Petrolimex doubles profit and about to go public

November 15, 2016 | 22:08

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Vietnam National Petroleum Group (Petrolimex), in which Nippon Oil and Energy Corporation holds 8 per cent, reported a significant rise in profit in the third quarter and is going to submit all documents needed to list its stocks by the end of this year.

Petrolimex’s consolidated financial report for the third quarter showed that revenue decreased by 11 per cent on-year to VND29.27 trillion ($1.31 billion), but the cost of goods sold decreased by 13 per cent to VND25.9 trillion ($1.16 billion), compared to the VND29.76 trillion ($1.33 billion) in the same period last year. As a result, the corporation's net profit doubled to VND1.06 trillion ($47.5 million).

In the first nine months of the year, Petrolimex’s revenue decreased by 22 per cent on-year because the WTI crude price averaged at $41.31 per barrel, down 19 per cent compared to the same period last year. The parent company's net profit was VND2.96 trillion ($132.7 million), up 55 per cent on-year.

The consolidated pretax profit was VND4 trillion ($179.3 million), up 60 per cent on-year. Of this, gasoline trading contributed VND2.3 trillion ($103 million), accounting for 57.3 per cent. Return on equity was 15.8 per cent.

As of the end of September, Petrolimex's asset value stood at VND51 trillion. It invested VND2.3 trillion ($103.13 million) in its subsidiaries.

In the remainder of 2016, besides finishing procedures to list, leaders of the company said it would divest from its real estate arm PLAND JSC. They would also propose to the owner a plan to restructure Petrolimex’s gasoline and fuel distribution operations.

The company is also preparing a new gasoline and fuel sales plan to meet the requirements stated in prime ministerial Decision 49/2011/QD-TTg on the emission criteria for new cars and motorbikes.

In April, Petrolimex reached an agreement to sell an 8 per cent stake to Japanese JX Nippon Oil and Energy Corporation.

Petrolimex currently holds 55 per cent of the domestic petroleum retail market. The Ministry of Industry and Trade earlier decided that it would decrease the state's stake in the company to somewhere between 65 and 75 per cent.