Gasoline prices have just dropped slightly, giant PV Oil reported: the more they work, the more they lose

Vietnam Oil Corporation (PVOil – OIL) has just announced its most recent quarterly business results.

In the third quarter, the revenue of Vietnam Oil Corporation (PVOil – OIL) more than doubled compared to the third quarter of 2021, but a loss of more than 373 billion VND, while the same period profit was 57 billion VND. This is the lowest profit level of this business in the last 10 quarters.

PVOil’s leaders explained that this profit level was influenced by fluctuating world oil prices. From the end of June to the end of September, world oil prices reversed and decreased continuously due to concerns about economic recession, inflation…

“In line with the above developments, the State has continuously adjusted to reduce retail prices of petroleum products in the third quarter, causing PVOil’s gross profit to decrease,” company leaders explained.

During this period, PVOil recorded more than 320 billion VND in gross profit, down nearly 44% compared to the third quarter of 2021. Gross profit margin also dropped to 1.24% – the lowest in the last 10 quarters. In addition, the company also suffered more than VND 13 billion in losses in joint ventures and affiliated companies. Sales and administrative expenses also increased by 38% and 25%, respectively.

PVOil recorded more than VND 3,400 billion in inventory at the end of September, down 35% compared to the end of June, but up 34% compared to the beginning of the year. This enterprise set up a provision of 150 billion VND for raw materials and inventory, and in the first period of the year it only set aside more than 1 billion VND.

In the first 9 months of the year, PVOil’s revenue reached 79,617 billion VND, 2.1 times higher than the same period. Profit after tax reached 431 billion VND, down more than 17%. In 9 months, they lost 92 billion VND in exchange rate and the main increases were sales staff costs and outsourced services.

In the first 6 months of the year, world oil prices continuously increased, especially since the war between Russia and Ukraine broke out. This is also the period when the company recorded positive business results. Accumulated profit after tax in the first half of the year reached nearly double the full year target, with profit setting a record in the second quarter.

After the peak period, the Ministry of Industry, Trade and Finance continuously adjusted and reduced gasoline prices. From 32,870 VND per liter at the end of June, the price of RON 95-III gasoline decreased to 22,580 VND at the end of September, a decrease of more than 31%. Oil prices fluctuated but overall still decreased by nearly 25%. Accordingly, the profits of this business also dropped to a low level.

However, in the cumulative 9 months, PVOil still exceeded the revenue target by 77% and exceeded the yearly profit plan by nearly 8%. Chairman Cao Hoai Duong also self-assessed the company for adapting flexibly, minimizing damage, and achieving positive production and business results.

In the last 3 months of the year, this enterprise prioritizes closely following the market situation and managing production and business properly to “limit losses in case of difficult market conditions”. The company also focuses on ensuring there is no shortage of supplies at all gas stations throughout the system.

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