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