentage of completion of the transaction at the balance sheet date of that year. The outcome of a transaction can be measured reliably when all four (4) following conditions are satisfied:
(a) the amount of revenue can be measured reliably;
(b) it is probable that the economic benefits associated with the transaction will flow to the Corporation;
(c) the percentage of completion of the transaction at the balance sheet date can be measured reliably; and
(d) the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
Interest income is accrued on a time basis, by reference to the principal outstanding and at the applicable interest rate. Dividend income from investments is recognised when the Corporation’s right to receive payment has been established (excluding investments in subsidiaries, associates, joint ventures).
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date as measured by the proportion that contract costs incurred for work performed to date relative to the estimated total contract costs, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that they have been agreed with the customer.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that it is probable of recovery.
Foreign currencies
Transactions arising in foreign currencies are translated at exchange rates ruling at the transaction date. The
balances of monetary items denominated in foreign currencies as at the balance sheet date are retranslated at the exchange rates on the same date. Exchange differences arising from the translation of these accounts are recognised in the consolidated income statement.
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
Other borrowing costs are recognised in the consolidated income statement when incurred.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable income for the year. Taxable income differs from profit before tax as reported in the consolidated 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 recognised on significant differences between carrying amounts of assets and liabilities
in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using balance sheet liability method. Deferred tax liabilities are generally recognised for all temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilised.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised. Deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same tax authority and the Corporation intends to settle its current tax assets and liabilities on a net basis.
The determination of the tax currently payable is based on the current interpretation of tax regulations. However, these regulations are subject to periodic variation and their ultimate determination depends on the results of the tax authorities’ examinations.
Other taxes are paid in accordance with the prevailing tax laws in Vietnam.
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
130 131www.ptsc.com.vnANNUAL REPORT 2016
5. CASH AND CASH EQUIVALENTS
31/12/2016 31/12/2015
VND VND
Cash on hand 7,238,713,722 10,845,491,662
Cash in bank 2,639,386,081,536 3,965,301,277,854
Cash in transit 133,301,541 6,756,783,667
Cash equivalents 3,236,911,574,941 4,008,483,803,541
5,883,669,671,740 7,991,387,356,724
Cash equivalents as at 31 December 2016 represent time deposits in local commercial banks with the term less than 3 months and interest rates ranging from 4.3% to 5.4% per annum (as at 31 December 2015: interest rates from 4% to 5.3% per annum).
Held-to-maturity investments represent deposits with the terms more than 3 months and less than 1 year in commercial banks with interest rates ranging from 5.1% to 6.5% per annum (as at 31 December 2015: interest rates from 5.3% to 6.6% per annum).
6. HELD-TO-MATURITY INVESTMENTS
7. SHORT-TERM TRADE RECEIVABLES31/12/2016 31/12/2015
VND VNDCuu Long Joint Operating Company 709,819,148,346 117,488,200,592
Bien Dong Petroleum Operating Company 477,128,220,848 610,194,370,810
Lam Son Joint Operating Company 376,822,653,997 392,380,965,986
Power Plant 3 Project Management Board 349,773,514,217 -
PetroVietnam Gas Joint Stock Corporation 291,425,001,609 161,969,108,539
Swiber Offshore (India) Private Limited 220,970,649,030 - Petroleum Domestic Exploration Production Operating Company Limited 183,869,463,677 198,158,212,048
CGG Services SA Corporation 177,473,488,941 -
PetroVietnam Fertilizer and Chemicals Corporation 172,978,117,164 73,573,917,895
JGCS Consortium 149,958,747,824 142,396,652,665
PetroVietnam Exploration Production Corporation 121,244,498,956 188,288,143,102
Long Phu 1 Power Plant Project Management Board 40,973,825,781 483,710,619,276
Others 1,493,842,512,571 1,861,521,385,118 4,766,279,842,961 4,229,681,576,031
The significant balances of trade receivables from the related parties are presented in Note 44.
8. RECEIVABLES/PAYABLES FROM CONSTRUCTION CONTRACTS UNDER PERCENTAGE OF COMPLETION METHOD
31/12/2016 31/12/2015
VND VND
Contracts in progress as at the balance sheet date:
Receivables from construction contracts under percentage of completion method 438,107,372,763 4,765,479,848
Payables relating to construction contracts under percentage of completion method (238,298,386,212) (20,520,328,878)
199,808,986,551 (15,754,849,030)
Contract costs incurred plus recognised profits less recognised losses 1,526,279,421,270 51,121,985,399
Less: progress billings (1,326,470,434,719) (66,876,834,429)
199,808,986,551 (15,754,849,030)
As at 31 December 2016, the Corporation has recorded revenue, expenses according to Vietnamese Accounting Estándar - No. 15 - Construction Contract for projects: NPK Plant Project, NH3 Revamped PlantProject and Ca Mau Gas Processing Project.
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
132 133www.ptsc.com.vnANNUAL REPORT 2016
9. OTHER RECEIVABLES 31/12/2016 31/12/2015
VND VNDa) Short-term
Long Phu 1 Power Plant Project Management Board (i) 206,879,316,776 12,575,464,419
JGCS Consortium (ii) 86,542,209,070 160,751,821,743
Vietnam Oil and Gas Group (iii) 59,514,542,073 40,811,003,545
Malaysia Vietnam Offshore Terminal (Labuan) Limited (iv) 44,531,200,000 77,003,500,000
Undeductible VAT 40,926,117,807 67,529,647,074 PetroVietnam Insurance Corporation (v) 30,970,354,115 -
Lilama Corporation (vi) 26,746,568,852 9,299,083,063
Interest of time-deposits 25,931,332,538 14,265,945,718 Petroleum Domestic Exploration Production Operating Company (vii) 22,579,091,739 5,925,839,415
Nghi Son Refinery and Petrochemicals Company Limited (viii) 21,529,260,315 90,847,767,158
Bien Dong Petroleum Operating Company 16,690,612,452 12,624,211,512
Petroleum Oversea Exploration Production Operating Company 10,061,561,353 -
CGG Services SA Corporation 9,780,223,190 - Mortages, deposits 8,352,302,646 23,557,303,823 Toisa Company Limited 4,869,745,252 - Lam Son Joint Operating Company 2,943,698,601 5,618,032,041 Talisman Malaysia Company Limited 1,983,372,593 20,293,373,860 Nhon Trach Shipyard Joint Stock Company (ix) - 230,819,875,570 Dung Quat Shipbuilding Industry Company (ix) - 124,740,417,492
Representative office in Ho Chi Minh City - Idemtisu Kosan Company Limited (Block 39&40/02) - 179,567,269,713
Japan Vietnam Petroleum Corporation - 14,151,516,545
Representative office in Ho Chi Minh City - Eni Vietnam B.V - 13,900,487,576
Saipem Asia Sdn Bhd - 7,033,848,822 Others receivables 46,647,551,713 31,239,716,087
667,479,061,085 1,142,556,125,176
b) Long-termElectronics Communciations Technology Investment Development Corporation 11,516,550,273 11,516,550,273
Deposits and mortages 9,720,826,709 3,131,717,694 Others receivables 912,928,689 11,046,334,856
22,150,305,671 25,694,602,823
(I) Receivable from Long Phu 1 Power Plant Project Management Board includes the accrued revenue based on the percentage of completion relating to Long Phu 1 Power Plant.
(II) Receivable from JGCS Consortium represents the accrued revenue related to the services rendered to Nghi Son Refinery and Petrochemical Complex Project.
(III) Receivables from Vietnam Oil and Gas Group represent the accrued revenue relating to the 2D/3D seismic survey services rendered that belong to PVN12, PVN15 projects and other receivables.
(IV) Receivable from Malaysia Vietnam Offshore Terminal (Labuan) Limited is related to the profit shared for the year ended 31 December 2016 based on the declaration of Malaysia Vietnam Offshore Terminal (Labuan) Limited.
(V) Receivable from PetroVietnam Insurance Corporation represents the compensation receivable relating to CGG Amadues vessel.
(VI) Receivable from Lilama Corporation represents the accrued revenue relating to Song Hau 1 Power Plant Project.
(VII) Receivable from Petroluem Domestic Exploration Production Operating Company represents receivable relating to fuel fee on service vessels and the payment on behalf for shipping agency services.
(VIII) Receivable from Nghi Son Refinery and Petrochemical Complex Project Management Board represents the accrued revenue for completed progress of Nghi Son Port dredging services.
(IX) In 2016, the Corporation offset the receivable from Nhon Trach Shipyard Joint Stock Company and Dung Quat Shipbuilding Industry Company with the payable to Vietnam Oil and Gas Group relating to Nhon Trach Shipbuilding Factory Project according to the Official Dispatch No. 917/DVKT-TCKT dated 27 June 2016 sent to Vietnam Oil and Gas Group.
10. INVENTORIES
31/12/2016 31/12/2015
Cost Provision Cost Provision
VND VND VND VND
Goods in transit 1,445,317,815 - 25,661,984,631 -
Raw materials 87,207,081,315 (5,208,842,819) 75,506,120,923 (5,696,915,149)
Tools and supplies 25,911,872,334 - 43,569,400,889 -
Work in progress (*) 1,539,522,556,112 - 1,046,524,633,778 -
Merchandise 1,253,234,720 - 4,515,397,525 -
Goods on consignment 613,703,580 - - -
1,655,953,765,876 (5,208,842,819) 1,195,777,537,746 (5,696,915,149)
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
134 135www.ptsc.com.vnANNUAL REPORT 2016
(*) Details of work in progress are as follows:
31/12/2016 31/12/2015
Cost Recoverableamount Cost Recoverable
amount
VND VND VND VNDSu Tu Trang Full Field project 1,309,513,731,020 1,309,513,731,020 535,463,865,959 535,463,865,959
Nghi Son Refinery and Petrochemical Complex project - SMP9 package
77,498,206,903 77,498,206,903 37,493,934,879 37,493,934,879
Nghi Son Refinery and Petrochemical Complex project - SMP8 package
6,483,349,859 6,483,349,859 1,162,312,348 1,162,312,348
Nghi Son Refinery and Petrochemical Complex project - Tank package
3,414,150,812 3,414,150,812 9,698,679,483 9,698,679,483
Nghi Son Refinery and Petrochemical Complex project - Port package
- - 43,686,567,588 43,686,567,588
Nghi Son Refinery and Petrochemical Complex project - SSF2 package
- - 22,828,786,197 22,828,786,197
Low Pressure Gas Distribution project 42,930,280,702 42,930,280,702 64,164,153,447 64,164,153,447
HUC Su Tu Trang project 11,308,249,902 11,308,249,902 - -
Long Phu 1 Thermal Power Plant project 10,623,728,307 10,623,728,307 518,115,454 518,115,454
Badamyar - Huyndai project 9,789,163,621 9,789,163,621 - -
Ca Mau GPP project 7,225,688,903 7,225,688,903 - -
Maharaja Lela South project (MLS) - - 143,146,645,256 143,146,645,256
PVN Tie-lines project - - 86,967,265,455 86,967,265,455
On fabrication for Sapura project - - 21,761,976,344 21,761,976,344
Thai Binh Ham Rong Pipeline project - - 1,193,226,209 1,193,226,209
Others 60,736,006,083 60,736,006,083 78,439,105,159 78,439,105,159
1,539,522,556,112 1,539,522,556,112 1,046,524,633,778 1,046,524,633,778
11. PREPAYMENTS 31/12/2016 31/12/2015
VND VNDa. Short-termSpare parts expense of CGG Amadeus vessel, Binh Minh 02 vessel 4,557,043,774 4,789,313,798
Insurance cost for FPSO Ruby II 3,054,650,795 4,568,862,973 Tools and supplies cost 6,240,421,794 6,424,673,304 Insurance cost 3,595,824,301 2,105,904,819 Other short-term prepayments 6,921,202,987 5,464,693,236
24,369,143,651 23,353,448,130
b. Long-termOffice rental at No. 1-5 Le Duan Street (i) 304,399,782,199 308,895,368,087 Land rental in Dinh Vu Economic Zone (ii) 116,908,164,683 120,762,280,007 Site clearance cost at Son Tra Harbour (iii) 102,554,699,731 105,042,820,015 Equipment and spare parts expense of CGG Amadeus vessel, Binh Minh 02 vessel (iv) 71,565,751,496 112,252,844,716
Maintenance cost awaiting allocation 32,330,917,843 40,327,860,499 Repair expense for the restaurant at 1st Floor, PetroVietnam Hotel 13,916,757,594 -
Repair expense for Binh Minh 02 and CGG Amadues vessel 9,758,152,279 -
Tools awaiting allocation 8,561,332,439 6,471,403,674 Pre-operation expense of FPSO Lam Son 7,327,715,605 24,914,233,081 Son Tra harbour rental fee 3,491,936,308 3,576,530,076 Repair cost of PTSC Researcher 106 vessel - 9,916,260,348 Other long-term prepayments 26,653,770,180 13,885,739,480
697,468,980,357 746,045,339,983
(I) Prepayment for office rental at No. 1-5 Le Duan Street started since October 2010 with the lease term of 50 years. The Corporation allocates this prepayment into the consolidated income statement based on the lease term and annual using area.
(II) Dinh Vu Petroleum Services Port Joint Stock Company has rent an area of 138,269 m2 in Dinh Vu Economic Zone – Hai Phong City from Dinh Vu Development Limited Company (now known as Dinh Vu Industrial Zone Joint Stock Company) to build up the Base of PetroVietnam Technical Services and Supply Base for the Industry Zone. The lease term is from October 2007 to April 2047. The value of land use rights is amortised using straight line method from July 2008 to the end of the contract term.
(III) The site clearance cost regarding Son Tra Harbour transferred to Branch of PetroVietnam Technical Services Cor–oration - PTSC Da Nang since 20 December 2015 with the duration of 42 years. The Corporation allocates this site clearance cost to the consolidated income statement over the annual lease term.
