Gasoline retailer PVOIL earns $32 mln profit in 2022

PetroVietnam Oil JSC (PVOIL), a subsidiary of Petrovietnam, reported a consolidated pre-tax profit of VND763 billion ($32.32 million) this year, equivalent to 153% of the year plan, although it suffered significant losses in the third quarter.

PVOIL's consolidated revenue exceeded VND100 trillion ($4.24 billion) for the first time, equivalent to 223% of the year plan, according to information released at the firm's year-end conference late last week.

The company said that it had taken advantage of market opportunities and experienced a sudden growth in business output, reaching 4 million cubic meters of gasoline and oil of all kinds, equivalent to 127% of the year plan and up 27% compared to 2021.

In Q4, PVOIL's revenue was about VND20,400 billion ($864 million), down compared to the second and third quarters of this year, but up slightly compared to the same period last year. Its pre-tax profit in the period was about VND147 billion ($6.23 million), down 54% year-on-year.

Previously, the company had reported a loss of VND373 billion ($15.8 million) in Q3.

In a recent report on the gasoline industry, leading broker VNDirect Securities stated that large gasoline distribution enterprises like Petrolimex and PVOIL have strong recovery prospects, from the low base level of 2022.

Meanwhile, top broker SSI Securities said in a recent report that volatile developments in the market (gasoline shortage in Q3) could put pressure on the profits of large distribution enterprises like PVOil. However, this can also be an opportunity for market leaders to improve their long-term position.

SSI also believes that the increase in premium and transportation costs in structuring gasoline retail prices can help distributor profits recover, including for PVOil. In addition, the recent increase in world oil prices also helps these companies benefit from inventory.