Petrolimex, the petroleum distributor for the domestic retail market, has adjusted its profit target to one-tenth of the original forecasts.
|Petrolimex has adjusted its profit prediction |
Petrolimex expects to make profits of $13.04 million for the whole year, instead of $130.4 million as initially projected.
However, the consolidated revenue is expected to increase by $2.34 billion compared to the initial plan, to $10.4 billion.
In the first three quarters this year, Petrolimex took $9.78 billion in revenue, nearly doubling the figure from last year, simultaneously equaling 94 per cent of the plan for the whole year.
However, pre-tax profit was just $26.69 million, equaling one-fifth of the initial expectation. In the third quarter alone, its petroleum and oil activity suffered a loss.
Petrolimex will not adjust the distributed products, the state budget payment, or the dividend. Explaining the reason for this adjustment, Petrolimex said that it was due to the abnormal price of oil, the energy supply source of the world, the operation mechanism related to the base price, and the incident of Nghi Son Refinery.
“The sold volume soared, causing pressure on supply sources. On another side, the unsold volume saw a plunge, thus, the company has to fulfil the warehouse consecutively. The problem is that the price to buy petroleums and oil is high while the selling price is low,” the company said.
The board of directors of Petrolimex will officially release its adjustment in business results at the extraordinary shareholder meeting, which is planned to organise on December 6. Petrolimex has 43 member units directly trading petroleum nationwide.
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