(IV) Equipment and spare part expense of CGG Amadeus vessel, Binh Minh 02 vessel represents the cost of repair, mainternance for equipment on CGG Amadeus vessel, Binh Minh 02 vessel. These prepayments are allocated using straight line method from 2 years to 6 years.
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
136 137www.ptsc.com.vnANNUAL REPORT 2016
12. I
NCR
EASE
, DEC
REA
SE IN
TA
NG
IBLE
FIX
ED A
SSET
S
Build
ings
and
struc
ture
sM
achi
nery
and
equi
pmen
tM
otor
veh
icles
Man
agem
ent t
ools,
supp
lies
and
equi
pmen
tsO
ther
sTo
tal
VND
VND
VND
VND
VND
VND
COST
As a
t 31/
12/2
015
3,30
8,97
0,23
6,49
4 1
,656
,675
,294
,318
6,5
29,4
96,2
07,4
25
125,
986,
069,
032
32,2
89,0
87,2
65
11,6
53,4
16,8
94,5
34
Purc
hase
in th
e ye
ar90
0,00
0,00
019
0,77
7,16
3,66
950
,768
,385
,271
17,9
11,3
48,1
42 9
54,6
79,6
45
261
,311
,576
,727
Tr
ansfe
r fro
m c
onstr
uctio
n in
pro
gres
s 1
5,15
3,92
4,03
7 5
,321
,202
,287
-
1,6
06,8
00,0
00
47,
728,
520
22,
129,
654,
844
Othe
r inc
reas
es -
- -
535
,509
,091
-
535
,509
,091
Di
spos
al -
(671
,928
,000
) (2
,735
,589
,762
) (2
19,2
31,5
28)
- (3
,626
,749
,290
)O
ther d
ecre
ases
(508
,437
,540
) (1
,404
,612
,321
) (4
,687
,653
,735
) -
- (6
,600
,703
,596
)As
at 3
1/12
/201
63,
324,
515,
722,
991
1,85
0,69
7,11
9,95
36,
572,
841,
349,
199
145,
820,
494,
737
33,2
91,4
95,4
3011
,927
,166
,182
,310
ACCU
MUL
ATED
DEP
RECI
ATIO
NAs
at 3
1/12
/201
51,
689,
199,
213,
474
936,
580,
350,
435
4,21
9,36
0,77
9,70
593
,545
,155
,043
12,9
46,0
44,5
146,
951,
631,
543,
171
Cha
rge
for t
he y
ear
150,
886,
480,
585
192,
050,
915,
479
482,
762,
768,
559
21,8
17,0
22,4
143,
849,
484,
479
851,
366,
671,
516
Othe
r inc
reas
es -
- -
36,
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334
- 36
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Di
spos
al -
(564
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) (2
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) (2
19,2
31,5
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- (3
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,678
)O
thers
decr
ease
s (9
4,66
8,48
4) (7
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21,8
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(5,2
50,3
01,8
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- (1
67,1
86)
(6,1
16,4
59,3
42)
As a
t 31/
12/2
016
1,83
9,99
1,02
5,57
51,
127,
295,
477,
693
4,69
4,13
7,65
6,66
311
5,17
9,75
3,26
316
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7,79
3,39
9,27
5,00
1N
ET B
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K VA
LUE
As a
t 31/
12/2
015
1,61
9,77
1,02
3,02
072
0,09
4,94
3,88
32,
310,
135,
427,
720
32,4
40,9
13,9
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4,70
1,78
5,35
1,36
3
As a
t 31/
12/2
016
1,48
4,52
4,69
7,41
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3,40
1,64
2,26
01,
878,
703,
692,
536
30,6
40,7
41,4
7416
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4,13
3,76
6,90
7,30
9
As st
ated
in N
ote
24, t
he C
orpo
ratio
n pl
edge
d its
tang
ible
fixed
ass
ets w
hich
wer
e fo
rmed
from
the
loan
s with
the
cost
of V
ND
2,41
4,33
2 m
illion
as a
t 31
Dece
mbe
r 20
16 (a
s at 3
1 De
cem
ber 2
015:
VN
D 4,
368,
643
milli
on) t
o se
cure
ban
king
facil
ities g
rante
d to
the
Cor
pora
tion.
The
cost
of th
e C
orpo
ratio
n’s
tang
ible
fixed
ass
ets
inclu
des
VND
3,58
0,22
2 m
illion
of f
ixed
asse
ts as
at 3
1 De
cem
ber 2
016
(as
at 3
1 De
cem
ber 2
015:
VN
D 2,
942,
914
milli
on) w
hich
hav
e be
en fu
lly d
epre
ciate
d bu
t are
still
in u
se.
Durin
g the
year
, PTS
C G
eos a
nd S
ubse
a Se
rvice
s Com
pany
Lim
ited
has c
hang
ed th
e tim
e of
dep
recia
tion
of so
me
mac
hine
s, eq
uipm
ent fr
om 0
7 to
10
year
s. Ac
cord
ingl
y,
if the
Cor
pora
tion
had
appl
ied
the p
revio
us d
epre
ciatio
n ra
tes,
its d
epre
ciatio
n ex
pens
e ch
arge
d du
ring
the y
ear p
rese
nted
in th
e co
nsol
idat
ed fi
nanc
ial s
tate
men
t wou
ld
have
incr
ease
d by
VN
D 7,
732,
856,
478
and
the p
rofit
befo
re ta
x pr
esen
ted
in th
e co
nsol
idat
ed fi
nanc
ial s
tate
men
ts w
ould
hav
e de
crea
sed
by th
e sa
me
amou
nt.
13. INCREASE, DECREASE IN INTANGIBLE ASSETS
Land use rights Computersoftware Others Total
VND VND VND VND
COST
As at 31/12/2015 1,310,220,000 68,908,471,925 948,862,800 71,167,554,725
Purchase in the year - 1,119,968,750 36,000,000 1,155,968,750
Transfer from construction in progress - 4,974,860,000 - 4,974,860,000
Other decreases - (454,560,000) - (454,560,000)
As at 31/12/2016 1,310,220,000 74,548,740,675 984,862,800 76,843,823,475
ACCUMULATED AMORTISATION
As at 31/12/2015 - 44,522,573,537 613,999,928 45,136,573,465
Charge for the year - 14,593,950,595 69,000,000 14,662,950,595
Other increases - 372,099,287 - 372,099,287
As at 31/12/2016 - 59,488,623,419 682,999,928 60,171,623,347
NET BOOK VALUE
As at 31/12/2015 1,310,220,000 24,385,898,388 334,862,872 26,030,981,260
As at 31/12/2016 1,310,220,000 15,060,117,256 301,862,872 16,672,200,128
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
138 139www.ptsc.com.vnANNUAL REPORT 2016
14. INVESTMENT PROPERTIES
Infrastructure
VND
COST
As at 31/12/2015 and 31/12/2016 229,280,786,454
ACCUMULATED AMORTISATION
As at 31/12/2015 27,003,650,691
Charge for the year 4,735,271,856
As at 31/12/2015 31,738,922,547
NET BOOK VALUE
As at 31/12/2015 202,277,135,763
As at 31/12/2015 197,541,863,907
Details of investment property cost are as follows:
31/12/2016
VND
39.8 hectare - infrastructure project (i) 131,881,668,267
23 hectare - infrastructure project (ii) 97,399,118,187
229,280,786,454
(I) Investment property represents 39.8 hectare land and infrastructure at Sao Mai - Ben Dinh marine service base of Sao Mai Ben Dinh project which was completed in 2009 and then has been rented by PetroVietnam Marine Shipyard Joint Stock Company since 2010. This investment property is depreciated using the straight-line method over the lease term of 48 years.
(II) Investment property represents 23 hectare land and infrastructure at Sao Mai - Ben Dinh marine service base of Sao Mai Ben Dinh project rented
by Petroleum Equipment Assembly & Metal Structure Joint Stock Company in 2010. This investment property is depreciated using the straight-line method over 49 years.
The Corporation’s income for the year ended 31 December 2016 from the investment properties is VND 5,203,799,784. Direct operating expense arising on the investment properties for the year ended 31 December 2016 is VND 4,735,271,856.
15. L
ON
G-T
ERM
ASS
ETS
IN P
ROG
RESS
31/
12/2
016
31/
12/2
015
Cos
t R
ecov
erab
leam
ount
Cos
t R
ecov
erab
leam
ount
VND
VND
VND
VND
a. Lo
ng-te
rm w
ork
in p
rogr
ess
Long
Phu
1 T
herm
al P
ower
Pla
nt Pr
ojec
t 3
01,3
08,4
40,4
89
301,
308,
440,
489
301
,308
,440
,489
30
1,30
8,44
0,48
9 Bi
o Eth
anol
Pro
ject
69,
177,
500,
000
69,
177,
500,
000
68,
370,
454,
546
68,
370,
454,
546
370,
485,
940,
489
370,
485,
940,
489
369,
678,
895,
035
369,
678,
895,
035
b. C
onstr
uctio
n in
pro
gres
s31
/12/
2016
31/1
2/20
15VN
DVN
D
Sao
Mai
- Be
n Di
nh le
vellin
g po
rt N
o.1
proj
ect
46,
464,
611,
169
815
,349
,005
Sao
Mai
- Be
n Di
nh M
arin
e se
rvice
s bas
e co
nstru
ction
pro
ject
15,
258,
780,
716
15,
258,
780,
716
Expa
nsio
n of
mec
hani
c, p
ainti
ng fa
ctory
at D
ung
Qua
t pro
ject
11,
909,
817,
032
- O
res w
areh
ouse
No.
2 Ho
n La
Har
bour
at Q
uang
Bin
h 9
,793
,265
,376
-
Ballis
tic, s
pray
pai
nting
syste
m in
Qua
ng N
gai
7,7
97,3
20,8
29
- Lit
roni
c TC
C30
0 cr
ane
at P
hu M
y Po
rt 7
,601
,069
,920
-
Wha
rf ex
tens
ion
of D
inh
Vu p
ort p
roje
ct 6
,003
,592
,042
3
,723
,232
,409
So
ftwar
e fo
r ope
ratin
g ac
tivitie
s 5
,092
,185
,049
-
Reno
vatio
n an
d de
velo
pmen
t the
offic
e at
PTS
C Q
uang
Nga
i Joi
nt St
ock
Com
pany
4,9
00,5
35,7
13
-
Sao
Mai
- Be
n Di
nh p
etro
leum
servi
ce p
roje
ct at
squa
re o
f 35
hecta
re 2
,793
,745
,719
2
,718
,983
,969
Re
nova
tion
of th
e re
staur
ant o
n the
first
floo
r of V
ung
Tau
Petro
Hot
el -
17,
995,
830,
691
Electr
onic
gene
rato
r 100
KVA
- 4
,740
,000
,000
Re
nova
tion
and
upgr
adin
g do
cum
ent s
tora
ge -
2,1
73,8
67,9
43
Reno
vatio
n of
was
tew
ater
trea
tmen
t of V
ung
Tau
Petro
Hot
el -
1,4
13,4
80,7
90
Vide
o co
nfer
ence
syste
m -
1,7
33,2
00,0
00
Othe
rs 1
0,57
1,71
8,85
9 4
,169
,324
,942
12
8,18
6,64
2,42
454
,742
,050
,465
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
140 141www.ptsc.com.vnANNUAL REPORT 2016
16. INVESTMENTS IN JOINT VENTURES, ASSOCIATES
31/12/2016 31/12/2015
VND VND
Cost of investments in joint ventures, associates 2,479,809,740,787 2,479,809,740,787
Net income from associates, joint ventures:
Accumulated in the prior years 1,686,683,896,116 1,063,518,743,276
Income from associates, joint ventures during the year 667,105,854,738 753,186,652,840
Less: Dividend received (126,323,200,000) (130,021,500,000)
4,707,276,291,641 4,166,493,636,903
Details of these associates, joint ventures as at 31 December 2016 are as follows:
Name of entity Location
Proportion of ownership interest %
Principal activityPer Investment Certificate
Per actual contribution
Rong doi MV12 Pte. Ltd. Singapore 33.00 33.00 FSO services
Malaysia Vietnam Offshore Terminal (Labuan) Limited (i) Malaysia 49.00 49.00 FSO/FPSO services
Vietnam Offshore Floating Terminal (Ruby) Limited (ii)) Malaysia 60.00 60.00 FSO/FPSO services
PetroVietnam Marine Shipyard Joint Stock Company Việt Nam 28.75 28.75 Building, installation
of oil construction
PTSC South East Asia Private Limited (iii) Singapore 51.00 51.00 FSO/FPSO services
PTSC Asia Pacific Private Limited (iv) Singapore 51.00 51.00 FSO/FPSO services
Thi Vai General Port Joint Stock Company (v) Việt Nam 21.46 21.46 Supply base services
(I) Malaysia Vietnam Offshore Terminal (Labuan) Limited is a jointly controlled venture company established between the Corporation and its partner, Malaysia International Shipping Corporation Berhard in 2009 to invest in FSO “Orkid” with the capacity of 650,000 barrels of oil for Talisman Malaysia Limited to rent within 10 years for offshore oil exploitation at PM-3 bounded trade area between Vietnam and Malaysia. FSO “Orkid” has operated since 2009.
(II) Vietnam Offshore Floating Terminal (Ruby) Limited is a jointly controlled venture company established between the Corporation and its partner, Malaysia International Shipping Corporation Berhard in 2009, in which, the Corporation owns 60% of the charter capital to own, manage and operate FPSO “Ruby II” for oil exploration and production of Petronas. FPSO “Ruby II” has started its operation and exploitation since June 2010.
