Petrolimex's profits set to fall this year

Monday, May 26, 2014 16:25

Customers fill up at a Petrolimex gas station. The company's pre-tax profits are set to decline this year. — Photo

HA NOI (Biz Hub) ― Viet Nam's National Petroleum Group (Petrolimex)'s pre-tax profits are expected to reach VND2 trillion, or US$95.24 million, this year, marking a1 per cent fall over last year.

Company general director Tran Van Thinh announced this in a business plan at a shareholder meeting on May 24, explaining that domestic demand is falling and petroleum dealers are competing fiercely to grab market shares.

The authorities' tightening of the temporary import and re-export activities will restrict sales and push up expenses for dealers.

Costs will also increase as the use of the clean bio-gasoline E5 has been made compulsory from December 1, 2014, following Prime Minister Nguyen Tan Dung's order.

The order is being implemented in Ha Noi, Hai Phong, Da Nang and HCM cities and the Quang Ngai and Ba Ria–Vung Tau provinces this year, and will be expanded to other localities next year, so additional investments are needed.

The total investments for this year are estimated at VND891 billion, or $42.43 million, up 58 per cent over last year.

In 2014, the company expects to sell about 9.23 million cubic metres of petroleum in both the domestic and international markets, gaining VND200 trillion, or $9.52 billion, in total turnover.

On May 24, the Petrolimex shareholders approved dividend rates between 8 and 10 per cent for this year, down from over 12 per cent last year.

Petrolimex has about 52 per cent of the domestic petroleum market. It also deals in insurance, transportation and construction. ― VNS

Comments (0)