Oil price swings reshape profit landscape across energy sector in Q1

Oil price swings reshape profit landscape across energy sector in Q1

First-quarter financial statements released by major listed energy firms showed a deeply divided performance picture as geopolitical tensions and volatile crude prices created contrasting outcomes across the sector.

Petrolimex's petroleum storage tank system in Quảng Ninh Province. — VNA/VNS Photo

Sharp fluctuations in global oil prices in the first quarter of 2026 are reshaping earnings across Việt Nam’s oil and gas sector, with some firms benefiting from the commodity cycle while others come under pressure from rising inventory costs and narrowing margins.

Among the most notable cases was Petrolimex. The fuel distributor reported net revenue of nearly VNĐ98.7 trillion (US$3.9 billion) in the first quarter, up more than 45 per cent year-on-year and marking its highest quarterly revenue in 13 years.

However, the sharp increase in sales did not translate into profitability as the cost of goods sold rose in tandem, leaving gross profit nearly unchanged at around VNĐ3.7 trillion. The company’s expenses also climbed 19–32 per cent in the quarter.

As a result, Petrolimex posted a net loss of more than VNĐ662 billion, reversing from a profit of nearly VNĐ211 billion a year earlier. This marked its first quarterly loss in six years and its weakest performance since the first quarter of 2020.

Earlier, company leaders had warned that losses from petroleum trading activities in the quarter could reach around VNĐ1 trillion due to unprecedented oil price volatility.

General Director Lưu Văn Tuyển said oil prices at times fluctuated by as much as US$50 per day while import costs, including transport and surcharges, pushed effective prices up to $300–340 per barrel.

The import cost for a single oil shipment increased from around $25–26 million to $85–87 million, Tuyển said.

The price volatility also placed significant pressure on inventories. By the end of the quarter, Petrolimex’s inventory value had surged to nearly VNĐ29.8 trillion, including more than VNĐ6.5 trillion in provisions, an increase of around VNĐ16 trillion from the beginning of the year.

In contrast, Binh Son Refining and Petrochemical, operator of the Dung Quất refinery, benefited substantially from rising crude prices.

The company posted revenue of more than VNĐ45.9 trillion, up 44 per cent year on year, while profit after tax soared to VNĐ8.27 trillion, more than 20 times higher than the same period last year and its strongest quarterly result in four years.

The earnings surge allowed it to exceed its full-year profit target after just one quarter.

The company attributed the strong performance primarily to rising crude oil prices, which climbed from around $67 per barrel at the beginning of the year to nearly $104 per barrel in March, reversing the declining trend seen in the same period last year.

Binh Son Refining and Petrochemical also proactively increased inventories to more than VNĐ21.5 trillion, up nearly VNĐ9 trillion from the start of the year, in an effort to secure supply amid global supply chain disruptions.

A similarly positive trend was seen at PV OIL. The fuel distributor reported revenue of VNĐ44.86 trillion, up 37 per cent year on year, while net profit reached VNĐ571.8 billion, 22 times higher than the same period last year. PV OIL benefited from previously accumulated low-cost inventories that were sold as oil prices climbed.

Petrolimex's petroleum storage tank system in Quảng Ninh Province. — VNA/VNS Photo

Meanwhile, companies in the gas and oilfield services segments maintained steadier growth, supported by less volatile business structures and revenue streams.

PV Gas posted revenue of more than VNĐ38 trillion, up more than 50 per cent year-on-year. However, rising input costs limited gross profit growth to around 10 per cent, with gross profit reaching more than VNĐ4.5 trillion.

Profit stood at VNĐ2.99 trillion, up 8 per cent and marking the company’s highest level over the past three quarters.

In the drilling and oilfield services segment, PV Drilling recorded revenue of VNĐ3.4 trillion, up 126 per cent year-on-year, while profit after tax rose by more than 100 per cent to around VNĐ300 billion.

Growth was driven by an increase in the average number of operating rigs to 4.8 units and a roughly 4 per cent rise in jack-up rig day rates. Drilling services accounted for 64 per cent of revenue at VNĐ2.16 trillion, up 147 per cent, while well technical services contributed VNĐ1 trillion, up 72 per cent.

Similarly, PetroVietnam Technical Services Corporation (PTSC) reported revenue of VNĐ8.7 trillion, up 45 per cent year-on-year, while profit after tax climbed 45 per cent to VNĐ435 billion. After the first quarter, PTSC had completed 49 per cent of its full-year profit target. — BIZHUB/VNS

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