(III) PTSC South East Asia Private Limited is a jointly controlled venture company, established in September 2011 by the Corporation and its partner, Yinson Holdings Berhad (Malaysia), under Foreign Investment Certificate No. 474/BKHDT-DTRNN issued by the Ministry of Planning and Investment dated 31 October 2011 to invest and provide FSO service for Bien Dong 1 Project. Total investment capital of the project is USD 149,318,329, equivalent to VND 3,071,478 million, in which, the capital contributions of joint venture parties are USD 37,329,582, taking up 25% of its investment capital, the remaining is the borrowing capital. In which, the capital contribution of the Parent Company is USD 19,038,087, equivalent to VND 391,613 million, taking up 51% of its charter capital. The principal activities of the jointly controlled venture are to invest and own FSO “PTSC Bien Dong 01”. PTSC South East Asia Private Limited started its operating in 2011. As at 31 December 2016, the Corporation has contributed to PTSC South East Asia Private Limited with an amount of USD 16,320,000, equivalent to VND 340,800,232,500.
(IV) Joint venture PTSC Asia Pacific Private Limited is a jointly controlled venture company established in 2012 by the Corporation and its partner, Yinson Holding Berhad, under the Foreign Investment Certificate No. 561/BKHDT-DTRNN dated 19 October 2012 issued by the Ministry of Planning and Investment to contribute to investment capital in floating storage, production and processing of oil (FPSO) for Lam Son Joint Operating Company (“Lam Son JOC”) to rent to develop Blocks 01/97 and 02/97 of the low-lying delta in Vietnam’s water. The project has a total investment capital of USD 429,977,481, equivalent to VND 9,113,372,709,795, in which, the capital contribution of each party is USD 119,996,426 taking up 27.9% of the investment capital, the remaining is the borrowing capital. In which, the Corporation contributed USD 61,198,177, equivalent to VND 1,272,922,081,600, taking up 51% of the charter capital. As at 31 December 2016, the Corporation made capital contributions to joint venture PTSC Asia Pacific Private Limited with an amount of USD 51,000,000 equivalent to VND 1,069,026,300,000.
(V) Thi Vai General Port Joint Stock Company is a joint stock company which was established in accordance with Business Registration Certificate No. 3502259121 dated 21 July 2014 issued by Department of Planning and Investment of Ba Ria - Vung Tau Province with the registered charter capital of VND 60,000,000,000. PTSC Phu My Port Joint Stock Company holds 36% of charter capital of Thi Vai General Port Joint Stock Company in accordance with Business Registration Certificate. As a result, the Parent Company has an indirect ownership of 21.46% of charter capital of Thi Vai General Port Joint Stock Company. Based on Circular No. 202/2014/TT–BTC, as at 31 December 2016, Thi Vai General Port Joint Stock Company became an associate of the Corporation in accordance with the prevailing regulations.
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
142 143www.ptsc.com.vnANNUAL REPORT 2016
17. E
QU
ITY
INV
ESTM
ENTS
IN O
THER
EN
TITI
ES 3
1/12
/201
6 3
1/12
/201
5
Cos
t P
rovis
ion
Fai
r val
ue C
ost
Pro
visio
n F
air v
alue
VND
VND
VND
VND
VND
VND
Indoc
hina
Pet
roleu
m
Tran
spor
tatio
n Jo
int S
tock
C
ompa
ny (i
) -
- -
10,
000,
000,
000
6,4
00,0
00,0
00
3,6
00,0
00,0
00
Nho
n Tr
ach
Ship
yard
Join
t Sto
ck
Com
pany
3,0
00,0
00,0
00
613
,321
,535
2
,386
,678
,465
3
,000
,000
,000
4
68,7
57,6
19
2,5
31,2
42,3
81
Duye
n Ha
i Pet
roVi
etna
m
Inves
tmen
t and
Con
struc
tion
Join
t St
ock
Com
pany
37,
500,
000,
000
13
,450
,386
,878
2
4,04
9,61
3,12
2 3
7,50
0,00
0,00
0 6
,338
,584
,061
31
,161
,415
,939
High
tech
Con
cret
e Inv
estm
ent
Join
t Sto
ck C
ompa
ny 1
0,53
0,00
0,00
0
10,5
30,0
00,0
00
- 1
0,53
0,00
0,00
0 1
0,53
0,00
0,00
0 -
51,
030,
000,
000
24,
593,
708,
413
26,
436,
291,
587
61,
030,
000,
000
23,
737,
341,
680
37,2
92,6
58,3
20
(i) Ac
cord
ing
to R
esol
ution
No.
136
/NQ
-DVK
T-HDQ
T da
ted
2 Fe
brua
ry 2
015
of th
e Bo
ard
of D
irecto
rs of
Pet
roVi
etna
m T
echn
ical S
ervic
es C
orpo
ratio
n on
ap
prov
ing
capi
tal w
ithdr
awal
from
Indo
chin
a Pe
troleu
m T
rans
porta
tion
Join
t Sto
ck C
ompa
ny, a
s at
31
Dece
mbe
r 201
6, th
e C
orpo
ratio
n en
tirely
with
drew
the
capi
tal f
rom
Indo
chin
a Pe
troleu
m T
rans
porta
tion
Join
t Sto
ck C
ompa
ny b
y se
lling
shar
es to
othe
r sha
reho
lder
s on
the S
tock
Exc
hang
e.De
tails
of m
ovem
ent o
f pro
visio
n fo
r im
pairm
ent o
f lon
g-te
rm fi
nanc
ial i
nves
tmen
ts du
ring
the y
ear a
nd th
e pr
evio
us y
ears
wer
e as
follo
ws:
Amou
ntVN
DAs
at 0
1/01
/201
5 3
8,57
6,81
9,72
2 Pr
ovisi
on m
ade
for t
he y
ear
11,
038,
668,
464
Incre
ase
from
inve
sting
and
tran
sform
ing
form
of o
wne
rship
10,
530,
000,
000
Reve
rsal f
or th
e ye
ar (6
61,9
57,5
89)
Com
pens
atin
g fo
r dive
sted
inve
stmen
ts (3
5,74
6,18
8,91
7)As
at 3
1/12
/201
5 2
3,73
7,34
1,68
0 Pr
ovisi
on m
ade
for t
he y
ear
7,2
56,3
66,7
33
Reve
rsal f
or th
e ye
ar (1
,400
,000
,000
)C
ompe
nsat
ing
for d
iveste
d in
vestm
ents
(5,0
00,0
00,0
00)
As a
t 31/
12/2
016
24,
593,
708,
413
18. TRADE PAYABLES
31/12/2016 31/12/2015
Amount Amount ableto be paid off Amount Amount able
to be paid off
VND VND VND VND
a) Short-term trade payables
PTSC Asia Pacific Private Limited 423,650,464,009 423,650,464,009 416,809,680,000 416,809,680,000
Waterway Construction Consultants Joint Stock Company
337,619,339,653 337,619,339,653 - -
PTSC South East Asia Private Limited 287,344,889,040 287,344,889,040 218,518,898,640 218,518,898,640
SapuraKencana TL Offshore Sdn. Bhd 242,109,710,855 242,109,710,855 263,724,256,796 263,724,256,796
CGG Services (Singapore) Private Limited
134,469,045,326 134,469,045,326 66,068,595,467 66,068,595,467
PetroVietnam Exploration Production Corporation
132,535,870,219 132,535,870,219 145,554,690,702 145,554,690,702
CGG Services SA Corporation 112,836,799,432 112,836,799,432 49,156,712,427 49,156,712,427
Joint Venture Vietsovpetro 94,429,555,668 94,429,555,668 158,846,890,173 158,846,890,173
Lilama Corporation 93,800,866,366 93,800,866,366 24,765,202,868 24,765,202,868
Saipem Asia Sdn. Bhd 39,545,075,691 39,545,075,691 107,980,161,683 107,980,161,683
Others 2,153,497,282,184 2,153,497,282,184 2,903,887,212,670 2,903,887,212,670
4,051,838,898,443 4,051,838,898,443 4,355,312,301,426 4,355,312,301,426
b) Long-term trade payablesPetroVietnam Exploration Production Corporation
- - 66,267,935,109 66,267,935,109
The significant balances of trade payables to the related parties are presented in Note 44.
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
144 145www.ptsc.com.vnANNUAL REPORT 2016
19. ADVANCES FROM CUSTOMERS
20. TAXES AND OTHER RECEIVABLES FROM/PAYABLES TO THE STATE BUDGET
Short-term advances from customers as at 31 December 2016 mainly represent advancefrom Cuu Long Joint Operating Company for Su Tu Trang Full Field Project with the amount of VND 918,149,733,492 (as at 31 December 2015: VND 238,691,230,949) and other advances.
Long-term advances from customers as at 31 December 2016 mainly represent advance from Long Phu 1 Power Plant Management Board for Long Phu Power Plant Project with the amount of VND 791,695,089,681 (as at 31 December 2015: VND 1,051,381,785,330) and other advances.
31/12/2016 31/12/2015
VND VND
Value added tax 7,860,062,497 10,126,900,479
Corporate income tax 61,558,178,834 99,109,437,000
Personal income tax 20,378,121,072 22,078,518,431
Others 38,296,487,858 44,110,608,565
128,092,850,261 175,425,464,475
Details of the implementation of the State obligations according to each type of tax are as follows:
31/12/2015 Payable/adjustment during the year
Paidduring the year 31/12/2016
VND VND VND VND
VAT on domestic goods 10,126,900,479 181,587,829,667 183,937,189,466 7,777,540,680
VAT on imported goods - 44,465,885,579 44,465,885,579 -
Import-export duties - 9,518,904,373 9,518,904,373 -
Corporate income tax 59,132,803,497 157,989,589,078 206,556,951,661 10,565,440,914
Personal income tax 22,060,008,060 137,371,822,586 139,067,642,424 20,364,188,222
Resource tax - 349,200,000 349,200,000 -
Land tax 4,213,486,783 (903,902,463) 3,309,584,320 -
Exercise tax - 54,000,000 54,000,000 -
Other taxes 39,778,847,250 310,823,291,071 311,940,110,741 38,662,027,580
Others - 30,931,209 30,931,209 -
135,312,046,069 841,287,551,100 899,230,399,773 77,369,197,396
In which
Tax and other receivables from the State Budget
40,113,418,406 50,723,652,865
Taxes and amounts payable to the State budget
175,425,464,475 128,092,850,261
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
146 147www.ptsc.com.vnANNUAL REPORT 2016
21. SHORT-TERM ACCRUED EXPENSES
31/12/2016 31/12/2015
VND VND
Cost for Bien Dong Project 374,778,638,924 299,504,178,883
Cost for provision of Long Phu 1 Thermal Power Plant Project 231,128,430,307 231,128,430,307
Cost for Ca Mau GPP Project 217,880,698,572 1,889,144,760
Cost for Su Tu Nau Project 176,519,134,415 176,519,134,415
Cost for Long Phu 1 Thermal Power Plant Project 139,304,121,277 52,438,032,663
Cost for packages of Nghi Son Refinery and Petrochemical Complex Project 92,138,952,951 106,806,214,999
Cost for operating of CGG Amadues vessel, Binh Minh 02 vessel 85,944,577,772 97,166,073,548
Cost for NH3 Project 82,515,821,353 28,134,735,905
Cost for Maharaja Lela South Project (MLS) 69,191,265,079 15,736,205,478
Cost for Hai Su Trang Den Project 64,593,419,068 64,593,419,068
Cost for Daman Project 61,414,140,978 -
Cost for NPK Project 61,222,182,630 15,476,352,091
Cost for Su Tu Vang 6X Project 49,161,840,000 49,161,840,000
Cost for Thai Binh Ham Rong Project 44,429,260,212 202,090,860,645
Cost for Heera Ceter Technology Project (HRD) 37,188,998,400 51,597,502,775
Cost for Ghana Yinson Project 33,517,500,000 50,763,803,907
Cost for Bio Ethanol Project 29,150,440,587 28,542,446,554
Cost for H5 Topside Project 23,062,094,580 -
Cost for Ghana Kanfa Project 18,323,004,878 49,566,360,713
Cost for land rental at Nghi Son shipbuilding industry zone 15,000,000,000 10,000,000,000
31/12/2016 31/12/2015
Cost for Thai Binh T&I Project 14,771,393,352 14,771,393,352
Cost for seismic and geological servey services 9,926,180,478 17,475,490,781
Cost for dredging for water-front area of PTSC Supply Base 8,159,637,483 -
Cost for project of dredging Nghi Son port 8,117,122,541 10,740,479,804
Cost for marine services rendered to Bien Dong POC 6,920,255,989 15,513,795,645
Interest payables to PVEP due to receiving transfer of Binh Minh 02 vessel 6,626,793,514 9,940,190,266
Cost for land rental at Son Tra Harbour 6,335,686,568 -
Cost for operating of FPSO Lam Son, FSO Bien Dong 01, FPSO Ruby II 6,987,608,986 -
Cost for SOFEL Project 4,594,190,885 -
Interest expense payable to the credit institutions 3,369,463,919 9,550,821,209
Cost for Song Hau Power Plant construction 2,796,540,000 -
Cost of processing components for TSA rig 2,188,702,724 -
Cost for supplying materials to Dung Quat Oil Refinery 1,852,167,074 -
Cost for Su Tu Trang Full Field Project 24,287,000 48,547,509,167
Cost of service rendered to Talisman Vietnam Company Limited - 24,991,255,825
Cost for Dai Hung, Tam Dao 05, and Chim Sao Projects - 10,615,867,760
Maintenance cost of drilling rigs - 10,592,449,760
Cost for repair of PTSC 01 and POS 01 barges - 9,077,803,890
Other accruals 74,078,257,153 66,666,764,215
2,063,212,809,649 1,779,598,558,385
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
148 149www.ptsc.com.vnANNUAL REPORT 2016
22. OTHER PAYABLES
31/12/2016 31/12/2015
VND VND
a. Current payables
Vietnam Shipbuilding Industry Corporation (i) 411,828,898,922 402,177,441,565
Salary and bonus payables 52,392,565,726 35,020,333,214
Bien Dong Petroleum Operating Company 19,939,346,487 -
Dividend payable (ii) 15,145,283,073 12,285,493,723
Lam Son Joint Operating Company 13,980,607,544 -
Vietnam Waterway Construction Corporation (iii) 9,057,781,235 58,209,744,759
Withhold PIT of employees 8,347,896,267 8,814,464,483
PetroVietnam Construction Corporation (iii) 7,826,660,837 49,873,999,702
OffShore Limited Company 7,552,986,709 7,552,986,709
Trade union fee 7,324,055,689 2,687,070,993
Nordic Maritime Private Limited 6,837,000,000 6,762,000,000
Petroleum Domestic Exploration Production Operating Company - Block 05.1a 4,143,598,682 3,043,358,432
PISICO Quang Nam Joint Stock Company 4,000,000,000 -
Global Petroleum and Maritime Service Joint Stock Company 3,250,953,390 -
Social, health, unemployment insurance 2,604,992,170 105,550,648
Yen Son Diversified Company Limited 2,327,854,549 9,891,423,655
Petroleum Maritime Service Vietnam Joint Stock Company 2,033,551,487 -
(I) Payable to Vietnam Shipbuilding Industry Corporation is the last payment for the project of building FSO5 vessel; in which, the Corporation is the investor and Vietnam Shipbuilding Industry Corporation is the constructor.
