Gasoline retailer PVOIL posts $11.8 mln pre-tax profit in Q1

PVOIL, a subsidiary of state-run giant Petrovietnam, recorded a consolidated pre-tax profit of VND300 billion ($11.83 million) in the first quarter of 2024, up 5% year-on-year, said its leadership.

At a Monday meeting with major shareholders and investors in Ho Chi Minh City in the lead-up to the 2024 AGM, the board of directors revealed that the firm’s gasoline sales in Q1 reached nearly 1.4 million cubic meters, up 22% over the same period last year; and its consolidated revenue hit VND29.4 trillion ($1.16 billion), up 41%.

They said PVOIL plans to earn VND83 trillion ($3.27 billion) in revenue and VND740 billion ($29.18 million) in pre-tax profit this year, down 20% and 7% compared to 2023. Hence, after Q1, the company achieved 40.5% of the year’s profit target.

The corporation's revenue plan is based on a crude oil price of $70 per barrel while market data provider Platts estimates this year’s price at $85.17 per barrel, equivalent to the 2023 average.

As the government continues to reform the petroleum business management mechanism in the direction of reducing intermediaries, and strengthening market supervision and management, making the petroleum business market more transparent and healthier, PVOIL is stepping up network development, the leadership said.

In 2023, the entire system developed 107 gasonline stations, exceeding the yearly plan by 84%. This strategy continues to be implemented this year. In Q1, the corporation opened 33 more gasoline stations, bringing the total number to 789.

According to the leadership, PVOIL has cooperated with electric vehicle (EV) maker VinFast to install charging stations at more than 322 gasoline stations across the country. This cooperation has been generating significant revenues and profits for PVOIL's member units. The two sides will continue their collaboration to increase the number of EV charging stations in the near future.

In addition, the corporation will invest in developing non-petroleum services in 2024 with an increase of convenience stores. PVOIL will cooperate with coffee brands to open cafés in gasoline stations and invest in rest stops on highways.

In 2023, PVOIL reported that gasoline sales hit more than 5.2 million cubic meters, an increase of 29% compared to 2022, resulting in revenue of VND103.6 trillion ($4.08 billion), or doubling the yearly target. Its consolidated pre-tax profit reached VND798 billion ($31.5 million), surpassing the year’s plan by 33%. The company offered a cash dividend plan at a rate of 2% for 2023.

Shares of PVOIL, registered on the Unlisted Public Companies Market as OIL, closed Thursday at VND9,300 ($0.37) per share.