JX Nippon Oil & Energy from Japan may face a fall in the dividends from Vietnam's biggest petrol distributor Petrolimex this year compared to last year’s massive harvest due to downward revisions in the firm’s audited financial statement.

JX Nippon Oil may continue to receive sweet fruits from Petrolimex?

Last August, the petroleum giant paid a total of VND3.736 trillion ($165.7 million) in cash dividends for 1.16 billion outstanding shares. With the pay-out ratio of 32.24 per cent, each Petrolimex shareholder received VND3,224 ($0.14) per share.

At the time, JX Nippon Oil, with a holding of 103,528,476 shares (accounting for 8 per cent of the outstanding shares), received a cash dividend of VND333.7 billion, tantamount to $14.8 million.

Thereby, with positive business outcomes following the restructuring of Petrolimex, JX Nippon Oil could taste the sweet fruits of its investment after a single year. 

Previously, in April 2016, after nearly two years of negotiations, JX Nippon Oil officially acquired 8 per cent of Petrolimex’s shares for around ¥20 billion ($183 million).

However, this year Nippon Oil may not enjoy as large a dividend according to the audited financial statement.

Notably, according to the audited consolidated financial statement, the after-tax profit of Petrolimex increased VND72.1 billion ($3.16 million) compared to the figure declared by the firm. However, its assets were reduced by VND4.78 trillion ($209.8 million), or 7 per cent, and its equity decreased by 4 per cent, equalling VND875.4 billion ($38.4 million).

In addition, the consolidated profit of Petrolimex decreased by VND1.24 trillion ($54.4 million), equalling 24 per cent, to VND3.91 trillion ($171.6 million).

In November 2017, Petrolimex witnessed a sharp drop in share prices after a vast wave of investors started selling its stocks and setting up stock discounts, following the drop in profitability since April 2017.

Petrolimex is a Hanoi-based company founded in 1956. The petroleum provider primarily operates in petroleum trading, transportation, gas, and petrochemicals. It also provides design and engineering, as well as commercial, insurance, and banking services.

VIR