(II) Dividend payable to shareholders represent dividend of the years which custody shareholders have not received.
(III) Payable to PetroVietnam Construction Corporation, Vietnam Waterway Construction Corporation is the payable amount related to the
project of dredging of Nghi Son port which are kept in accordance with the signed partnership agreement.
(IV) In 2016, the Corporation offset the receivable from Nhon Trach Shipyard Joint Stock Company and Dung Quat Shipbuilding Industry Company with the payable to Vietnam Oil and Gas Group relating to Nhon Trach Shipbuilding Factory Project according to the Official Dispatch No. 917/DVKT-TCKT dated 27 June 2016 sent to Vietnam Oil and Gas Group (as presented in Point ix, Note 9).
31/12/2016 31/12/2015
Malaysia Vietnam Offshore Terminal (Labuan) Limited 1,169,382,840 6,655,616,068
Short-term deposits received 839,713,197 508,838,739
PC Vietnam Limited 67,527,210 14,219,767,472
Vietnam Oil and Gas Group (iv) - 349,068,201,763
Cuu Long Joint Operating Company - 3,759,479,209
Asia Investment and Asset Management Join Stock Company - 1,880,480,066
Thang Long Securities Joint Stock Company - 3,078,500,783
Dung Quat Port Customs Department - 828,428,160
Others 45,264,816,492 61,673,358,602
625,935,472,506 1,038,096,538,745
b. Long-term payables
Long-term deposits received 204,067,385 203,242,385
204,067,385 203,242,385
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
150 151www.ptsc.com.vnANNUAL REPORT 2016
23. S
HO
RT-T
ERM
LO
AN
S
24. L
ON
G-T
ERM
LO
AN
S31/1
2/20
15Tr
ong
năm
31/1
2/20
16
Amou
ntAm
ount
abl
e to
be
paid
off
Incr
ease
sDe
crea
ses
Amou
ntAm
ount
abl
e to
be
paid
off
VND
VND
VND
VND
VND
VND
Cur
rent
porti
on o
f lo
ng-te
rm lo
ans
(Not
e 24
)68
4,34
7,40
4,25
868
4,34
7,40
4,25
848
4,28
1,11
7,96
9(7
36,4
81,3
56,6
71)
432,
147,
165,
556
432,
147,
165,
556
684,
347,
404,
258
684,
347,
404,
258
484,
281,
117,
969
(736
,481
,356
,671
)43
2,14
7,16
5,55
643
2,14
7,16
5,55
6
31/1
2/20
15In
the
year
31/1
2/20
16
Amou
ntAm
ount
abl
e to
be
paid
off
Incr
ease
sDe
crea
ses
Amou
ntAm
ount
abl
e to
be
paid
off
VND
VND
VND
VND
VND
VND
Viet
nam
Don
g 2
99,8
16,1
36,1
68
299
,816
,136
,168
3
3,58
7,75
0,00
0 (8
1,59
0,28
9,05
0)25
1,81
3,59
7,11
8 2
51,8
13,5
97,1
18
Unite
d St
ates
Do
llar
1,26
3,59
6,72
9,03
2 1
,263
,596
,729
,032
3
2,84
6,73
8,22
6 (4
04,7
48,4
53,1
26)
891,
695,
014,
132
891
,695
,014
,132
1,5
63,4
12,8
65,2
00
1,5
63,4
12,8
65,2
00
66,
434,
488,
226
(486
,338
,742
,176
)1,
143,
508,
611,
250
1,1
43,5
08,6
11,2
50
Long
-term
loan
s rep
rese
nt lo
ans i
n VN
D w
hich
wer
e ob
tain
ed fr
om th
e do
mes
tic c
omm
ercia
l ban
ks. T
hese
loan
s bea
r inte
rest
rate
s ran
ging
from
4.1
% to
9.3
% pe
r an
num
. Lon
g-te
rm lo
ans r
epre
sent
loan
s in
USD
whi
ch w
ere
obta
ined
from
the
dom
estic
com
mer
cial b
anks
and
the
bran
ches
of f
orei
gn b
anks
in V
ietna
m. T
hese
lo
ans b
ear i
ntere
st ra
tes r
angi
ng fr
om 1
.7%
to 5
.65%
per
ann
um. T
he p
urpo
se o
f the
long
-term
loan
s is t
o in
vest
in fi
xed
asse
ts in
cludi
ng p
ort,
oil a
nd g
as v
esse
l se
rvice
, spe
cializ
ed e
quip
men
t for
pet
roleu
m te
chni
cal s
ervic
es a
nd c
ontri
bute
the
capi
tal i
n jo
int v
entur
es o
f FSO
/FPS
O p
roje
cts w
ith fo
reig
n pa
rtner
s. Th
ese
loan
s are
gua
rante
ed b
y Vi
etna
m O
il an
d G
as G
roup
or a
re se
cure
d by
fixe
d as
sets
and
cons
tructi
on in
pro
gres
s for
med
from
the
loan
s as n
oted
in N
ote
12 o
r un
secu
red.
Long
-term
loan
s are
repa
yabl
e as
follo
ws:
31/
12/2
016
31/
12/2
015
VND
VND
With
in o
ne y
ear
432,
147,
165,
556
684,
347,
404,
258
In the
seco
nd y
ear
781,
851,
494,
483
1,08
9,89
0,97
2,98
6
In the
third
to fi
fth y
ear i
nclus
ive28
2,33
8,45
2,84
636
0,59
0,57
7,50
3
Afte
r five
yea
rs79
,318
,663
,921
112,
931,
314,
711
1,5
75,6
55,7
76,8
06
2,24
7,76
0,26
9,45
8
Less
: Am
ount
due
for s
ettle
men
t with
in 1
2 m
onths
(pre
sente
d in
Not
e 23
) (4
32,1
47,1
65,5
56)
(684
,347
,404
,258
)
Amou
nt d
ue fo
r set
tlem
ent a
fter 1
2 m
onth
s 1
,143
,508
,611
,250
1
,563
,412
,865
,200
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
152 153www.ptsc.com.vnANNUAL REPORT 2016
25. D
EFER
RED
TAX
LIA
BILI
TIES
The
follo
win
g ar
e the
def
erre
d ta
x as
sets
and
liabi
lities
reco
gnize
d by
the
Cor
pora
tion,
and
the
mov
emen
ts the
reon
, dur
ing
the c
urre
nt an
d pr
ior y
ears.
Accr
uals
and
othe
r pr
ovisi
ons
Unre
alise
dfo
reig
n ex
chan
gedi
ffere
nce
Unre
alise
dpr
ofit
Unea
rned
reve
nue
Accr
ued
cost
of sa
lesDe
prec
iatio
n of
fixed
ass
ets
Prof
it fro
mjo
int v
entu
rean
d as
socia
tes
Tota
l
VND
VND
VND
VND
VND
VND
VND
VND
As a
t 01
Janu
ary
2015
47,
407,
108,
444
(6,8
44,2
34,0
17)
3,7
13,3
89,2
59
- -
49,
281,
556,
595
(200
,715
,182
,175
) (1
07,1
57,3
61,8
94)
Cha
rged
to th
e co
nsol
idat
ed
inco
me
state
men
t(5
7,96
0,86
2,96
2) (3
,067
,396
,132
)(3
,447
,929
,304
) -
- (1
8,16
3,70
6,64
9) (8
8,47
6,54
0,77
2) (1
71,1
16,4
35,8
19)
Incre
ase
from
in
vesti
ng a
nd
trans
form
ing
form
of
ow
nersh
ip
- -
- -
- (4
,609
,223
,314
) -
(4,6
09,2
23,3
14)
As a
t 31
Dece
mbe
r 201
5 (1
0,55
3,75
4,51
8) (9
,911
,630
,149
) 2
65,4
59,9
55
- -
26,
508,
626,
632
(289
,191
,722
,947
) (2
82,8
83,0
21,0
27)
Cha
rged
to th
e co
nsol
idat
ed
inco
me
state
men
t(6
0,02
3,26
8,16
0)11
,643
,927
,890
(2
65,4
59,9
55)
9,00
4,43
1,14
0 (8
,586
,056
,140
) (1
5,58
2,33
2,05
4) (1
24,5
93,2
21,9
86)
(188
,401
,979
,265
)
As a
t 31
Dece
mbe
r 201
6 (7
0,57
7,02
2,67
8) 1
,732
,297
,741
-
9,0
04,4
31,1
40
(8,5
86,0
56,1
40)
10,
926,
294,
578
(413
,784
,944
,933
) (4
71,2
85,0
00,2
92)
Defe
rred
tax
asse
ts an
d lia
biliti
es h
ave
been
offs
et in
acc
orda
nce
with
the
prev
ailin
g ac
coun
ting
polic
ies f
or fi
nanc
ial r
epor
ting
purp
oses
as f
ollo
ws:
31/1
2/20
1631
/12/
2015
VND
VND
Defe
rred
tax
liabi
lities
-(49
2,94
8,02
3,75
1) -(
299,
103,
353,
096)
Defe
rred
tax
asse
ts 2
1,66
3,02
3,45
9 1
6,22
0,33
2,06
9
-(47
1,28
5,00
0,29
2) -(
282,
883,
021,
027)
As a
t 31
Dece
mbe
r 201
6, th
e su
bsid
iarie
s of t
he C
orpo
ratio
n ha
ve u
nsue
d ta
x lo
sses
ava
ilabl
e fo
r offs
et a
gain
st to
futur
e pr
ofits
as b
elow
s:- P
TSC
Qua
ng N
gai J
oint
Stoc
k C
ompa
ny o
f VN
D 31
1,12
2,58
4,33
1 (a
s at 3
1 De
cem
ber 2
015:
VN
D 37
8,07
6,92
2,65
3)- P
TSC
CG
GV
Geo
phys
ical S
urve
y C
ompa
ny Li
mite
d of
VN
D 87
6,16
8,71
9,55
1 (a
s at 3
1 De
cem
ber 2
015:
VN
D 45
9,08
0,08
1,87
5)
PTSC
Qua
ng N
gai J
oint
Stoc
k C
ompa
ny a
nd P
TSC
CG
GV
Geo
phys
ical S
urve
y C
ompa
ny Li
mite
d ha
ve n
ot re
cogn
ised
defe
rred
tax
asse
ts of
thes
e ta
x lo
sses
due
to th
e un
certa
inty
of fu
ture
prof
its to
utili
se th
ese
tax
loss
es.
26. LONG-TERM PROVISIONS
31/12/2016 31/12/2015
VND VND
Warranty provision for the construction works
- Bien Dong project 525,047,170,282 525,047,170,282
- Su Tu Nau project 305,716,586,414 305,716,586,414
- Hai Su Trang - Den project - 155,860,354,444
- Chim Sao project - 100,390,150,982
- Su Tu Vang 6X project 84,525,593,656 84,525,593,656
- HRD project 54,028,471,982 54,028,471,982
- Su Tu Trang project 46,462,217,152 30,492,733,169
- Thai Binh Ham Rong project - 9,844,800,000
- Maharaja Lela South project 132,446,433,030 -
- H05 Topside project 96,130,757,059 -
- Ghana Yinson project 55,087,141,058 -
- Ghana Kanfa project 19,702,996,906 -
- Quata project 6,464,616,021 -
Provisions for overhaul expenses of FPSO Lam Son vesse 30,097,918,150 15,048,959,075
1,355,709,901,710 1,280,954,820,004
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
154 155www.ptsc.com.vnANNUAL REPORT 2016
27. OWNERS’ EQUITY
Share 31/12/2016 31/12/2015
- Number of shares registered 446,700,421 446,700,421
- Number of shares issued to public 446,700,421 446,700,421
- Number of shares in circulation 446,700,421 446,700,421
The Corporation has only one type of ordinary share which carries no right to fixed income with par value of VND 10,000/share. The shareholders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at the Corporation’s shareholders’ meetings. All shares rank equally with regard to the Corporation’s net assets.
