PV Oil, a Petrovietnam subsidiary, has doubled its Jan-Sept profit year-on-year to VND628 billion ($25.56 million), with an opening spree in new retail outlets and soaring sale volumes.
The company, registered on the unlisted public company market (UPCoM) as OIL, reported total revenue of VND66.88 trillion ($2.72 billion) in the nine-month period, down 16% year-on-year; but its net profit doubled to VND628 billion ($25.56 million).
With these figures it exceeded its set revenue and net profit targets by 34% and 38%, respectively.
The company and its subsidiaries opened 81 new gasoline retail stores in the first nine months, exceeding its year plan by 59% to reach 736 at the end of Q3; and it aims to have 750 by the end of the year. It opened 54 new stores in 2022.
The company earned net revenues of VND24.01 trillion ($977.38 million) in Q3, down 7.5% year-on-year.
However, its Q3 gross profit margin soared 3.6 times year-on-year to VND1.15 trillion ($46.72 million) and gross profit margin improved from 1.2% to 4.8%. As a result, the company was able to turn a VND319 billion ($12.98 million) loss into a VND219 billion ($8.91 million) profit.
PV Oil stated that the positive consolidated financial results for Q3 were primarily due to the parent company's performance. The parent company's Q3 sale volume increased by 37%, while revenue went up 21% from the previous year.
On the other hand, global oil prices increased during Q3, leading to continuous adjustments in domestic retail prices for gasoline products. This is in contrast to the same period last year, when global oil prices fell significantly due to concerns about economic recession risks and inflation.
This company's total assets were VND33.59 trillion ($1.36 billion) as of September 30, an increase of VND4.79 trillion ($194.77 million) from the beginning of the year. Cash and deposits accounted for VND12.82 trillion ($521.41 million), or 38% of its total assets. This firm increased its inventory significantly, from VND2.94 trillion to VND5.94 trillion ($241.64 million).
Double digit network expansion
PV Oil's retail network expansion and significant increase in sale have been prominent aspects of its business operations over the last nine months.
Its gasoline sale volume reached nearly 3.8 million cubic meters, exceeding its 9-month target by 52% and annual plan by 11%.
In 2022, output reached 4 million m3, exceeding its year plan by 29% and increasing by 28% over the previous year. Of this, the retail channel's volume saw a 32% increase, exceeding its annual plan by 14%. The sale volume for the first nine months of 2023 equalled 95% of the 2022 total.
The company said it has actively promoted the use of technology, automation and digital transformation. PVOIL Easy’s sale volume for the first nine months reached 95,000 m3, a 33% rise year-on-year. This equates to 348 m3 per day, a 25% increase against the daily average in 2022.
It has implemented the PVOIL Easy program integrated with Viettel Pay, GotIt, VCB, Momo, HDBank and others to increase sales through direct retail channels. The transaction volume through these channels reached 20,000 m3 in the first nine months, double year-on-year and equivalent to the sale volume of 18 gasoline stores.
It utilizes the PVOIL B2B program for its wholesale distribution channel, which helps modernize and streamline customers' purchases and sales.
Furthermore, PV Oil has completed the installation and deployment of nearly 300 electric vehicle charging stations of Vietnamese carmaker VinFast at its gasoline retail stations nationwide.
The company's leadership said that this collaboration was an initial step in implementing a strategy to adapt to the strong, ongoing trend of energy transition.
PV Oil's long-term goal is to become a provider of diversified energy sources for various modes of transportation, the company stated.
Parent company Petrovietnam, involved in the entire oil and gas downstream chain, including import and export, crude oil trading and processing, storage, and distribution of petroleum products, owns an 80.5% stake in PV Oil.
Over a period of 15 years, PV Oil has risen to second place in domestic gasoline sale volume, with a market share of around 20%. The company has a 23% market share in Laos and is one of the top three companies in gasoline distribution.
PV Oil is the only company in Vietnam that is involved in marketing and exporting Vietnamese crude and as well as crude that Petrovietnam exploits at overseas fields.
PV Oil also supplies crude as input materials to Binh Son Refining and Petrochemical JSC, which operates Dung Quat oil refinery, with an average annual volume of 7 million tons.