Gasoline prices skyrocketed, Petrolimex’s revenue reached the highest level ever, but profits fell deeply
The Vietnam National Oil and Gas Group (Petrolimex) has just announced its financial report for the first quarter of 2022 with the largest net revenue ever, reaching more than VND 67,000 billion. This number increased 75% year-on-year and 36% higher than the previous quarter.
Although revenue increased to a record high, Petrolimex’s profit dropped sharply over the same period, to only 571 billion dong before tax and 442 billion dong after tax, -44% and -40% respectively.
Explaining this, Petrolimex said that in the first quarter of 2022, solutions to cope with the Covid-19 epidemic in many countries have been promoted effectively, production, business, and trade activities in the country and the world have been improved. The step back to normal pace has led to a significant increase in gasoline consumption demand.
In addition, the conflict between Russia and Ukraine broke out, causing problems with energy supply. Accordingly, the world oil price (WTI) tends to fluctuate strongly from 75.88 USD/barrel at the beginning of the quarter, to 102.07 USD/barrel at the end of the quarter (equivalent to an increase of 35%). at the beginning of March, up to 128 USD/barrel.
At the same time, in the first quarter of 2022, Nghi Son refinery and petrochemical plant cut production output to below 55-80% of capacity and had a period of time having technical problems that had to stop production, unable to meet output. commitments under the (long-term) contracts signed with key petroleum traders.
Therefore, at times when the world gasoline price increased continuously and remained at a high level, the pressure on gasoline demand poured into Petrolimex – a state-owned enterprise that plays a key role in distribution in the market. domestic.
Therefore, in order to ensure uninterrupted supply and timely response to domestic demand, Petrolimex must change its import and purchase plan, seek immediate supply at high prices from suppliers. other, causing the gross profit margin of petroleum business to decrease compared to the same period in 2021.
As of March 31, 2022, Petrolimex’s inventory was VND 24,253 billion, an increase of more than VND 11,000 billion compared to the beginning of the year (+81%). Total assets of the group increased by more than VND 18,000 billion (+28%) to VND 83,212 billion.
Corresponding to the increase in assets, Petrolimex also increased its short-term payables to sellers, from nearly VND 16,000 billion to nearly VND 32,000 billion.
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