Details of the contributed capital as at 31 December 2016 and as at 31 December 2015 were as follows:
According to the amended Investment Certificate, the Corporation’s contributed capital is VND 4,467,004,210,000 (as at 31 December 2015: VND 4,467,004,210,000). As at 31 December 2016 and 31 December 2015, the capital was fully contributed by the shareholders as follows:
Contributed capital
31/12/2016 31/12/2015
% VND % VND
Vietnam Oil and Gas Group 51.38 2,295,000,000,000 51.38 2,295,000,000,000
Vina Capital Corporate Financial Vietnam Company Limited 5.29 236,174,220,000 6.12 273,403,700,000
FTIF-Templeton Frontier Markets Fund group 0.50 22,462,000,000 5.79 258,800,740,000
Dragon Capital Funds 7.94 354,833,500,000 3.98 177,988,500,000
Other shareholders 34.89 1,558,534,490,000 32.73 1,461,811,270,000
100.00 4,467,004,210,000 100.00 4,467,004,210,000
Mov
emen
t in
owne
rs’ e
quity
Ow
ners
’co
ntrib
uted
cap
ital
Sha
re p
rem
ium
Inve
stmen
t and
de
velo
pmen
t fun
dN
on-c
ontro
lling
inte
rests
Ret
aine
d ea
rnin
gsTo
tal
VND
VND
VND
VND
VND
VND
As a
t 01
Janu
ary
2015
4,46
7,00
4,21
0,00
039
,545
,660
,000
1,8
47,2
10,1
52,2
85
1,4
41,8
30,7
62,9
55
3,15
9,34
3,75
5,21
0 1
0,95
4,93
4,54
0,45
0
Cap
ital c
ontri
butio
n -
- -
3,2
80,0
00,0
00
- 3
,280
,000
,000
Adjus
tmen
t for
pu
rcha
sing
Sao
Mai
- Be
n Di
nh -
- 2
2,47
0,91
7,57
3 2
75,1
74,8
70,9
88
(22,
470,
917,
573)
275
,174
,870
,988
Prof
it fo
r the
yea
r -
- -
(23,
855,
903,
238)
1,51
7,39
4,76
0,70
4 1
,493
,538
,857
,466
Fund
app
ropr
iatio
n -
- 5
49,2
65,6
29,8
02
(22,
307,
884,
709)
(791
,595
,857
,165
) (2
64,6
38,1
12,0
72)
Divid
ends
pai
d -
- -
(50,
529,
500,
000)
(536
,040
,505
,200
) (5
86,5
70,0
05,2
00)
Othe
rs -
- (4
06,7
93,6
07)
3,3
69,2
63
(442
,689
,671
) (8
46,1
14,0
15)
As a
t 31
Dece
meb
er
2015
4,4
67,0
04,2
10,0
00
39,
545,
660,
000
2,4
18,5
39,9
06,0
53
1,6
23,5
95,7
15,2
59
3,32
6,18
8,54
6,30
5 1
1,87
4,87
4,03
7,61
7
Cap
ital c
ontri
butio
n -
- -
3,6
20,5
20,0
00
- 3
,620
,520
,000
Prof
it fo
r the
yea
r -
- -
(128
,998
,937
,135
)1,
038,
743,
379,
556
909
,744
,442
,421
Fund
app
ropr
iatio
n -
- 2
07,5
79,7
76,6
47
(12,
142,
920,
870)
(416
,017
,679
,948
) (2
20,5
80,8
24,1
71)
Divid
ends
pai
d -
- -
(55,
896,
450,
000)
(759
,390
,715
,700
) (8
15,2
87,1
65,7
00)
Othe
rs -
71,
400,
000
- 5
77,2
62,2
37
(567
,462
,238
) 8
1,19
9,99
9 As
at 3
1 De
cem
ber
2016
4,46
7,00
4,21
0,00
039
,617
,060
,000
2,62
6,11
9,68
2,70
01,
430,
755,
189,
491
3,18
8,95
6,06
7,97
511
,752
,452
,210
,166
Acco
rdin
g to
the
Reso
lutio
n No.
277
/NQ
-DVK
T-DHD
CD
date
d 28
Apr
il 201
6 of
the
Gen
eral
Mee
ting
of S
hare
hold
ers o
f Pet
roVi
etna
m Te
chni
cal S
ervic
es C
orpo
ratio
n,
the R
esol
ution
s of G
ener
al M
eetin
g of
Sha
reho
lder
s of s
ubsid
iarie
s, the
shar
ehol
ders
of th
e C
orpo
ratio
n ap
prov
ed th
e di
viden
d di
strib
ution
, app
ropr
iatio
n of
the
welf
are
and
bonu
s fun
ds a
nd in
vestm
ent a
nd d
evelo
pmen
t fun
d fro
m p
rofit
of 2
015.
Acco
rdin
g to
the
Reso
lutio
n N
o. 6
70/N
Q-D
VKT-H
DQT
date
d 21
Nov
embe
r 201
6, th
e Bo
ard
of D
irecto
rs of
Pet
roVi
etna
m T
echn
ical S
ervic
es C
orpo
ratio
n ap
prov
ed
the te
mpo
rary
adv
ance
of d
ivide
nd o
f 201
6 to
the
shar
ehol
ders
at th
e ra
te o
f 5%
of p
er p
ar v
alue
with
tota
l am
ount
of V
ND
223,
350,
210,
500.
As a
t 31
Dece
mbe
r 201
6, th
e C
orpo
ratio
n an
d the
sub
sidia
ries
appr
opria
ted
funds
, pa
id d
ivide
nd o
f 201
5 an
d te
mpo
rary
adv
ance
of d
ivide
nd o
f 201
6 to
sh
areh
olde
rs in
acc
orda
nce
with
pre
vailin
g re
gula
tions
.
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
156 157www.ptsc.com.vnANNUAL REPORT 2016
28. OFF BALANCE SHEET ITEMSForeign currencies:
31/12/2016 31/12/2015United States Dollar (USD) 82,501,397 120,476,279
Euro (EUR) 1,020,958 3,930
British Pound (GBP) 248,230 319,468
PTSC
Offs
hore
Se
rvice
s Joi
nt S
tock
Co
mpa
ny
PTSC
Pro
ducti
on
Serv
ices J
oint
St
ock
Com
pany
PTSC
Qua
ng
Nga
i Joi
nt S
tock
Co
mpa
ny
PTSC
Phu
My
Port
Join
t Sto
ck
Com
pany
PTSC
Tha
nh H
oa
Port
Join
t Sto
ck
Com
pany
Dinh
Vu
Petro
leum
Se
rvice
s Por
t Joi
nt
Stoc
k Co
mpa
ny
PTSC
CG
GV
Geo
phys
ical S
urve
y Co
mpa
ny Li
mite
d
Petro
Viet
nam
Se
curit
y Jo
int S
tock
Co
mpa
ny
Sao
Mai
- Be
n Di
nh P
etro
leum
In
vestm
ent J
oint
St
ock
Com
pany
Tota
l
Prof
it/(lo
ss) i
n the
ye
ar56
,894
,378
,457
53,9
82,4
48,5
3848
,892
,551
,243
36,9
27,5
72,4
3229
,292
,002
,105
4,50
0,29
9,58
2 (4
17,0
13,4
26,9
75)
15,4
08,0
84,4
7896
9,23
4,25
8 (1
70,1
46,8
55,8
82)
The
Cor
pora
tion’
s pr
ofit/
(loss
)48
,332
,770
,151
27,5
31,0
48,7
5446
,542
,612
,255
22,0
13,5
81,0
0016
,020
,747
,941
2,29
5,15
2,78
7 (2
12,8
02,4
31,3
72)
8,42
4,29
0,26
549
4,30
9,47
2 (4
1,14
7,91
8,74
7)
Non
-contr
ollin
g in
tere
sts’ p
rofit/
(loss
)8,
561,
608,
306
26,4
51,3
99,7
842,
349,
938,
988
14,9
13,9
91,4
3213
,271
,254
,164
2,20
5,14
6,79
5 (2
04,2
10,9
95,6
03)
6,98
3,79
4,21
347
4,92
4,78
6 (1
28,9
98,9
37,1
35)
29. N
ON
-CO
NTR
OLL
ING
INTE
REST
SN
on-co
ntrol
ling
inte
rests
repr
esen
ts ot
her s
hare
hold
ers’
shar
e to
the
subs
idia
ries’
net a
sset
s and
the
resu
lt fro
m o
pera
tion
of su
bsid
iarie
s. Th
e no
n-con
trollin
g in
tere
sts a
re
as fo
llow
s:
Non
-contr
ollin
g in
tere
sts in
subs
idia
ries’
prof
it an
d lo
ss d
urin
g the
yea
r are
as f
ollo
ws:
Unit:
VN
D
Unit:
VN
D
PTSC
Offs
hore
Se
rvice
s Joi
nt S
tock
Co
mpa
ny
PTSC
Pro
ducti
on
Serv
ices J
oint
Sto
ck
Com
pany
PTSC
Qua
ng
Nga
i Joi
nt S
tock
Co
mpa
ny
PTSC
Phu
My
Port
Join
t Sto
ck
Com
pany
PTSC
Tha
nh H
oa
Port
Join
t Sto
ck
Com
pany
Dinh
Vu
Petro
leum
Se
rvice
s Por
t Joi
nt
Stoc
k Co
mpa
ny
PTSC
CG
GV
Geo
phys
ical S
urve
y Co
mpa
ny Li
mite
d
Petro
Viet
nam
Se
curit
y Jo
int
Stoc
k Co
mpa
ny
Sao
Mai
- Be
n Di
nh P
etro
leum
In
vestm
ent J
oint
St
ock
Com
pany
Tota
l
Cha
rter c
apita
l of
subs
idia
ries
400,
000,
000,
000
200,
000,
000,
000
300,
000,
000,
000
350,
000,
000,
000
400,
000,
000,
000
400,
000,
000,
000
1,17
1,49
8,64
1,42
028
,786
,320
,000
500,
000,
000,
000
3,75
0,28
4,96
1,42
0
In w
hich
:
Attri
buta
ble
to th
e C
orpo
ratio
n33
9,80
7,00
0,00
010
2,00
0,00
0,00
028
5,58
1,00
0,00
020
8,64
5,00
0,00
021
8,77
3,00
0,00
020
4,00
0,00
0,00
059
7,81
7,10
4,00
015
,300
,000
,000
255,
000,
000,
000
2,22
6,92
3,10
4,00
0
Attri
buta
ble
to
Non
-contr
ollin
g in
tere
sts60
,193
,000
,000
98,0
00,0
00,0
0014
,419
,000
,000
141,
355,
000,
000
181,
227,
000,
000
196,
000,
000,
000
573,
681,
537,
420
13,4
86,3
20,0
0024
5,00
0,00
0,00
01,
523,
361,
857,
420
Perc
enta
ge o
f no
n-co
ntro
lling
inte
rests
15.0
5%49
.00%
4.81
%40
.39%
45.3
1%49
.00%
48.9
7%46
.85%
49.0
0%
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
158 159www.ptsc.com.vnANNUAL REPORT 2016
Non
-contr
ollin
g in
tere
sts in
subs
idia
ries’
net a
sset
s as a
t 31
Dece
mbe
r 201
6 ar
e as
follo
ws:
Unit:
VN
D
PTSC
Offs
hore
Ser
vices
Jo
int S
tock
Com
pany
PTSC
Pro
ducti
on
Serv
ices J
oint
Sto
ck
Com
pany
PTSC
Qua
ng N
gai
Join
t Sto
ck C
ompa
nyPT
SC P
hu M
y Po
rt Jo
int S
tock
Com
pany
PTSC
Tha
nh H
oa P
ort
Join
t Sto
ck C
ompa
ny
Dinh
Vu
Petro
leum
Se
rvice
s Por
t Joi
nt
Stoc
k Co
mpa
ny
PTSC
CG
GV
Geo
phys
ical S
urve
y Co
mpa
ny Li
mite
d
Petro
Viet
nam
Se
curit
y Jo
int S
tock
Co
mpa
ny
Sao
Mai
- Be
n Di
nh
Petro
leum
Inve
stmen
t Jo
int S
tock
Com
pany
Tota
l
Tota
l ass
ets
1,7
28,3
68,9
84,8
19
521
,881
,452
,022
8
86,1
05,5
86,7
69
524
,261
,639
,828
6
77,6
66,5
12,7
72
618
,234
,375
,419
1
,790
,391
,765
,850
13
7,99
9,02
5,93
5 8
19,1
19,4
61,4
66
7,7
04,0
28,8
04,8
80
Tota
l liab
ilitie
s 8
85,8
40,7
82,5
36
262
,905
,989
,889
8
85,6
51,5
71,1
30
114
,000
,506
,772
1
89,0
22,9
47,5
19
191
,273
,677
,306
1
,206
,349
,360
,643
8
8,34
9,08
5,92
9 2
59,3
36,0
69,3
80
4,0
82,7
29,9
91,1
04
Net
ass
ets
842
,528
,202
,283
2
58,9
75,4
62,1
33
454
,015
,639
4
10,2
61,1
33,0
56
488
,643
,565
,253
4
26,9
60,6
98,1
13
584
,042
,405
,207
4
9,64
9,94
0,00
6 5
59,7
83,3
92,0
86
3,6
21,2
98,8
13,7
76
Deta
il as
follo
ws:
Inves
tmen
t cap
ital
400
,000
,000
,000
20
0,00
0,00
0,00
0 3
00,0
00,0
00,0
00
350
,000
,000
,000
4
00,0
00,0
00,0
00
400
,000
,000
,000
1
,171
,498
,641
,420
2
8,78
6,32
0,00
0 5
00,0
00,0
00,0
00
3,7
50,2
84,9
61,4
20
Inves
tmen
t and
de
velo
pmen
t fun
d 3
08,7
42,9
64,2
35
6,2
11,9
78,4
09
4,7
07,2
50,5
51
23,
333,
560,
624
24,
762,
484,
050
10,
155,
240,
391
- 7
,766
,748
,200
4
4,06
0,62
2,69
2 4
29,7
40,8
49,1
52
Reta
ined
ea
rnin
gs/
(Acc
umula
ted
loss
) 1
33,7
85,2
38,0
48
52,
763,
483,
724
(304
,253
,234
,912
) 3
6,92
7,57
2,43
2 6
3,88
1,08
1,20
3 1
6,80
5,45
7,72
2 (5
87,4
56,2
36,2
13)
13,
096,
871,
806
15,
722,
769,
394
(558
,726
,996
,796
)
Non
-con
trollin
g in
tere
sts
Deta
il as
follo
ws:
Inves
tmen
t cap
ital
60,
193,
000,
000
98,
000,
000,
000
14,
419,
000,
000
141
,355
,000
,000
1
81,2
27,0
00,0
00
196
,000
,000
,000
5
73,6
81,5
37,4
20
13,
486,
320,
000
245
,000
,000
,000
1
,523
,361
,857
,420
Inves
tmen
t and
de
velo
pmen
t fun
d 4
6,46
0,41
3,11
5 3
,043
,869
,420
2
26,2
46,1
