The Van Phong petroleum bonded warehouse in Khanh Hoa Province expects to not have accumulated losses, returning to normal business in 2018, according to an official of the National Petroleum Group (Petrolimex).

Petrolimex chief accountant Luu Van Tuyen said in 2017, Van Phong petroleum bonded warehouse achieved pre-tax profit of VND160 billion. However, according to the monitoring report of Petrolimex, the warehouse has currently experienced accumulated losses of some VND120-130 billion after minusing net profit of 2017.

Tuyen said with the positive prospects for the warehouse business next year, it expects to not incur accumulated losses in 2018.

Tuyen said at present, Petrolimex has increased its shares at the Van Phong Petroleum Bonded Warehouse Joint Stock Company to 85 per cent from 51.4 per cent after Petrolimex Singapore Pte Ltd transferred its capital amounting to $14 million at the warehouse company to Petrolimex.

The Ministry of Industry and Trade approved this transaction under current regulations.

The Van Phong petroleum bonded warehouse began operations in June 2012 with total investment capital of $125 million and total capacity of 505,000cu.m.

However, according to Petrolimex, in 2012 alone, Van Phong Petroleum Bonded Joint Stock Company suffered a loss of VND170 billion. Since it was a new warehouse, the leasing did not reach the designed capacity. Leased capacity reached 20 per cent in 2013 and 43 per cent in the first half of 2014. — VNS