Petrolimex posts massive profits behind closed doors
Petrolimex posts massive profits behind closed doors
Vietnam’s largest fuel wholesaler Petrolimex held a meeting to summarize its 2013 operations on Sunday, but local press was not allowed to attend the event and only learned of the financial figures released behind closed doors a day later.
Reporters were not invited, and those who insisted on entering were politely yet firmly rejected.
A representative from the reception board told Tuoi Tre that the meeting was intended for Petrolimex members only, although the Deputy Prime Minister and officials from the Ministry of Industry and Trade were in attendance.
A brief financial report of the company was posted on its website on Monday.
Petrolimex’s total revenues in 2013 topped VND196.33 trillion (US$9.26 billion), dropping slightly by 2.25 percent from 2012, according to the report.
However, its pretax profits surged 97 percent from VND978.17 billion in 2012 to VND1.93 trillion, or $91.04 million, in 2013.
Profits from fuel trading activity alone accounted for VND768 billion of the sum.
The state-run fuel utility increased fuel prices a half dozen times last year. In all cases, Petrolimex defended the increase by citing a common explanation: global fuel prices were rising and it would incur losses if prices in Vietnam did not follow suit.
Petrolimex deputy general director Tran Ngoc Nam told Tuoi Tre that the above figures are only estimates.
Nam said the post-tax profits of last year were estimated at VND1.53 trillion. This would also be a 98.65 percent increase from a year earlier.
The executive also noted that Petrolimex earnings should be viewed objectively. Petrolimex sold as many as 8 million tons of fuel in 2013, and its return on equity ratio is around 10 percent, Nam said.
“Petrolimex only enjoys a modest profit of VND96 per liter of fuel it sells,” he said, adding that the profit is not so large compared to the company's capital.
Petrolimex adjusted fuel prices 11 times in 2013, including six cuts and five increases.
Fuel prices gained VND3,220 per liter, but lost only VND2,160 per liter following the adjustments.
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