52
9,4
23,7
58,4
63
11,
219,
076,
742
4,9
76,0
67,7
92
- 2
,638
,026
,396
2
1,58
9,70
5,11
9 9
9,57
7,16
3,19
8
Reta
ined
ea
rnin
gs/
(Acc
umula
ted
loss
) 2
0,13
2,33
7,08
5 2
5,85
4,10
7,02
5 (1
4,62
3,42
4,64
7) 1
4,91
3,99
1,43
2 2
8,94
2,44
1,75
8 8
,234
,674
,284
(2
87,6
76,6
43,2
69)
4,3
34,5
28,2
03
7,7
04,1
57,0
03
(192
,183
,831
,127
)
126
,785
,750
,200
1
26,8
97,9
76,4
45
21,
821,
505
165
,692
,749
,895
2
21,3
88,5
18,5
00
209
,210
,742
,076
2
86,0
04,8
94,1
51
20,
458,
874,
598
274
,293
,862
,122
1
,430
,755
,189
,491
30. B
USI
NES
S A
ND
GEO
GRA
PHIC
AL
SEG
MEN
TSFo
r man
agem
ent p
urpo
ses,
the C
orpo
ratio
n is
curre
ntly
orga
nise
d in
to se
ven
oper
atin
g di
visio
ns a
s fol
low
s:
Busin
ess s
egm
ent
Ope
ratio
n
Mar
ine
servi
ces
Man
agem
ent,
busin
ess a
nd o
pera
tion
the te
chno
logy
servi
ce v
esse
lsFlo
atin
g sto
rage
and
offlo
adin
g (FS
O) a
nd Fl
oatin
g pr
oduc
tion
stora
ge a
nd
offlo
adin
g (FP
SO) s
ervic
esSu
pply
of F
loat
ing
stora
ge a
nd o
ffload
ing
(FSO
) an
d Flo
atin
g pr
oduc
tion
stora
ge a
nd
offlo
adin
g (FP
SO)
Seism
ic su
rvey,
geo
phys
ical a
nd g
eolo
gica
l sur
vey
and
subs
ea se
rvice
sSu
pply,
ope
ratio
n, m
anag
emen
t of s
eism
ic su
rvey v
esse
ls 2D
, 3D;
Geo
phys
ical a
nd g
eolo
gica
l su
rvey
servi
ces,
divin
g, a
nd su
bsea
servi
ces b
y us
ing R
emot
e op
erat
ed v
ehicl
e (RO
V)
Supp
ly ba
se se
rvice
sSu
pply
base
servi
ces,
offic
es re
ntal,
logi
stic
and
supp
ly ch
ain
man
agem
ent
Mec
hani
cal &
con
struc
tion
Fabr
icatio
n,
engi
neer
ing,
co
nstru
ction
, tra
nspo
rtatio
n an
d in
stalla
tion,
ho
ok-up
an
d co
mm
issio
ning
Repa
ir, m
ainte
nanc
e an
d in
stallm
ent o
il an
d ga
s pro
ject
Repa
ir, m
ainte
nanc
e, in
stall o
il an
d ga
s pro
jects
Othe
r ser
vices
Prov
idin
g ot
her s
ervic
es fo
r oil
and
gas i
ndus
try
The
Cor
pora
tion
has p
repa
red
the se
gmen
t rep
ort f
or se
ven
segm
ents
as fo
llow
:As
at 3
1 De
cem
ber 2
016:
Unit:
VN
D
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Item
sM
arin
e se
rvice
sFP
SO/F
SO se
rvice
sSe
ismic
surv
ey, G
eo
surv
ey a
nd S
ubse
a se
rvice
s
Supp
ly ba
sese
rvice
sM
echa
nica
l &
cons
tructi
on
Repa
ir, m
aint
enan
ce
and
insta
llmen
t oil
and
gas p
roje
ctO
ther
serv
ices
Elim
inat
ion
Tota
l
Asse
ts
Segm
ent a
sset
s 1
,805
,543
,455
,066
3,
852,
932,
368,
373
2,1
10,7
56,8
12,3
60
3,15
7,66
3,70
3,88
8 8
,358
,550
,376
,537
2
,276
,470
,855
,063
39
8,36
7,92
9,88
0 (2
,173
,675
,665
,819
)19
,786
,609
,835
,348
Inter
est i
n as
socia
tes
2,2
27,4
66,5
50,8
54
Unal
loca
ted
asse
ts 3
,527
,033
,440
,571
Con
solid
ated
as
sets
25,5
41,1
09,8
26,7
73
Liabi
litie
sSe
gmen
t lia
biliti
es 1
,007
,451
,943
,092
1,
539,
242,
668,
965
1,4
83,5
18,2
34,9
13
1,41
8,96
7,30
5,10
6 6
,838
,877
,716
,705
1
,752
,157
,269
,980
40
0,54
4,16
3,84
1 (2
,173
,675
,665
,819
)12
,267
,083
,636
,783
Unal
loca
ted
liabi
lities
1,5
21,5
73,9
79,8
24
Cons
olid
ated
lia
bilit
ies
13,7
88,6
57,6
16,6
07
160 161www.ptsc.com.vnANNUAL REPORT 2016
As a
t 31
Dece
mbe
r 201
5:Un
it: V
ND
Item
sM
arin
e se
rvice
sFP
SO/F
SO se
rvice
sSe
ismic
surv
ey, G
eo
surv
ey a
nd S
ubse
a se
rvice
s
Supp
ly ba
sese
rvice
sM
echa
nica
l &
cons
tructi
on
Repa
ir, m
aint
enan
ce
and
insta
llmen
t oil
and
gas p
roje
ctO
ther
serv
ices
Elim
inat
ion
Tota
l
Asse
ts
Segm
ent a
sset
s 1
,903
,208
,082
,362
3,
275,
134,
639,
378
2,56
1,20
9,97
4,52
7 3,
488,
666,
350,
843
8,7
95,0
33,1
18,1
90
2,75
6,83
1,97
7,63
2 4
43,6
32,1
13,7
30
(3,6
71,1
37,3
38,2
02)
19,5
52,5
78,9
18,4
60
Inter
est i
n as
socia
tes
1,6
86,6
83,8
96,1
16
Unal
loca
ted
asse
ts 5
,197
,790
,172
,318
Cons
olid
ated
as
sets
26,
437,
052,
986,
894
Liabi
litie
s
Segm
ent li
abilit
ies
1,1
66,4
76,6
27,5
29
1,44
1,51
5,45
6,08
8 1,
523,
995,
892,
922
1,81
5,00
2,50
2,37
5 7
,843
,459
,031
,566
1,
780,
713,
156,
457
259
,157
,543
,388
(3
,671
,137
,338
,202
) 2
,159
,182
,872
,123
Unal
loca
ted
liabi
lities
2,4
02,9
96,0
77,1
54
Cons
olid
ated
lia
bilit
ies
14,
562,
178,
949,
277
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Item
sM
arin
e se
rvice
sFP
SO/F
SO se
rvice
sSe
ismic
surv
ey, G
eo
surv
ey a
nd S
ubse
a se
rvice
s
Supp
ly ba
sese
rvice
sM
echa
nica
l &
cons
tructi
on
Repa
ir, m
aint
enan
ce
and
insta
llmen
t oil
and
gas p
roje
ctO
ther
serv
ices
Elim
inat
ion
Tota
l
Reve
nue
Exte
rnal
sales
2,10
4,37
6,81
0,11
4 3
,272
,368
,226
,710
1,2
94,0
90,5
51,3
97
1,45
3,23
2,28
0,80
8 9
,362
,057
,242
,016
7
42,2
78,1
83,0
20
453,
677,
228,
462
18,6
82,0
80,5
22,5
28
Inter
-segm
ent
sales
60,
794,
995,
550
352
,625
,674
,219
3
54,1
86,4
92,4
56
183
,516
,140
,160
1,
088,
213,
907,
472
1,0
75,5
65,8
74,1
66
159,
748,
887,
040
(3,2
74,6
51,9
71,0
62)
-
Tota
l rev
enue
2,1
65,1
71,8
05,6
64
3,6
24,9
93,9
00,9
29
1,6
48,2
77,0
43,8
53
1,6
36,7
48,4
20,9
68
10,
450,
271,
149,
488
1,8
17,8
44,0
57,1
86
613
,426
,115
,502
(3
,274
,651
,971
,062
) 1
8,68
2,08
0,52
2,52
8
Cost
of g
oods
so
ld
Exte
rnal
cos
t of
good
s sol
d1,
845,
740,
443,
944
3,1
33,6
16,9
29,0
99 1
,543
,248
,340
,464
1,
177,
889,
877,
569
9,1
46,0
94,3
11,4
45
605
,765
,273
,499
44
6,97
2,66
4,46
1 -
17
,899
,327
,840
,481
Inter
-segm
ent
cost
of g
oods
so
ld 6
0,50
5,91
1,41
5 3
52,6
25,6
74,2
19
354
,186
,492
,456
1
83,5
11,1
89,6
45
1,08
7,43
2,64
0,89
9 1
,075
,565
,874
,166
7
8,80
7,36
3,29
4 (3
,192
,635
,146
,094
) -
Tota
l cos
t of
good
s sol
d 1
,906
,246
,355
,359
3
,486
,242
,603
,318
1
,897
,434
,832
,920
1
,361
,401
,067
,214
1
0,23
3,52
6,95
2,34
4 1
,681
,331
,147
,665
5
25,7
80,0
27,7
55
(3,1
92,6
35,1
46,0
94)
17,
899,
327,
840,
481
Gro
ss p
rofit
Segm
ent p
rofit
258
,636
,366
,170
1
38,7
51,2
97,6
11
(249
,157
,789
,067
) 2
75,3
42,4
03,2
39
215
,962
,930
,571
1
36,5
12,9
09,5
21
6,7
04,5
64,0
01
- 7
82,7
52,6
82,0
47
Sellin
g an
d ad
min
istra
tive
expe
nses
- -
- -
- -
- -
632
,191
,183
,729
Net
pro
fit fro
m fi
nanc
ing
activ
ities
- -
- -
- -
- -
146
,726
,865
,967
Ope
ratin
g pr
ofit
- -
- -
- -
- -
297
,288
,364
,285
Prof
it fro
m o
ther
activ
ities
- -
- -
- -
- -
291
,741
,791
,741
Shar
e of
pro
fit of
as
socia
tes
- -
- -
- -
- -
667
,105
,854
,738
Prof
it be
fore
tax
- -
- -
- -
- -
1,2
56,1
36,0
10,7
64
Cor
pora
te
inco
me
tax
expe
nse
- -
- -
- -
- -
157
,989
,589
,078
Defe
rred
tax
expe
nse
- -
- -
- -
- -
188
,401
,979
,265
Prof
it fo
r the
ye
ar 9
09,7
44,4
42,4
21
For t
he y
ear e
nded
31
Dece
mbe
r 201
6 as
follo
ws:
Unit:
VN
D
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
162 163www.ptsc.com.vnANNUAL REPORT 2016
Item
sM
arin
e se
rvice
sFP
SO/F
SO se
rvice
sSe
ismic
surv
ey, G
eo
surv
ey a
nd S
ubse
a se
rvice
s
Supp
ly ba
sese
rvice
sM
echa
nica
l &
cons
tructi
on
Repa
ir, m
aint
enan
ce
and
insta
llmen
t oil
and
gas p
roje
ctO
ther
serv
ices
Elim
inat
ion
Tota
l
Reve
nue
Exte
rnal
sales
4,5
14,8
95,3
75,2
06
3,2
80,3
72,4
74,9
95
2,1
73,9
21,0
20,3
33
2,
190,
069,
141,
904
8,5
23,3
27,6
78,6
24
1,5
25,6
69,3
51,4
73
1,1
48,6
42,8
23,4
54
- 2
3,35
6,89
7,86
5,98
9
Inter
-segm
ent s
ales
271
,806
,781
,068
4
70,4
24,7
91,5
98
234
,844
,630
,188
3
81,9
02,0
48,4
95
1,7
87,8
28,4
76,9
29
2,7
92,7
77,3
04,8
64
174
,391
,181
,408
(6
,113
,975
,214
,550
) -
Tota
l rev
enue
4,78
6,70
2,15
6,27
4 3
,750
,797
,266
,593
2
,408
,765
,650
,521
2,
571,
971,
190,
399
10,3
11,1
56,1
55,5
53
4,3
18,4
46,6
56,3
37
1,3
23,0
34,0
04,8
62
(6,1
13,9
75,2
14,5
50)
23,3
56,8
97,8
65,9
89
Cost
of g
oods
sold
Exte
rnal
cos
t of
good
s sol
d 3
,954
,805
,225
,599
3
,121
,195
,633
,236
2
,232
,027
,304
,915
1,
696,
822,
422,
028
7,7
84,0
82,0
65,7
86
1,2
66,0
85,5
14,5
93
1,1
26,9
48,4
40,1
12
- 2
1,18
1,96
6,60
6,26
9
Inter
-segm
ent c
ost
of g
oods
sold
271
,806
,781
,068
4
70,4
24,7
91,5
98
234
,844
,630
,188
3
81,9
02,0
48,4
95
1,7
87,8
28,4
76,9
29
2,7
92,7
77,3
04,8
64
75,
079,
372,
410
(6,0
14,6
63,4
05,5
52)
-
Tota
l cos
t of
good
s sol
d4,
226,
612,
006,
667
3,5
91,6
20,4
24,8
34
2,4
66,8
71,9
35,1
03
2,07
8,72
4,47
0,52
3 9
,571
,910
,542
,715
4
,058
,862
,819
,457
1
,202
,027
,812
,522
(6
,014
,663
,405
,552
) 2
1,18
1,96
6,60
6,26
9
Gro
ss p
rofit
Segm
ent p
rofit
560
,090
,149
,607
1
59,1
76,8
41,7
59
(58,
106,
284,
582)
493
,246
,719
,876
7
39,2
45,6
12,8
38
259
,583
,836
,880
2
1,69
4,38
3,34
2 -
2,1
74,9
31,2
59,7
20
Sellin
g an
d ad
min
istra
tive
expe
nses
- -
- -
- -
- -
995
,039
,622
,266
Net
loss
from
fin
ancin
g ac
tivitie
s -
- -
- -
- -
- (1
37,4
04,0
92)
Ope
ratin
g pr
ofit
- -
- -
- -
- -
1,1
79,7
54,2
33,3
62
Prof
it fro
m o
ther
activ
ities
- -
- -
- -
- -
82,
139,
119,
807
Shar
e of
pro
fit of
as
socia
tes
- -
- -
- -
- -
753
,186
,652
,840
Prof
it be
fore
tax
- -
- -
- -
- -
2,0
15,0
80,0
06,0
09
Cor
pora
te in
com
e ta
x ex
pens
e -
- -
- -
- -
- 3
50,4
24,7
12,7
24
Defe
rred
tax
expe
nse
- -
- -
- -
- -
171
,116
,435
,819
Prof
it fo
r the
yea
r 1
,493
,538
,857
,466
For t
he y
ear e
nded
31
Dece
mbe
r 201
5 as
follo
ws:
The
Cor
pora
tion
mos
tly o
pera
tes i
n Vi
etna
m. C
onse
quen
tly, t
he C
orpo
ratio
n ha
s not
pre
sente
d the
geo
grap
hica
l seg
men
t rep
ort.
