Petrolimex holds Annual General Meeting of shareholders on Friday in Hà Nội. The group plans to sell 11.47 million cubic meters of petrol this year, equivalent to 83 per cent of the selling output in 2019. — Photo cafef.vn

HÀ NỘI — The Việt Nam National Petroleum Group (Petrolimex or PLX) forecast a drop in both revenue and profit this year due to the decline in demand amid the COVID-19 pandemic.

The information was released during its Annual General Meeting of shareholders held on Friday in Hà Nội.

The group targets to earn VNĐ122 trillion (US$5.3 million) in revenue, equivalent to 64 per cent of that recorded in 2019. Pre-tax profit is expected to reach VNĐ1.57 trillion, equalling 28 per cent of last year’s figure.

Petrolimex plans to sell 11.47 million cubic meters of petrol this year, equivalent to 83 per cent of the selling output in 2019. Dividend payout ratio for 2020 is forecast at 12 per cent.

The group’s general director Phạm Đức Thắng said the spread of the COVID-19 pandemic had caused a sharp decline in oil consumption worldwide due to blockades and travel restrictions.

“The oversupply of oil, rampant production by producers and an exhaustion of storage capacity drove West Texas Intermediate crude to a negative price for the first time in history, closing at -$37.63 per parrel on April 20,” he said.

From January 1, the use of new marine fuels will comply with the provisions of the World Maritime Organisation (IMO), causing the price of new fuels to increase by 50 per cent, making sea transport costs rise sharply in 2020 compared to 2019, Thắng said.

He added that in 2020, the group is focuses on the acceleration of the Mỹ Giang Power Center project to carry out trial operations in the fourth quarter of 2025.

The group will also develop a plan to reduce State capital to 51 per cent, reducing its holding in Petrolimex Insurance Joint Stock Company to 35.1 per cent and successfully merging PGBank and HDBank.

“In the past eight years operating as a joint stock company, Petrolimex has consistently achieve higher production and business results through years. However, in 2020, the COVID-19 pandemic has disrupted business and production activities of Vietnamese enterprises, including Petrolimex,” Hồ Sỹ Hùng, Deputy Chairman of the Việt Nam's Committee for State Capital Management told the meeting.

“It is necessary for Petrolimex to adjust the business targets in 2020. The Committee for State Capital Management will accompany and assist Petrolimex in carrying out the tasks of production, business and development investment in 2020,” Hùng said. — VNS