Petrolimex’s (PLX) profit down despite revenue increase

Petrolimex’s (PLX) profit down despite revenue increase

Viet Nam National Petroleum Group (Petrolimex) reported total sales of more than VND155.65 trillion (US$6.83 billion) last year, a year-on-year increase of 26 per cent.

But despite a growth in revenue, Petrolimex posted a consolidated pre-tax profit of nearly VND4.88 trillion, down 23 per cent compared to the previous year.

The increase in revenue was attributed to the increasing average price of WTI (West Texas Intermediate) crude oil in 2017, with $50.85 a barrel, up 17.4 per cent over the same period in 2016, Petrolimex explained.

According to its report, the most profitable sector was the petroleum business of the group, with over VND2.49 trillion, equivalent to 51 per cent of total consolidated sales. Non-petroleum business activities contributed nearly VND2.4 trillion or 49 per cent of total consolidated profit.

Of this, profits from petrochemicals, asphalt and chemicals were the highest at VND651 billion. This was followed by profits from aviation fuel at VND384 billion; ocean transportation, inland waterways transport and road transportation reached VND339 billion; gas sales reached VND202 billion, and the lowest profit of two companies abroad reached only VND47 billion.

As of December 31, 2017, Petrolimex’s total assets increased by VND12.306 trillion compared to the beginning of the year to VND66.55 trillion. Its inventories increased by more than VND4 trillion to nearly VND12.69 trillion and accounted for nearly 20 per cent of total assets.

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