Unit:
VN
DFORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
31. REVENUE FROM GOODS SOLD AND SERVICES RENDERED
32. COST OF GOODS SOLD AND SERVICES RENDERED
33. PRODUCTION COST BY NATURE
34. FINANCIAL INCOME
Năm 2016 Năm 2015
VND VND
Sales of merchandise sold 1,624,986,787,184 2,565,739,077,774
Sales of services rendered 14,890,662,513,164 16,390,114,472,699
Sales of construction contracts 2,166,431,222,180 4,401,044,315,516
18,682,080,522,528 23,356,897,865,989
Năm 2016 Năm 2015
VND VND
Cost of merchandise sold 1,541,611,821,735 2,315,141,454,218
Cost of services rendered 14,256,260,104,589 14,879,189,270,119
Cost of construction contracts 2,101,455,914,157 3,987,635,881,932
17,899,327,840,481 21,181,966,606,269
Năm 2016 Năm 2015
VND VND
Raw materials and consumables 2,444,636,657,326 3,391,403,563,228
Labour 2,633,609,040,237 2,792,820,102,335
Depreciation and amortisation 870,764,893,967 904,020,669,964
Outsource services 11,783,501,132,741 14,333,198,900,369
Other expenses 581,774,435,998 817,982,142,865
18,314,286,160,269 22,239,425,378,761
Năm 2016 Năm 2015VND VND
Deposit interest and interest income from lending 224,475,761,923 162,246,149,733
Dividends and profits received 4,829,760,000 4,487,280,000 Foreign exchange gain 76,171,535,177 168,998,748,103 Others 844,756,962 42,215,758,002
306,321,814,062 377,947,935,838
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
164 165www.ptsc.com.vnANNUAL REPORT 2016
35. FINANCIAL EXPENSES
36. INCOME/(LOSS) FROM JOINT VENTURES, ASSOCIATES
2016 2015
VND VND
Interest expenses 55,841,878,387 70,937,160,828
Foreign exchange loss 91,244,218,513 210,494,663,049
Margin of investment in Petroleum Technical Services and Son Tra port Joint Stock Company - 41,557,748,054
Provision for impairment of long-term investments 5,856,366,733 10,376,710,875
Others 6,652,484,462 44,719,057,124
159,594,948,095 378,085,339,930
2016 2015
VND VND
PetroVietnam Marine Shipyard Joint Stock Company (115,317,926,850) 11,121,620,923
Rong Doi MV12 Private Limited (4,150,928,603) 14,883,742,658
Malaysia VietNam Offshore Terminal (Labuan) Limited 176,509,631,110 162,331,298,360
Vietnam Offshore Floating Terminal (Ruby) Limited 3,209,281,838 4,388,467,001
PTSC South East Asia Private Limited 300,134,789,896 288,171,011,414
PTSC Asia Pacific Private Limited 306,721,007,347 272,290,512,484
667,105,854,738 753,186,652,840
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
37. SELLING EXPENSES AND GENERAL AND ADMINISTRATION EXPENSES
2016 2015
VND VND
Selling expenses
Salary expenses 10,932,830,812 16,573,821,516
Advertising expenses 59,492,551,315 50,543,295,333
Others 21,534,571,055 31,454,522,248
91,959,953,182 98,571,639,097
2016 2015
VND VND
Admin expenses
Salary expenses 204,100,533,152 225,810,519,386
Out source service expenses 196,442,368,919 275,762,544,926
Social insurance, health insurance, union expenses 32,948,381,796 33,190,906,486
Depreciation expenses 37,291,526,969 43,589,942,951
(Reversal)/made provision (56,471,138,800) 103,406,731,337
Others 125,919,558,511 214,707,338,083
540,231,230,547 896,467,983,169
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
166 167www.ptsc.com.vnANNUAL REPORT 2016
38. OTHER INCOME
39. OTHER EXPENSES
2016 2015
VND VND
Revesal of payables related to Berth No, 1, 2 of Nghi Son Port - 39,338,750,137
Disposal of fixed assets 1,683,167,117 8,931,389,015
Penalty, compensation 37,601,960,689 13,942,533,529
Margin of investment to Sao Mai - Ben Dinh Petroleum Investment Joint Stock Company - 62,856,534,599
Income from supply of chemicals, oil lube to Lam Son Joint Operating Company - 4,478,813,641
Reversal of guarantee provision for projects 256,250,505,426 -
Others 8,616,216,493 15,010,249,115
304,151,849,725 144,558,270,036
2016 2015
VND VND
Additional tax and late payment 2,822,266,185 23,279,639,237
Penalty, compensation cost 1,441,926,682 2,311,431,381
Disposal of fixed assets 225,882,615 3,102,236,161
Welfare expense - 2,721,464,294
Construction expense of 266 Le Loi project - 11,792,020,639
Reversal insurance fee for FPSO Ruby II vessel from 09/6/2010 to 31/3/2011 - 4,626,828,036
Others 7,919,982,502 14,585,530,481
12,410,057,984 62,419,150,229
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
40. CURRENT CORPORATE INCOME TAX EXPENSE
2016 2015
VND VND
Profit before tax 1,256,136,010,764 2,015,080,006,009
Addition adjustments (916,429,441,856) 481,337,695,346
Deduction adjustments 453,948,876,143 (845,701,159,952)
Assessable income 793,655,445,051 1,650,716,541,403
Tax loss carried forward (66,954,338,322) (29,262,502,487)
Taxable income 726,701,106,729 1,621,454,038,916
Corporate income tax 145,340,221,346 356,719,888,562
Tax deductions (i) (4,965,726,656) (12,556,224,430)
Additional corporate income tax 17,933,091,784 6,261,048,592
Tax adjustments (317,997,396) -
Net current corporate income tax expense 157,989,589,078 350,424,712,724
The Parent Company and its subsidiaries are obliged to pay corporate income tax at the rate of 20% of its taxable income since 1 January 2016.
(i) Tax deductions primarily represent the exempted amount for 4 years from the first year of having taxable income and 50% reduction of the tax payable in the next 9 years of Dinh Vu Petroleum Services Port Joint Stock Company and PTSC Thanh Hoa Port Joint Stock Company.
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
168 169www.ptsc.com.vnANNUAL REPORT 2016
41. BASIC EARNINGS PER SHARE
42. OPERATING LEASE COMMITMENTS
The calculation of the basic earnings per share attributable to the ordinary equity holders of the Parent Company is based on the following data:
2016 2015
VND VND
Profit for the year attributable to ordinary shareholders of the Corporation 1,038,743,379,556 1,517,394,760,704
Less: Appropriation of bonus and welfare fund as budget 90,775,446,381 215,077,583,166
Profit for calculating basis earnings per share 947,967,933,175 1,302,317,177,538
Weighted average number of ordinary shares 446,700,421 446,700,421
Basic earnings per share 2,122 2,915
2016 2015
VND VND
Minimum lease payments under operating leases recognised in the consolidated income statement for the year
1,028,808,421,285 1,173,897,588,278
At the balance sheet date, the Corporation had outstanding commitments under non-cancellable operating leas-es, which fall due as follows:
31/12/2016 31/12/2015
VND VND
Within one year 572,211,593,275 619,232,648,790
In the second to fifth year inclusive 815,987,318,971 863,946,754,265
After five years 1,117,678,939,193 874,327,953,275
2,505,877,851,439 2,357,507,356,330
As at 31 December 2016, the Corporation had commitments under non-cancellable operating leases of ship; land in Vung Tau City for the purpose of building an office for PTSC Supply Base and PTSC Mechanical & Construction Company Limited; of land for the purpose of providing services of Phu My Port Joint Stock Company; Sao Mai – Ben Dinh Petroleum Investment Joint Stock Company of property for the purpose of hotel services of Petro Hotel Company Limited.
The ship leases are signed for a period from 1 year to 5 years since 2013. The land lease in Vung Tau City was signed for 50 years since 2002.
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
43. FINANCIAL INSTRUMENTS
Capital risk management
The Corporation manages its capital to ensure that the Corporation will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance.
The capital structure of the Corporation consists of net debt (borrowings disclosed in Note 23 and Note 24, offset by cash and cash equivalents) and equity attributable to shareholders of the Corporation (comprising owners’ contributed capital, share premium, investment and development fund and retained earnings).
Gearing ratio
The gearing ratio of the Corporation as at the balance sheet date was as follows:
Significant accounting policies
Details of the significant accounting policies and methods adopted (including the criteria for recognition, the bases of measurement, and the bases for recognition of income and expenses) for each class of financial asset, financial liability and equity instrument are disclosed in Note 4.
Closing balance Opening balance
VND VND
Borrowingst 1,575,655,776,806 2,247,760,269,458
Less: Cash and cash equivalents 5,883,669,671,740 7,991,387,356,724
Net debt - -
Equity 11,752,452,210,166 11,874,874,037,617
Net debt to equity ratio - -
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
170 171www.ptsc.com.vnANNUAL REPORT 2016
Categories of financial instruments
The Corporation has not determined fair value of its financial assets and liabilities as at the balance sheet date since there is no comprehensive guidance under Circular No. 210/2009/TT-BTC issued by the Ministry of Finance on 6 November 2009 (“Circular 210”) and other relevant prevailing regulations to determine fair value of these financial assets and liabilities. While Circular 210 refers to the application of International Financial Reporting Standards (“IFRS”) on presentation and disclosures of financial instruments, it did not adopt the equivalent guidance for the recognition and measurement of financial instruments, including application of fair value, in accordance with IFRS.
Financial risk management objectives
The Corporation has set up risk management system to identify and assess the risks exposed by the Corporation and designed control policies and procedures to manage those risks at an acceptable level. Risk management system is reviewed on a regular basis to reflect changes in market conditions and the Corporation’s operations.
Financial risks include market risk (including foreign currency risk, interest rate risk, share price risk and commodity price risk), credit risk and liquidity risk.
Market risk
The Corporation’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates, interest rates and prices.
Carrying amountClosing balance Opening balance
VND VNDFinancial assets
Cash and cash equivalents 5,883,669,671,740 7,991,387,356,724
Trade and other receivables 5,336,116,236,209 5,140,224,852,743
Loan receivables - 28,757,555,368
Financial investments 937,453,737,778 607,352,658,320
Deposits 10,647,044,637 31,971,408,873
12,167,886,690,364 13,799,693,832,028
Financial liabilities
Borrowings 1,575,655,776,806 2,247,760,269,458
Trade and other payables 4,606,699,068,194 5,427,466,442,539
Accrued expenses 2,063,212,809,649 1,779,598,558,385
Provisions 1,418,530,029,735 1,364,156,687,981
9,664,097,684,384 10,818,981,958,363
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Foreign currency risk management
The Corporation undertakes certain transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The Corporation has managed these risks by signing contract with customers with the respective currency with suppliers and adjust the selling price when there is significant fluctuation of exchange rate.
The carrying amounts of the Corporation’s foreign currency denominated monetary assets and monetary liabilities at the end of the year were as follows:
Foreign currency sensitivity analysis
The Corporation is mainly exposed to United States Dollar.
The following table details the Corporation’s sensitivity to a 2% increase and decrease in Vietnam Dong against USD. 2% is the sensitivity rate used when reporting foreign currency risk internally to the Board of Management and represents the Board of Management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year end for a 2% change in foreign currency rates. For a 2% increase/decrease in USD against Vietnam Dong, the Corporation profit before tax in the year would have increased/decreased by the same amount as follows:
Based on the similar analysis for other currencies, there is no significant impact on the results of operations of the Corporation.
Interest rate risk management
The Corporation has significant interest rate risks arising from interest bearing loans which are arranged. The Corporation is exposed to interest rate risk as the Corporation and its subsidiaries borrows at both fixed and floating interest rates. The risk is managed by the Corporation by maintaining an appropriate mix between fixed and floating rate borrowings..
Assets Liabilites
31/12/2016 31/12/2016 31/12/2016 31/12/2016
VND VND VND VND
United States Dollar (“USD”) 5,589,794,767,537 6,209,965,379,842 3,458,489,081,707 4,325,123,704,974
Bristish Pound (“GBP”) 6,916,415,798 30,156,577,071 35,371,625 4,290,141,023
Euro (EUR) 24,234,864,366 87,159,122 938,980,803 27,432,488,908
Singapore Dollar (“SGD”) - - 2,419,883,743 13,332,847,863
Current year Prior year
VND VND
United States Dollar (“USD”) 42,626,113,717 18,848,416,749
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
172 173www.ptsc.com.vnANNUAL REPORT 2016
Interest rate sensitivity
The loan’s sensitivity to interest rate changes which may arise at an appropriate level is presented as below. Assuming all other variables were held constant, if interest rates applicable to floating interest bearing loans had been 200 basis points higher/lower, the Corporation’s profit before tax for year ended 31 December 2016 would have decreased/ increased by VND 18,319,472,310 (for the year ended 31 December 2015: VND 44,955,205,389).
