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Petrol firm Petrolimex reports a loss of VNĐ1.9 trillion

Update: May, 07/2020 - 07:28

People buy fuel at a Petrolimex station in Hà Nội. — Photo

HÀ NỘI — The Vietnam National Petroleum Group (Petrolimex) reported a loss of nearly VNĐ1.9 trillion (US$80.75 million) in the first quarter of 2020 as consumption was dampened by the coronavirus outbreak.

Total revenue was nearly VNĐ39.5 trillion while production costs exceeded VNĐ38 trillion. Gross profit margin fell by 5.3 percentage points to 3.7 per cent in the first quarter from 9 per cent in the first three months of 2019.

In the first quarter of 2019, Petrolimex recorded revenue of nearly VNĐ42 trillion and post-tax profit of nearly VNĐ1.3 trillion.

According to the firm, the spread of the coronavirus cut demand for travel and transportation, reducing the use of petroleum products by 30-40 per cent year-on-year.

In addition, a two-third decline in oil prices in the first quarter made the firm reduce petrol selling prices and increase the provision for inventories to VNĐ1.5 trillion.

US crude West Texas Intermediate (WTI) fell 66 per cent in the first quarter to end March at $22.74 a barrel. Petrol retail prices in Viet Nam dropped to a 13-year low to near VNĐ10,000 per litre.

In early March, Petrolimex targeted revenue of VNĐ186 trillion and pre-tax profit would be VNĐ5.38 trillion, down from last year’s figures of VNĐ189.6 trillion and VNĐ5.77 trillion.

But if the coronavirus is not controlled soon this year, earnings may drop by VNĐ12.5 trillion in total revenue and by VNĐ1.14 trillion in total pre-tax profit.

Two other petroleum producers – PetroVietnam Oil Corporation (PV Oil) and Bình Sơn Refining and Petrochemical Corporation (BSR) – also reported losses in the first quarter of the year.

PV Oil recorded a net loss of VNĐ538 billion compared to a profit of VNĐ31 billion in Q1 2019.

The firm reported a 4 per cent year-on-year increase in net revenue, which reached VNĐ17.7 trillion ending March but high expenses made PV Oil suffer a loss in the first quarter.

In 2020, PV Oil expects revenue will fall 35 per cent on-year to VNĐ52.2 trillion and post-tax profit will slump 114 per cent on-year to VNĐ376 billion.

BSR reported revenue of nearly VNĐ18 trillion and a loss of VNĐ2.34 trillion in the first quarter of the year.

Petrolimex shares (HoSE: PLX) jumped 3.8 per cent to end Wednesday at VNĐ41,950 per share. PV Oil shares (UPCoM: OIL) and BSR shares (UPCoM: BSR) rose 5.4 per cent and 1.7 per cent to end Wednesday at VNĐ7,800 and VNĐ6,000 per share. — VNS

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