Petrolimex reports huge profits despite lower revenue
Petrolimex reports huge profits despite lower revenue
Despite a loss in revenue, the Viet Nam National Petroleum Group (Petrolimex) reported after-tax profits of VND1.125 trillion (US$50.8 million) in the second quarter, an increase of 172 per cent over the same period last year.
The group released its consolidated financial statement on August 15, saying that it had reached VND43.565 trillion ($1.97 billion) in net revenue, down 22 per cent compared to the same period last year.
However, it said the cost reduction had helped it gain better after-tax profits for the second quarter.
Similarly, though sales in the first half of the year were VND81 trillion ($3.66 billion), falling 20 per cent over the same period, the after-tax profits reached VND1.586 trillion ($71.7 million), as much as 137 per cent higher than in the same period last year.
The group recorded VND124 billion ($5.6 million) in after-tax profits, and its joint ventures and affiliates, as much as an increase of 33 per cent over the same period last year.
The report said the group's financial costs had risen by 54 per cent, and the cost of sales and administration expenses had slightly increased by 1 and 8 per cent, respectively.
The group has charter capital of VND10.7 trillion ($484 billion) and 1.07 billion shares traded in the over-the-counter market.
Established in 1996, Petrolimex is one of 19 wholesale fuel traders in the country. With 27 joint ventures and affiliates, it now holds nearly 50 per cent of the retail market.
Petrol prices this year have risen four times and fallen five times. The price of one litre of the most popular fuel, petrol RON 92, is VND1,420 ($0.06) higher than the price at the end of 2014.
