Gasoline retailer PVOIL posts $15 mln Q3 loss

PetroVietnam Oil JSC, a subsidiary of Petrovietnam, has reported a third-quarter loss of VND373 billion ($15 million) over a sharp drop in gasoline prices.

The company (PVOIL) noted that world oil prices continued to increase in the first six months of the year, especially since the Russia-Ukraine conflict broke out. However, from the end of June to September 2022, there was a reverse and the prices decreased continuously on concerns over the economic recession and inflation.

In line with world price movements, the state continuously lowered the retail price of petroleum products in Q3, causing PVOIL’s gross profit to decline deeply, while expenses increased, the company said.

PVOil's Q3 net revenues reached VND25,962 billion ($1.04 billion), 2 times year-on-year. However, its gross profit margin decreased to 1.24%, the lowest in the past 10 quarters.

The company also suffered a loss of more than VND13 billion ($523,100) derived from joint ventures and associates. Selling and administrative expenses increased 38% and 25% year-on-year, respectively.

In the first nine months of the year, PVOIL earned net revenues and after-tax profits of VND79,617 billion ($3.21 million) and VND431 billion ($17.35 million), 2.1 times and down 17%, respectively.

At the end of Q3, PVOIL's total assets were valued at VND27,365 billion ($1.1 billion), a slight increase compared to the beginning of the year. Accounting for the largest proportion in the asset structure was cash, cash equivalents and term deposits at VND9,474 billion ($381.44 million).

Inventories rose 34% compared to the beginning of the year to VND3,453 billion ($139.02 million).

PVOIL is listed on the Unlisted Public Company Market as OIL. The share closed Friday at VND8,700 ($0.35).