The information was released during its general annual meeting of shareholders held in Ha Noi on Monday.

Petrolimex's petrol output for sale in 2020 reached 12.39 million cu.m tonnes, exceeding 8 per cent of the yearly plan. Revenue totalled VND123.9 trillion, exceeding 2 per cent of the yearly plan, pre-tax profit reached VND1.41 trillion, only completing 90 per cent of the yearly plan. Dividend rate was 12 per cent in cash.

Last year was a particularly difficult year in production and business for the enterprise, said Petrolimex.

Due to the influence of the COVID-19 pandemic as well as geopolitical factors in some hotspots around the world, world oil prices had unusual fluctuations, it said.

For the first time in history on April 20 last year, the oil price dropped to a negative level for WTI oil for some futures contracts in May 2020. The petroleum business worldwide faced difficulties, losses and many oil fields and refineries had to close.

The year 2020 also witnesses consecutive and irregular natural disasters and floods that heavily affected the provinces in the central region. Competition in the domestic petroleum business market was increasingly fierce, especially through intermediaries, it said.

In 2017, the Prime Minister issued Decision 1232/QD-TTg, under which the State planned to divest capital at Petrolimex from 75.85 per cent to 51 per cent, said Petrolimex Chairman Pham Van Thanh.

Then in 2020, the Government again issued Decision No 908/QD-TTg to replace Decision 1232 and the divestment schedule set out in 2020, he said.

However, this plan was once again adjusted as recently, the Prime Minister has issued a document directing the Ministry of Planning and Investment to co-ordinate with The Commission for the Management of State Capital at Enterprises (CMSC) to develop an appropriate roadmap for divestment in large enterprises, including Petrolimex.

Petrolimex is still waiting for the direction and guidance from CMSC to implement the plan, according to Thanh.

Currently, Petrolimex is hiring professional consulting firms including legal advisors, offering consultancy and appraisal for the company’s stake value at Petrolimex Group Commercial Joint Stock Bank (PG Bank).

The Group was also reporting to have consulted specialised management agencies such as the State Bank and CMSC to complete procedures related to this divestment. They plan to complete the divestment of 40 per cent of the stake in PG Bank this year.

At the end of the first quarter, sales volume reached nearly 3.3 million cu.m, of which domestic sales reached nearly 2.3 million cu.m, fulfilling 25 per cent of the yearly target.

Retail sales reached 1.4 million cu.m, an increase of 6.6 per cent compared to 2020. Estimated profit is expected to reach more than VND900 billion. It lost VND1.7 trillion in the same period in 2020. — VNS