Petrol firm Petrolimex reports a loss of VND1.9 trillion

The Vietnam National Petroleum Group (Petrolimex) reported a loss of nearly VND1.9 trillion (US$80.75 million) in the first quarter of 2020 as consumption was dampened by the coronavirus outbreak.  

People buy fuel at a Petrolimex station in Ha Noi. — Photo daidoanket.vn

Total revenue was nearly VND39.5 trillion while production costs exceeded VND38 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 VND42 trillion and post-tax profit of nearly VND1.3 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 VND1.5 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 VND10,000 per litre.

In early March, Petrolimex targeted revenue of VND186 trillion and pre-tax profit would be VND5.38 trillion, down from last year’s figures of VND189.6 trillion and VND5.77 trillion.

But if the coronavirus is not controlled soon this year, earnings may drop by VND12.5 trillion in total revenue and by VND1.14 trillion in total pre-tax profit.

 

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

PV Oil recorded a net loss of VND538 billion compared to a profit of VND31 billion in Q1 2019.

The firm reported a 4 per cent year-on-year increase in net revenue, which reached VND17.7 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 VND52.2 trillion and post-tax profit will slump 114 per cent on-year to VND376 billion.

BSR reported revenue of nearly VND18 trillion and a loss of VND2.34 trillion in the first quarter of the year.

Petrolimex shares (HoSE: PLX) jumped 3.8 per cent to end Wednesday at VND41,950 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 VND7,800 and VND6,000 per share. — VNS

Local petroleum firms forecast plunging revenue in 2020

Local petroleum firms forecast plunging revenue in 2020

Pressed by COVID-19 and the oil price war between Russia and the OPEC, local petroleum manufacturers expect great plunges in revenue.

 
 

Other News

.
Vietnam needs US$8-10 billion for electricity investment annually
Vietnam needs US$8-10 billion for electricity investment annually
BUSINESSicon  08/09/2020 

Given the increasing demand for electricity, Vietnam needs US$8-10 billion for electricity investment annually, Minister of Industry and Trade Tran Tuan Anh said at a meeting on Monday, September 7.

Thu Duc City set to be new growth pole for HCM City
Thu Duc City set to be new growth pole for HCM City
BUSINESSicon  09/09/2020 

Like Gangnam south of the Han River in Seoul and Pudong east of the Huangpu River in Shanghai, Thu Duc City is expected to become a new growth area for HCM City.

Nam Dinh-based Rang Dong Textile Industrial Park sign land lease contracts with foreign firms
Nam Dinh-based Rang Dong Textile Industrial Park sign land lease contracts with foreign firms
BUSINESSicon  08/09/2020 

The signing ceremony of a land lease contract and land delivery for factory construction between Cat Tuong Real Estate Group, Top Textile Co., Ltd and Jehong Textile Viet Nam Co, Ltd took place on September 4.

Ministry proposes overhaul of investment framework for power projects
Ministry proposes overhaul of investment framework for power projects
BUSINESSicon  08/09/2020 

The National Assembly's economic committee held a hearing on the development of Vietnam's energy sector until 2030 yesterday.

Mooncake producers begin selling well before Mid-Autumn Festival
Mooncake producers begin selling well before Mid-Autumn Festival
BUSINESSicon  08/09/2020 

The Mid-Autumn Festival is a time for mooncakes, a baked pastry that symbolises family reunions and which is traditionally consumed as part of the...

Vietnam to face power shortages
Vietnam to face power shortages
BUSINESSicon  08/09/2020 

Vietnam would face the risk of power shortages from 2021-25 due to slow progress at many large power projects both in the northern and southern...

Biggest business stories: August 31 to Sep 6
Biggest business stories: August 31 to Sep 6
BUSINESSicon  08/09/2020 

Big changes were made with the key personnel of Quoc Cuong Gia Lai Group, while the president of Hoang Anh Gia Lai Group, Doan Nguyen Duc, has not been able to escape difficulties despite his efforts to sell assets to pay debts.

Multi-trillion VND helps VN-Index regain peak
Multi-trillion VND helps VN-Index regain peak
BUSINESSicon  07/09/2020 

The strong cash flow to the stock market in recent days has helped stock prices bounce back.

Online shopping sees record growth, ranked 3rd in region
Online shopping sees record growth, ranked 3rd in region
BUSINESSicon  08/09/2020 

The total number of visits to online shopping apps in Vietnam reached 12.7 billion in the first six months of the year, the highest ever figure.

Vietnamese rice takes bite out of global market
Vietnamese rice takes bite out of global market
BUSINESSicon  07/09/2020 

Vietnam’s rice exports have expanded during the pandemic to surpass rival Thailand in price for the first time in three decades, leading experts to suggest the sector should consolidate its position.

Plastics industry shrugs off pandemic, interests stock investors
Plastics industry shrugs off pandemic, interests stock investors
BUSINESSicon  07/09/2020 

The new wave of Covid-19 infections has caused heavy pressure on the country’s economy. 

EU competition in redrawn public procurement landscape
EU competition in redrawn public procurement landscape
BUSINESSicon  07/09/2020 

Competition in Vietnam’s government procurement market is expected to heat up with the involvement of EU contractors, driven by the country’s highest-ever market-opening commitment in this field. 

Alibaba.com rolls out export-focused program for Vietnamese SMEs
Alibaba.com rolls out export-focused program for Vietnamese SMEs
BUSINESSicon  07/09/2020 

Alibaba.com, the global business-to-business (B2B) e-commerce platform of Alibaba Group, has launched a landmark initiative to help businesses in Vietnam go online and reach an enormous pool of qualified global buyers.

Profit taking to weigh on local market, but September may be bright
Profit taking to weigh on local market, but September may be bright
BUSINESSicon  07/09/2020 

Vietnam’s stock market rally may slow this week as investors eye profits but the one-month projection is still optimistic.

E-commerce gives impetus to woodworking sector
E-commerce gives impetus to woodworking sector
BUSINESSicon  06/09/2020 

In the rapid development of e-commerce, online stores and factories are one of the solutions with which enterprises can cope with the prolonged Covid-19 pandemic while laying a foundation for digitalized business

Key public investment projects gather speed
Key public investment projects gather speed
BUSINESSicon  07/09/2020 

Amid the government’s rush to push up public investment as one of the key pillars for economic growth, numerous projects have been accelerating their progress to match the plan set forth, 

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 8
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 8
BUSINESSicon  08/09/2020 

Solar power developers acquire massive profit in short time

ASEAN aiming for tech-led innovation to foster growth
ASEAN aiming for tech-led innovation to foster growth
BUSINESSicon  07/09/2020 

ASEAN countries are becoming a rising hub destination for global manufacturers thanks to well-established trade networks, a growing middle class, a thirst for tech expansion, and a young and educated workforce.

Logistics groups strive to exploit EVFTA potential
Logistics groups strive to exploit EVFTA potential
BUSINESSicon  07/09/2020 

The EU-Vietnam Free Trade Agreement has created a new driving force for Vietnam’s logistics, but the industry needs to take further action to unlock its full potential.

The path to economic recovery and further growth
The path to economic recovery and further growth
BUSINESSicon  06/09/2020 

While Vietnam has experienced an unprecedented boom in recent decades, the current pandemic is now having a clear negative impact on the economic outlook. 

 
 
 
Leave your comment on an article

OR QUICK LOGIN