The sharp falls in revenue, profit and the value of shares of liquefied petroleum gas (LPG) firms make people think LPG is no longer an attractive business field for investors.
According to ACB Securities, the annual growth rate of LPG firms has always been high at 20 percent in the last 20 years, since the early 1990s. It believes that LPG witnessed stronger and more stable growth than any other business field in the years since 2011.
A report of the Electronic Industries Association (EIA) showed that the CAGR (compound annual growth rate) of the LPG market reached 28 percent from 1991 to 2011.
The LPG market with high annual growth rate has seen many merger and acquisition (M&A) deals since 2007.
Anpha Petrol became a well-known name after it bought a 51-99 percent stake of Hoang Minh Private Enterprise, which owned Dakgas brand, and LPG Minh Thong, which owned JP Gas and Gia Dinh Gas, within four months in 2007.
After the deals, famous investors, namely Japan-Vietnam Growth Fund LP, Sojitz, SK Securities, became Anpha Petrol’s shareholders.
Three years ago, Shell Group transferred all of its Shell Gas Hai Phong’s and Shell Gas Vietnam’s stakes to Siam Gas, the second largest LPG distributor in Thailand which holds 30 percent of the Thai market share, with 70,000 tons a month.
Shell Gas Hai Phong and Shell Gas Vietnam were two of three legal entities of Shell Eastern Petroleum Singapore in Vietnam.
The stake transfer deals made by a series of big players in recent years has led to big changes in the Vietnamese LPG market.
2014 was considered a prosperous year for LPG firms with the share prices increasing sharply. However, it did not last long. Just one year later, LPG firms’ shares were excluded from the list of shares attractive to investors.
The sharp fall of the oil prices in the world and the quality problems in the domestic market both have forced the big LPG players, including GAS, PV Gas South and Anpha Petrol, to restructure their sale networks and change their business strategies.
PV Gas South in 2015 paid higher attention to boost retail and implement contracts on making 20kg gas tanks for foreign partners so as to optimize its production line.
In an effort to cut expenses on intermediaries, PV Gas South has set up a 7,700 ton depot and developed LPG distribution points in cities and provinces.
Meanwhile, Anpha Petrol has bought 98 percent of Binh Minh Company, the largest retail network in Vietnam, to develop an LPG distribution network in HCM City.
According to ACB Securities, the annual growth rate of LPG firms has always been high at 20 percent in the last 20 years, since the early 1990s. It believes that LPG witnessed stronger and more stable growth than any other business field in the years since 2011.
A report of the Electronic Industries Association (EIA) showed that the CAGR (compound annual growth rate) of the LPG market reached 28 percent from 1991 to 2011.
The LPG market with high annual growth rate has seen many merger and acquisition (M&A) deals since 2007.
Anpha Petrol became a well-known name after it bought a 51-99 percent stake of Hoang Minh Private Enterprise, which owned Dakgas brand, and LPG Minh Thong, which owned JP Gas and Gia Dinh Gas, within four months in 2007.
After the deals, famous investors, namely Japan-Vietnam Growth Fund LP, Sojitz, SK Securities, became Anpha Petrol’s shareholders.
Three years ago, Shell Group transferred all of its Shell Gas Hai Phong’s and Shell Gas Vietnam’s stakes to Siam Gas, the second largest LPG distributor in Thailand which holds 30 percent of the Thai market share, with 70,000 tons a month.
Shell Gas Hai Phong and Shell Gas Vietnam were two of three legal entities of Shell Eastern Petroleum Singapore in Vietnam.
The stake transfer deals made by a series of big players in recent years has led to big changes in the Vietnamese LPG market.
2014 was considered a prosperous year for LPG firms with the share prices increasing sharply. However, it did not last long. Just one year later, LPG firms’ shares were excluded from the list of shares attractive to investors.
The sharp fall of the oil prices in the world and the quality problems in the domestic market both have forced the big LPG players, including GAS, PV Gas South and Anpha Petrol, to restructure their sale networks and change their business strategies.
PV Gas South in 2015 paid higher attention to boost retail and implement contracts on making 20kg gas tanks for foreign partners so as to optimize its production line.
In an effort to cut expenses on intermediaries, PV Gas South has set up a 7,700 ton depot and developed LPG distribution points in cities and provinces.
Meanwhile, Anpha Petrol has bought 98 percent of Binh Minh Company, the largest retail network in Vietnam, to develop an LPG distribution network in HCM City.
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