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Monday , October 26 2020

‘Joint Kuwait, Japan, Vietnam project is running into losses’

‘Financial indicators not promising’

KUWAIT CITY, Feb 22: The financial statements sent by PetroVietnam Company to the Governmental Capital Management Committee, which clarified the company’s investments in the Vietnam Refinery Project (Nghi Son), revealed the joint project between Kuwait, Japan and Vietnam continues to record losses, and its financial indicators are not promising, reports Al-Anba daily.

According to data and the semi-annual financial reports for 2019 submitted by PetroVietnam to the Governmental Capital Management Committee, PetroVietnam, whose investment in Nghi Son Refinery amounts to 12.6 billion Vietnamese dong (approximately $550 million), announced the ‘evaporation’ of more than half of its investments in the refinery after a year and a half, explaining in the report that it lost up to 45 percent of the value of its investment in the Nghi Son refinery after a year and a half.

In its report, PetroVietnam indicated the company faced many difficulties in the Nghi Son refinery project, which continues to record losses. Accordingly, as of the end of June 2019, the company invested 5785 billion Vietnamese Dong, equivalent to approximately $250 million, in the Nghi Son Refinery compared to the investment cost of 12.669 billion Vietnamese Dong (equivalent to $545 million).

The company stated that PetroVietnam will be responsible for compensating the difference to the refinery within 10 years if Vietnam reduces the import tax to less than the preferential level, according to the agreement concluded with Nghi Son Joint refinery. The company reiterated the group had many difficulties in paying taxes due to product consumption in the refinery project.

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