Share price risk management
The Corporation is exposed to equity price risks arising from investments in subsidiaries and associates. The Corporation’s Boad of Management assesses and approves decisions on investments in subsidiaries and associates such as operating industry, investees, etc. Investments in subsidiaries and associates are held for long-term strategic investments rather than trading purposes. The Corporation does not have intention to trade these investments in the foreseeable future.
Commodity price risk management
The Corporation purchases materials, commodities from local and foreign suppliers for business purpose. Therefore, the Corporation is exposed to the risk of changes in selling prices of materials, commodities.
Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Corporation. The Corporation has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The Corporation 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 year is kept to manageable levels relative to the amount of funds that the Corporation believes can generate within that year. The Corporation policy is to regularly monitor current and expected liquidity requirements to ensure that the Corporation maintains sufficient reserves of cash, borrowings and adequate committed funding from its shareholders to meet its liquidity requirements in the short and longer term.
The following table details the Company’s 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.
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The Board of Management assessed the liquidity risk at low level. The Board of Management believes that the Corporation will be able to generate sufficient funds to meet its financial obligations as and when they fall due.
Less than 1 year From 1- 5 years After 5 years TotalVND VND VND VND
31/12/2016Cash and cash equivalents 5,883,669,671,740 - - 5,883,669,671,740
Trade and other receivables 5,313,965,930,538 22,150,305,671 - 5,336,116,236,209
Loan receivables - - - - Financial investments 935,067,059,313 2,386,678,465 - 937,453,737,778 Deposits 1,194,377,020 9,452,667,617 - 10,647,044,637
12,133,897,038,611 33,989,651,753 - 12,167,886,690,364
31/12/2016Borrowings 432,147,165,556 1,064,189,947,329 79,318,663,921 1,575,655,776,806 Trade and other payables 4,606,495,000,809 204,067,385 - 4,606,699,068,194
Accrued expenses 2,063,212,809,649 - - 2,063,212,809,649 Provisions 92,918,046,175 1,325,611,983,560 - 1,418,530,029,735
7,194,773,022,189 2,390,005,998,274 79,318,663,921 9,664,097,684,384
Net liquidity gap 4,939,124,016,422 (2,356,016,346,521) (79,318,663,921) 2,503,789,005,980
Less than 1 year From 1- 5 years After 5 years TotalVND VND VND VND
31/12/2015Cash and cash equivalents 7,991,387,356,724 - - 7,991,387,356,724
Trade and other receivables 5,120,569,735,057 19,655,117,686 - 5,140,224,852,743
Loan receivables 28,757,555,368 - 28,757,555,368 Financial investments 570,070,000,000 37,282,658,320 - 607,352,658,320 Deposits 29,281,984,607 2,689,424,266 - 31,971,408,873
13,740,066,631,756 59,627,200,272 - 13,799,693,832,028
31/12/2015Borrowings 684,347,404,258 1,450,481,550,489 112,931,314,711 2,247,760,269,458 Trade and other payables 5,294,871,024,465 132,595,418,074 - 5,427,466,442,539
Accrued expenses 1,779,598,558,385 - - 1,779,598,558,385 Provisions 108,095,627,052 1,256,061,060,929 1,364,156,687,981
7,866,912,614,160 2,839,138,029,492 112,931,314,711 10,818,981,958,363
Net liquidity gap 5,873,154,017,596 (2,779,510,829,220) (112,931,314,711) 2,980,711,873,665
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
174 175www.ptsc.com.vnANNUAL REPORT 2016
44. RELATED PARTY TRANSACTIONS AND BALANCES
List of related parties Relationship
Vietnam Oil and Gas group Holding Company
Nghi Son Refinery and Petrochemical Complex Project Management Board Company in Group
Vung Ang - Quang Trach Power Plant Project Management Board Company in Group
Thai Binh II Power Plant Project Management Board Company in Group
Long Phu 1 Power Plant Project Management Board Company in Group
Dung Quat Oil Refinery Factory – Project Management Unit Company in Group
PetroVietnam Insurance Corporation Company in Group
Dung Quat Shipbuilding Industry Company Limited Company in Group
Binh Son Refining and Petrochemical Company Limited Company in Group
Vietnam Public Joint Stock Commercial Bank Company in Group
PetroVietnam General Service Joint Stock Corporation Company in Group
PetroVietnam Drilling and Well Services Corporation Company in Group
PetroVietnam Transportation Corporation Company in Group
PetroVietnam Construction Joint Stock Company Company in Group
PetroVietnam Energy Technology Corporation Company in Group
Drilling Mud Joint Stock Corporation Company in Group
PetroVietnam Gas Joint Stock Corporation Company in Group
PetroVietnam Fertilizer and Chemicals Joint Stock Corporation Company in Group
PetroVietnam Exploration Production Corporation Company in Group
PetroVietnam Manpower Training College Company in Group
PetroVietnam Engineering Corporation Company in Group
PetroVietnam Oil Corporation Company in Group
PetroVietnam General Service Joint Stock Corporation Company in Group
Petrovietnam Petrochemical and Textile Fiber Joint Stock Company Company in Group
PetroVietnam Ca Mau Fertilizer Joint stock Company Company in Group
PetroVietnam Power Corporation Company in Group
Bien Dong Petroleum Operating Company Company in Group
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
During the year, the Corporation entered into the following significant transactions with related parties:
2016 2015 VND VND
SalesPetroVietnam Gas Joint Stock Corporation 1,593,984,861,175 1,223,936,498,745 Long Phu 1 Power Plant Project Management Board 629,681,297,991 634,743,699,147 Vietnam Oil and Gas group 497,629,715,205 27,691,665,219 PetroVietnam Fertilizer and Chemicals Joint Stock Corporation 443,693,451,925 309,816,168,482 Binh Son Refining and Petrochemical Company Limited 314,966,474,648 239,466,159,790 PetroVietnam Drilling and Well Services Corporation 77,997,990,791 92,183,826,193
PetroVietnam Exploration Production Corporation 77,078,223,539 348,149,983,303 Drilling Mud Joint Stock Corporation 29,592,627,645 35,568,152,639 Dung Quat Shipbuilding Industry Company Limited 19,364,328,237 10,203,240,533 PetroVietnam General Service Joint Stock Corporation 17,736,795,865 21,701,614,724 PetroVietnam Ca Mau Fertilizer Joint stock Company 14,499,944,498 13,258,441,170 PetroVietnam Construction Joint Stock Company 12,229,344,280 58,978,595,640 PetroVietnam Manpower Training College 11,202,397,416 11,932,786,009 PetroVietnam Power Corporation 10,069,076,036 11,569,997,407 PetroVietnam Transportation Corporation 5,560,300,421 7,962,386,666 PetroVietnam Oil Corporation 1,944,948,213 1,269,717,999 Thai Binh II Power Plant Project Management Board 758,088,000 758,088,000 Vietnam Public Joint Stock Commercial Bank 725,614,949 283,613,637 PetroVietnam Insurance Corporation 589,378,845 81,614,545 Vung Ang - Quang Trach Power Plant Project Management Board
582,272,731 1,055,604,108
PetroVietnam Engineering Corporation 4,158,000 327,170,008
Nghi Son Refinery and Petrochemical Complex Project Management Board - 172,328,109,940
2016 2015 VND VND
Loan interestVietnam Public Joint Stock Commercial Bank 18,452,382,046 27,682,463,399
Remuneration of the Board of Directors, Board of Management and Board of Supervisors during the year as follows:
2016 2015 VND VND
Salary and benefits in kinds 14,523,115,000 14,379,173,230
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
176 177www.ptsc.com.vnANNUAL REPORT 2016
Significant related party balances as at the balance sheet date were as follows:
31/12/2016 31/12/2015 VND VND
Trade receivablesBien Dong Petroleum Operating Company 477,128,220,848 610,194,370,810 PetroVietnam Gas Joint Stock Corporation 291,425,001,609 161,969,108,539 PetroVietnam Fertilizer and Chemicals Joint Stock Corporation 172,978,117,164 73,573,917,895 PetroVietnam Exploration Production Corporation 121,244,498,956 188,288,143,102 Nghi Son Refinery and Petrochemical Complex Project Management Board 73,350,037,636 5,566,760,597
Long Phu 1 Power Plant Project Management Board 40,973,825,781 483,710,619,276 Binh Son Refining and Petrochemical Company Limited 36,676,914,093 31,623,836,255 PetroVietnam Drilling and Well Services Corporation 30,377,251,450 21,649,783,631 Drilling Mud Joint Stock Corporation 7,538,840,510 694,189,510 Dung Quat Shipbuilding Industry Company Limited 3,524,400,695 4,572,629,721 PetroVietnam Ca Mau Fertilizer Joint stock Company 3,190,491,561 1,101,169,794 PetroVietnam Construction Joint Stock Company 2,090,161,369 16,880,289,452 PetroVietnam General Service Joint Stock Corporation 1,820,941,473 1,816,549,869 PetroVietnam Manpower Training College 1,601,398,204 10,462,387,004 Vietnam Oil and Gas Group 1,159,136,846 774,874,440 PetroVietnam Transportation Corporation 1,036,817,183 2,969,848,022 PetroVietnam Power Corporation 496,953,710 459,689,267 PetroVietnam Oil Corporation 357,832,182 259,884,767
Advances to suppliersPetroVietnam General Service Joint Stock Corporation - 1,003,405,822 PetroVietnam Energy Technology Corporation - 1,171,233,209 PetroVietnam Gas Joint Stock Corporation - 4,678,763,094 PetroVietnam Fertilizer and Chemicals Joint Stock Corporation 165,000,000 - Drilling Mud Joint Stock Corporation 163,112,452 -
Other receivablesLong Phu 1 Power Plant Project Management Board 206,879,316,776 12,575,464,419 Vietnam Oil and Gas Group 59,514,542,073 40,811,003,545 Nghi Son Refinery and Petrochemical Complex Project Management Board 21,529,260,315 90,847,767,158
Bien Dong Petroleum Operating Company 16,690,612,452 12,624,211,512 PetroVietnam Exploration Production Corporation 329,077,036 - PetroVietnam Gas Joint Stock Corporation 155,200,000 - Dung Quat Shipbuilding Industry Company Limited - 355,560,293,062
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
31/12/2016 31/12/2015
VND VND
Trade payables
PetroVietnam Exploration Production Corporation 132,535,870,219 211,822,625,811
PetroVietnam Construction Joint Stock Company 93,800,866,366 24,765,202,868
PetroVietnam Drilling and Well Services Corporation 39,992,050,431 27,089,929,607
PetroVietnam General Service Joint Stock Corporation 26,290,563,147 91,491,347,204
PetroVietnam Gas Joint Stock Corporation 14,002,376,774 498,013,200
PetroVietnam Engineering Corporation 9,957,874,090 21,450,017,085
PetroVietnam Manpower Training College 6,787,941,876 2,201,815,875
PetroVietnam Oil Corporation 5,689,117,078 17,769,324,088
PetroVietnam Transportation Corporation 715,043,213 208,266,420
PetroVietnam Energy Technology Corporation 375,777,841 2,358,470,558
Dung Quat Shipbuilding Industry Company Limited 329,566,952 627,599,808
PetroVietnam Insurance Corporation 309,314,549 1,266,003,566
PetroVietnam Fertilizer and Chemicals Corporation 125,717,790 287,940,125
Advances from customers
Long Phu 1 Power Plant Project Management Board 791,695,089,681 1,051,381,785,330
PetroVietnam Fertilizer and Chemicals Corporation 216,400,185,333 312,666,955,829
PetroVietnam Gas Joint Stock Corporation 135,440,143,319 244,585,600,839
PetroVietnam Central Biofuels Joint Stock Company 50,466,725,642 50,466,725,642
Bien Dong Petroleum Operating Company - 76,022,200,000
Other payables
Vietnam Oil and Gas Group - 349,068,201,763
Bien Dong Petroleum Operating Company 19,939,346,487 -
PetroVietnam Construction Joint Stock Company 7,826,660,837 49,873,999,702
Long-term loans
Vietnam Public Joint Stock Commercial Bank 182,852,571,127 492,543,919,502
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
178 ANNUAL REPORT 2016
Supplemental non-cash disclosures
Dividend paid to shareholders excluded an amount of VND 15,145,283,073 which has not yet been paid as at 31 December 2016 (as at 31 December 2015: VND 12,285,493,723).
In addition, as at 31 December 2016, the profit and dividend received from investments excluded amount of VND 44,531,200,000 that has not yet received (as at 31 December 2015: VND 77,003,500,000); and the accrued interest income of VND 25,931,332,538 (as at 31 December 2015: VND 14,265,945,718).
These transactions do not have impact on the cash flows during the year and consequently, are not presented in the consolidated financial statements.
45. SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
46. COMPARATIVE FIGURES
Certain reclassifications have been made to the prior year’s figures to enhance their comparability with the current year’s presentation. Details are as follows:
Duong Thi Ngoc QuyPreparer
Nguyen Quang ChanhHead of Accounting Department
Phan Thanh TungPresident and CEO17 March 2017Ho Chi Minh City, S.R. Vietnam
Codes Previouslyreported amount Reclassification Amount after
reclassification
VND VND VND
1. Cash equivalents 112 4,013,766,200,897 (5,282,397,356) 4,008,483,803,541
2. Other long-term receivables 216 20,412,205,467 5,282,397,356 25,694,602,823
FORM B 09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
5th Floor, PetroVietnam Tower, 1-5 Le Duan Street, Ben Nghe Ward, District1, HCM City, VietnamTel: (+84).8.39102828 | Fax: (+84).8.39102929 | E-mail: [email protected]
www.ptsc.com.vn