Petrolimex Hits Record Quarterly Revenue Over $5 Billion Amid Oil Price Surge

Vietnam's Petrolimex has achieved a record quarterly revenue of over 136 trillion Vietnamese dong (more than 5 billion USD) in the second quarter, amidst significant fluctuations in oil prices influenced by Middle East conflicts. This marks the highest revenue since the leading domestic oil and gas retailer began disclosing information. Petrolimex's revenue surged in a volatile energy market. Domestic retail prices for gasoline and oil products hit their peak in early April, with RON95-III gasoline reaching 26,970 VND per liter before its discontinuation on June 1, and diesel at 44,780 VND per liter. After deducting costs, Petrolimex reported a pre-tax profit of over 3.3 trillion VND. This result is a significant improvement from the first three months of the year, during which the company incurred a net loss of more than 660 billion VND due to provisions for inventory when oil prices rose due to the conflict. For the first half of the year, the oil giant's revenue approached 235 trillion VND (nearly 9 billion USD). On average, the company generated nearly 1.3 trillion VND daily, 1.5 times that of the same period last year. Pre-tax profit was approximately 2.87 trillion VND, a 43% increase compared to the first half of the previous year. In its financial statement, Petrolimex's leadership attributed the profit increase primarily to exceeding sales volume targets and the reversal of inventory devaluation provisions. Prudent management of inventory, supply balancing, and risk management of oil price volatility also minimized adverse impacts on business performance. The company also noted significant contributions from its international business units and subsidiaries specializing in aviation fuel, petrochemicals, gas, warehousing, and insurance. Compared to its consolidated revenue plan of 330.3 trillion VND and pre-tax profit target of 3.37 trillion VND, Petrolimex had achieved 72% of its revenue and 84% of its profit targets by the end of the first half of the year. Pressure from inventory reserves shows signs of easing. As of the end of June, Petrolimex recorded over 20.6 trillion VND in inventory, a decrease of about 15.6 trillion VND from the previous quarter. Provisions for inventory impairment were only around 400 billion VND, down from over 6.5 trillion VND. Earlier, during the period of sharp price fluctuations due to Middle East tensions, Petrolimex had to adjust its import plans and seek immediate supply sources to compensate for shortages among smaller distributors. The company accepted immediate delivery from suppliers at higher spot prices and surcharges. Specifically, surcharges for diesel reached 35-40 USD per barrel, and for gasoline, 12-15 USD, compared to the usual 2.5-3 USD. Petrolimex management stated that at one point, they maintained inventory of nearly 1 million cubic meters/tons, 1.3 times the regulated amount, to ensure uninterrupted domestic supply. When oil prices began to fall continuously and significantly, the company faced the risk of devaluing its purchased inventory, leading to losses in the first quarter. Source: VnExpress