Petrolimex Petrochemical Corporation (PLC) has lowered its profit after tax target for 2023 to VNĐ112 billion (US$4.6 million), down 30 per cent from the previous expectation. — Photo baodautu.vn

HÀ NỘI  — Petrolimex Petrochemical Corporation (PLC) has lowered its profit after tax target for 2023 to VNĐ112 billion (US$4.6 million), down 30 per cent from the previous expectation.

Accordingly, the company's Board of Directors plans to submit to the General Meeting of Shareholders for approval the adjustment of the 2023 annual business plan.

Of which, it reduced this year's sales revenue plan to nearly VNĐ8.4 trillion, down 5.7 per cent from the original target but keeps the output target unchanged.

Profit after tax target is expected to decrease by 30 per cent to VNĐ112 billion.

The leading asphalt producer in the domestic market said that the impact of factors related to the economic situation, interest rate and exchange rate policies had affected its production and business activities.

Since August, exchange rates had ticked higher, influencing and increasing the company’s financial costs. Input costs remained at high levels while the average selling price of products tended to decrease during the year.

PLC is known as the leading enterprise in the industry, accounting for 30 per cent of the country's asphalt market share.

Analysts expected that the company would benefit from the Government’s disbursement of public investment capital from now to 2025.

However, the company’s sales progress of the asphalt segment depends on the progress of public investment disbursement. And the asphalt paving stage often happens in the final stages of public investment projects.

In the first nine months of 2023, PLC recorded VNĐ5.77 trillion in net revenue and VNĐ81 billion in profit after tax, down 4 per cent and 26 per cent year-on-year, respectively.

Compared to the adjusted plan, the enterprise has achieved 69 per cent of the revenue target and 72 per cent of the yearly profit target.

To complete the full year plan, PLC will have to reach more than VNĐ2.6 trillion in revenue and VNĐ31 billion in net profit in the fourth quarter, equivalent to nearly 37 per cent growth in profit compared to the same period last year.

This is not an easy goal amid the slow speed of public investment disbursement. — VNS