Petrolimex official admits profits fall short of target

August 22, 2013 | 14:51

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Deputy General Director Tran Ngoc Nam told local press that profit from trading remained low for Viet Nam National Petroleum Corporation (Petrolimex).

Paints are produced at Petrolimex Paints Company Limited, a member of Petrolimex. The group has reported low profits from trading. VNA/VNS Photo Quach Lam

He attributed the low profit from domestic fuel trading to the Government's target to curb inflation, stabilise the macro economy and ensure social security.

The deputy general director affirmed the poor earnings after many local newspapers quoted Petrolimex's financial report from the first half of this year and its whopping pre-tax profit of VND898 billion (US$42.69 million).

Profit from trading fuel accounts for VND388 billion ($18.4 million) or 43 per cent of the total sum with an average of VND94 per litre. It is followed by earnings from the Petrolimex subsidiaries with VND302 billion ($14.3 million) or 34 per cent.

This figure reached 46.27 per cent of this year's shareholder approved plan. Still, earning falls quite short of the full-year target of the country's largest fuel wholesaler at VND1.98 trillion ($94.2 million) in 2013. With only 45 per cent of the plan covered, Petrolimex said it will exert efforts to make it in the second half of this year.

Nam said it was surprising information on newspapers, as Petrolimex and many other fuel trading companies have suffered from losses due to four retail price adjustments since the beginning of this year.

He added Petrolimex's after-tax profit was VND687 billion ($32.7 million).

Under the provisions of the current financial regime, as a fiscal year end, the after-tax profit will be allocated to funds to preserve capital and maintain the business performance of the corporation and pay dividends to shareholders.

The State holds a 95.1 per cent stake in the corporation.

He said Petrolimex will soon report to a higher administration about its project on transparency in fuel trading.

VNS

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