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Petrolimex revises pre-tax profit target

Update: May, 27/2014 - 08:45

HA NOI  (VNS) — Stakeholders of the Viet Nam National Petroleum Group (Petrolimex) last Saturday agreed on the goal of the aggregated pre-tax profit for this year to be 1 per cent lower than last year.

Speaking at the annual general meeting of shareholders, general director of Petrolimex Tran Van Thinh stated that the targeted profit for this year was lowered, at VND2trillion (US$95.2 million), due to the projected decreasing petrol demand as well as the harsh competition among wholesalers in the domestic market.

The temporarily tightened import for re-exporting will push up costs, impacting the group's competitiveness, he added.

Costs will also arise from investments in developing a distribution system for biofuel E5, which was compulsory in seven provinces–Ha Noi, Hai Phong, Da Nang, Quang Ngai, HCM City, Ba Ria-Vung Tau and Can Tho–from the beginning of December. Biofuel E5 business will then be expanded in 2015.

At its shareholders' meeting on Saturday, Petrolimex expected to sell around 9.23 million cubic metres of petrol and oil this year, with a total turnover of VND200 trillion ($9.5 billion), 2 per cent higher than last year.

The group also targeted the dividend payout ratio for this year to be no less than bank interest rates, which will be around 8–10 per cent this year.

The petrol and oil business, Petrolimex's core business besides investments in insurance, transportation, services and construction, brought the group a profit of VND849 billion ($40.4 million) last year after a loss of VND125 billion ($5.9 million) in 2012.

Petrolimex reported a total turnover of VND51.8 trillion ($2.46 billion) and VND337 billion ($16.04 million) in pre-tax profit in the first quarter of this year.

Petrolimex's chairman Bui Ngoc Bao reported at the meeting that the group would be listed on the stock exchange by next year as it was currently raising charter capital and seeking a strategic partner. — VNS

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