Petrolimex’s announced losses turn out to be profits

Petrolimex’s announced losses turn out to be profits

Petrolimex saw profits of $40.4 million from its petroleum business in 2013, despite consecutively reporting losses in the sector.

According to the updated 2013 business result sent to shareholders, Vietnam National Petroleum Corporation (Petrolimex) saw a pre-tax profit of VND2.021 trillion ($96.2 million) and after-tax profit of VND1.578 trillion ($75.14 million).

For its domestic petroleum business, the corporation achieved pre-tax profits of nearly VND850 billion ($40.4 million).

Previously, Petrolimex announced it had reached consolidated pre-tax profits of VND2 trillion ($95.2 million) for 2013, of which profits from petroleum amounted to VND768 billion ($36.5 million). Given the most updated report, profits from this sector rose VND80 billion ($3.8 million) against the previous report.

Petrolimex deputy general director Tran Ngoc Nam said the difference in profits is because the first reported figure was only an estimation.

“This first number was quoted from January 12, and therefore we had not yet had enough time to do our final accounting,” he told VNExpress.net.

This high level of profit seen from Petrolimex raises many questions, when looking back to 2013, it consistently lobbied to increase its petroleum price due to losses.

Specifically, it raised the petroleum price four times last year, to an end of year price of VND2.640 per liter.

In 2014, Petrolimex anticipates consolidated revenue of VND200 trillion, of which pre-tax profits are expected to reach VND2 trillion ($95.2 million), down very slightly against last year.

As of December 31, 2013, the total consolidated assets of corporation stayed at VND57.454 trillion ($2.735 billion), up by 4 per cent against 2012.

As of December 31, 2013, the total consolidated assets of the corporation were valued at VND57.454 trillion ($2.74 billion), up 4 per cent against 2012.

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