Petrolimex profits fall sharply

Petrolimex's third-quarter 2024 profit decreased by more than 82% year-on-year, down to VND140 billion due to a sharp drop in oil prices.

Vietnam National Petroleum Group (stock code: PLX) announced its financial report for the third quarter of 2024 with modest business results. Specifically, net revenue recorded more than VND 64,324 billion, down 11% over the same period. Gross profit decreased by 10% to VND 3,436 billion, gross profit margin reached 5%.

Financial revenue was approximately VND496 billion, less than half of the VND1,189 billion of the same period. The reason is that this quarter Petrolimex did not record profit from divestment from Petrolimex Joint Stock Commercial Bank (PG Bank) like in the third quarter of last year.

Sales and administrative expenses both increased year-on-year. Specifically, sales expenses increased by 7% to VND3,318 billion, while administrative expenses increased by 25% to VND268 billion. Meanwhile, financial expenses decreased sharply from VND627 billion to VND232 billion.

After deducting expenses, the company reported pre-tax profit of VND241 billion and after-tax profit of VND130 billion, down 80% and 82% respectively compared to the same period last year.

According to the board of directors’ explanation of the poor business results, the profit decrease was mainly due to the sharp drop in world oil prices. In addition, some other business areas of the group were not favorable, the market demand decreased, causing the profit from subsidiaries trading in asphalt, chemicals, etc. to decrease compared to the same period.

In the first 9 months, the company recorded revenue of more than VND 212,990 billion, up 4% over the same period in 2023. Gross profit was approximately VND 12,712 billion, up 13% over the same period last year. Gross profit margin was nearly 6%, equivalent to the same period. Pre-tax profit was about VND 3,200 billion and after-tax profit was more than VND 2,551 billion, up 4% and 12% respectively over the same period.

At the annual meeting in April, the board of directors forecast that this year's economic situation will have many unfavorable factors, requiring the group to make efforts and closely follow the actual situation to complete the revenue target of VND 188,000 billion, down 32% compared to the implementation in 2023. Consolidated pre-tax profit of VND 2,900 billion, down 26% compared to the previous year. The company also plans to pay dividends to shareholders at a minimum rate of 10% of charter capital.

After the first 3 quarters of the year, the company exceeded its revenue plan by 13% and its profit target by 10%.

The group's total assets as of the end of the third quarter were over VND70,189 billion, down nearly VND9,500 billion compared to the beginning of the period. Short-term items accounted for the majority of the company's asset structure with about VND49,621 billion. Cash and cash equivalents reached over VND12,293 billion. Liabilities decreased by nearly VND9,000 billion compared to the beginning of the year, down to VND41,514 billion.

On the HoSE, PLX shares closed the last session of October 2024 at VND41,100, slightly down from the reference and continuing a series of declines for 3 consecutive sessions. Liquidity in the last 10 sessions fluctuated from 450,000 - 800,000 units.

Petrolimex's third-quarter 2024 profit decreased by more than 82% year-on-year, down to VND140 billion due to a sharp drop in oil prices.

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