Retail colossus Petrolimex fulfils 44% of yearly profit plan

Petrolimex, Vietnam's biggest gasoline retailer by market share, reported a profit before tax of VND1,340 billion ($57.8 million) in the first five months of 2022, hitting 44% of its entire year target.

Gasoline and diesel sales reached 5.9 million cubic meters, fulfilling 48.4% of the full year plan, Tran Ngoc May, deputy general director of Petrolimex, told the corporation’s shareholder meeting Wednesday.

Petrolimex expects consolidated revenue of $8 billion and profit before tax of $132 million in 2022, up 10% in revenue and down 19% in profit from 2021.

In 2021, the corporation recorded consolidated revenue and profit before tax of $7.29 billion and $163.4 million, exceeding 25% and 13% of its targets. Gasoline sales surpassed 1% of the plan at 12.38 million cubic meters.

The retail giant proposed a cash dividend rate of 12% for 2021, which may cost about $67.7 million. The rate is expected to maintain in 2022.

Petrolimex, with the state being the majority shareholder, plans to continue divesting from PG Bank and other investments that are not efficient or do not align with its development strategy in order to recover investment capital.

Notably, the group has added real estate into its business lines, including leasing houses, offices, shops, shopping centers, factories, exhibition areas, and warehouses.

Petrolimex recorded revenue of $2.89 billion in the first quarter of 2022, up 75% year-on-year, while net profit dropped by 63% to $10.5 million.

The decline was linked to a reduction in output at the Nghi Son refinery, which failed to fulfill the contract with Petrolimex. Therefore, Petrolimex was forced to seek spot supplies at high costs amid market fluctuation, resulting in a reduction in its gross profit margin.

Petrolimex holds roughly 50% of the country's gasoline retail market share.