Petroleum distributors back in the black

By Hung Le   August 5, 2020 | 10:33 am GMT+7
Petroleum distributors back in the black
Petrolimex employees work at a gas station in District 1, Ho Chi Minh City. Photo by VnExpress/Thanh Nguyen.

Major state-owned petroleum companies Petrolimex and PVOil have reported a profitable second quarter after enduring heavy losses in the first.

Second quarter results announced by the Vietnam National Petroleum Group (Petrolimex), which has a 50 percent share of the petrol distribution market, show a net profit of VND791 billion ($34.3 million) as against a net loss of nearly VND1.9 trillion ($82.3 million) in the first quarter.

It reported revenues of VND26.7 trillion ($1.16 billion) in the second quarter, a 46 percent fall year-on-year.

Petroleum prices recovered in the second quarter to enable oil and gas firms to offset some of the earlier losses, Nguyen Ngoc Nam, deputy general director of Petrolimex, said.

The prices had fallen to their lowest levels in over a decade as the Covid-19 outbreak drove down global oil prices and dampened demand for transportation.

The company’s first half revenues were down 30 percent to VND65.2 trillion ($2.82 billion) and pre-tax losses were VND911 billion ($39.5 million).

Vietnam Oil Corporation (PVOil), which trades crude and processes lubricants besides accounting for around 30 percent of the petroleum distribution market, reported a VND183 billion ($7.93 million) post-tax profit in Q2. However, its revenues downed 46 percent to VND11.65 trillion.

For the first half, the company reported a loss of VND355 billion.

Binh Son Petrochemical Refinery (BSR), which operates one of Vietnam’s two oil refineries, Dung Quat in the central Quang Ngai Province, reported a post-tax loss of VND1.9 trillion ($82.3 million) in Q2, and VND4.23 trillion in H1.

 
 
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