Vietnam’s largest oil importer drives for $200 mln profit target

• Petrolimex offloads government stake worth $178 mln to Japanese partner
• PG Bank, Vietinbank to merge in Q2: Petrolimex
• Petrolimex net profit hits six-year high

To meet this profit target, the company aims to sell an average 8.8 million cubic meters of oil products per year in the domestic market from 2016-2021, rising 11.1 percent from 2015, the company said in draft reports prepared for the annual stakeholders meeting on June 23.

A gas station worker pumps petrol. Photo by VnExpress

Vietnam does not publish its oil demand, which is one of the factors that reflect economic growth. According to Japan's JX Nippon Oil & Energy, which has an eight percent stake in Petrolimex, current petroleum demand in Vietnam is approximately 350,000 barrel per day, and is expected to increase in line with economic growth.
In 2016, Petrolimex expects its domestic sales volume to reach 8.2 million cubic meters, up 3.6 percent from 7.9 million cubic meters in 2015.
The company's 2016 target is supported by the projected improvement of the domestic economy, which is expected to achieve gross domestic product growth of 6.7 percent this year, according to Petrolimex. But it also warned that the domestic market is becoming more and more competitive with 24 oil importers.

Petrolimex also said it has completed the sale of an eight percent stake to JX for $178.3 million.
Petrolimex and JX Nippon Oil & Energy will start a feasibility study to build a new refinery in Khanh Hoa Province within a year.

Related news:

> Petrolimex offloads government stake worth $178 mln to Japanese partner

> PG Bank, Vietinbank to merge in Q2: Petrolimex

> Petrolimex net profit hits six-year high