Petrolimex sees robust growth in profit in Q1

Thursday, May 02, 2024 13:53

People buy gasoline at Petrolimex. — VNS Photo Mai Hương

Petrolimex has recently reported positive performance in the first quarter of the year and is expected to see opportunities to expand market share.

The company's first quarter consolidated financial statement showed that its net revenue increased by 11 per cent over the last year to over VNĐ75.1 trillion (US$2.9 billion), while gross profit rose by 31 per cent to nearly VNĐ4.7 trillion.

After deducing expenses, Petrolimex's profit before tax surged nearly 72 per cent to VNĐ1.4 trillion. Profit after tax reached over VNĐ1.1 trillion, up 70 per cent from the same period last year.

The growth in profit after tax was primarily attributed to the stable and growing performance of petroleum and other business operations.

Petrolimex said that energy supply and global oil prices have remained stable, with no significant fluctuations as in previous years. The domestic supply of petroleum products from local refineries has been relatively steady, as traders adhere to planned import purchases to ensure efficiency. Its financial operating profit has also increased from the same period last year.

As of March 31, Petrolimex's total assets stood at over VNĐ80.7 trillion, a 1 per cent increase from the beginning of the year. Cash, cash equivalents and bank deposits amounted to around nearlyVNĐ25.1 trillion, marking a decrease of VNĐ3.53 trillion from the start of the year.

Meanwhile, its total liabilities were VNĐ50.4 trillion, down VNĐ54 billion compared to the beginning of the year. The total borrowing amounted to VNĐ16.6 trillion and the equity reached VNĐ30.3 trillion.

According to SSI Research, Petrolimex is expected to gain market share in 2024 by stricter controlling fuel distribution activities.

Major distributors, Hai Hà Petro and Xuyen Viet Oil had their licences revoked and fuel customs clearance suspended due to non-compliance as key traders and violations related to tax debts and improper fund usage. The two companies generated approximately VNĐ40 trillion in revenue in 2022.

Petrolimex has also benefitted from the Government's requirement for electronic invoices in petroleum retail transactions, aimed at increasing transparency in Việt Nam's fuel industry.

The company has been a pioneer in implementing electronic invoicing at its 2,700 retail locations since mid-2023. This new regulation positions Petrolimex to potentially gain market share in the coming period.

Currently, only about 36 per cent of the 17,000 domestic retail units have adopted electronic invoicing as of early February. Gasoline stations that fail to comply may risk losing their licences. — VNS

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