With hundreds of billions in surplus money, Saigon Fuel Company still owes taxes and workers.

For every liter of gasoline sold, SFC earns an average gross profit of approximately 891 VND.

The petroleum business is a specialized field, so for a long time, few people outside the industry had detailed information about it. Recently, when the Government Inspectorate announced the conclusions of its inspection on compliance with policies and laws in the state management of petroleum, the hidden aspects of the petroleum market gradually began to be revealed.

Besides the businesses whose violations in petroleum trading have been identified by the Government Inspectorate, among the 36 key petroleum distribution companies (previously 38, but now Xuyen Viet Oil and Bach Khoa Viet have had their business licenses revoked), there are still some companies with unfavorable financial situations.

According to Lao Dong newspaper's investigation, Saigon Fuel Joint Stock Company is one of the major petroleum businesses in the country, operating primarily in Ho Chi Minh City. According to its website, the company has a vision for sustainable and efficient development, aiming to become one of the most reputable petroleum retail companies in Ho Chi Minh City.

A gas station of Saigon Fuel Joint Stock Company. Photo: Nguyen Ly

In late December 2023, Saigon Fuel Joint Stock Company published its 2023 annual report, revealing several noteworthy financial details.

Accordingly, implementing the business plan for the fiscal year 2023 (from October 1, 2022 to September 30, 2023), at the end of 2023, Saigon Fuel Joint Stock Company recorded revenue of VND 1,630 billion, an increase of 12% compared to 2022.

Meanwhile, Saigon Fuel Joint Stock Company reported a pre-tax profit of over 36 billion VND, an increase of 10 billion VND compared to the previous year. Of this, pre-tax profit from gasoline and diesel sales reached over 11 billion VND, accounting for 32% of total profit. It is known that in the 2023 fiscal year, the company earned an average gross profit of approximately 891 VND per liter of gasoline.

According to the 2023 annual report of Saigon Fuel Joint Stock Company, this year's revenue compared to the previous year was due to an increase in the volume of petroleum products sold. Meanwhile, total pre-tax profit over the past five years was nearly 149 billion VND, averaging approximately 30 billion VND per year. The highest profit was 36 billion VND, while the lowest was 26 billion VND.

As of September 30, 2023, the total assets of Saigon Fuel Joint Stock Company reached VND 292 billion, an increase of 26% compared to the same period in 2022.

Of this amount, cash and cash equivalents totaled nearly 143 billion VND, an increase of 86 billion VND compared to the figure of over 57 billion VND at the beginning of the year. This includes nearly 5 billion VND in cash at the company, over 18 billion VND in bank deposits, nearly 6 billion VND in cash in transit, and over 113 billion VND in time deposits with maturities of no more than 3 months. Inventory at Saigon Fuel amounted to over 19 billion VND, an increase of 92% after 12 months.

Debts are ballooning.

On the other side of the balance sheet, the liabilities of Saigon Fuel Joint Stock Company as of September 30, 2023 reached VND 107 billion, an increase of 98% compared to the same period in 2022. Notably, the company incurred VND 38 billion in financial debt, while no such debt was recorded in the previous year.

Despite strong business performance and cash reserves and bank deposits exceeding 100 billion VND, Saigon Fuel Joint Stock Company surprisingly saw a significant increase in employee and tax debts in the 2023 fiscal year compared to the same period.

Accordingly, as of September 30, 2023, the taxes and other payments due to the State by Saigon Fuel Joint Stock Company amounted to over 26 billion VND, an increase of 13 billion VND, or approximately 97%, compared to the end of September 2022 (over 13 billion VND).

According to Saigon Fuel Joint Stock Company, the rapid increase in tax debt compared to the same period last year is mainly due to environmental protection tax, resulting from increased sales volume compared to the same period in 2022.

Meanwhile, the list of payables to employees of Saigon Fuel Joint Stock Company at the end of the 2023 fiscal year exceeded 7 billion VND, an increase of 74% after 12 months. It is known that as of September 30, 2023, the company had 179 employees.

Entering 2024, Saigon Fuel plans to achieve a pre-tax profit of 29 billion VND, a 19% decrease compared to 2023.

Source