Petrolimex seeks to sell entire treasury stock holdings as shares remain 43% below peak

Petrolimex, Vietnam's largest fuel retailer by market share, plans to sell its entire treasury stock holdings to comply with public company regulations, while its PLX shares on the Ho Chi Minh Stock Exchange plunged 43% from the peak reached in March.

Based on Wednesday's closing price of VND39,150 ($1.49) per share, the transaction could generate more than VND900 billion ($34.17 million), according to a freshly announced board resolution approving the plan.

According to the shareholder list finalized for participation in the company's 2026 annual general meeting (AGM) as of the March 25 record date, Petrolimex had 43,266 shareholders, including 43,264 non-major shareholders holding voting shares.

However, the combined ownership of these investors accounted for just over 9.4% of total voting shares, below the regulatory requirement that at least 10% of voting shares be held by a minimum of 100 non-major investors.

At the AGM, board member Tran Tuan Linh said the group had proactively reviewed the issue and identified specific solutions. Under the proposed plan, Petrolimex will sell treasury shares to increase the stock's free-float ratio while continuing its roadmap to reduce state ownership.

The treasury share sale is also expected to strengthen the group's financial position and support its long-term capital structure. As of the end of the first quarter of 2026, Petrolimex held nearly 23.3 million treasury shares with a book value of VND232.8 billion ($8.84 million).

Following the announcement, PLX shares surged 6.9% to their daily ceiling price of VND41,850 ($1.59) at Thursday's close.

First-quarter loss widens on hefty inventory provisions

In contrast to several industry peers, Petrolimex posted a net loss of VND662 billion ($25.14 million) in the first quarter, compared with a profit of VND210.7 billion in the same period last year.

Revenue rose 45.4% year-on-year to VND98.7 trillion ($3.75 billion). However, gross margin narrowed sharply to 3.7% from 5.47% a year earlier, leaving gross profit largely unchanged. Meanwhile, financial, selling and administrative expenses all increased.

In addition to the impact of global oil price volatility and Middle East geopolitical tensions on input costs, the group significantly increased provisions for inventory losses.

As of the end of the first quarter, Petrolimex's inventory stood at VND36.3 trillion ($1.38 billion), 2.6 times higher than at the beginning of the year. Goods in transit surged from VND1.48 trillion to VND10.09 trillion, while merchandise inventories rose from VND10.99 trillion to VND24.38 trillion. The company booked VND6.51 trillion in inventory provisions.

Total assets increased by VND20.22 trillion during the quarter to VND106.07 trillion ($4.03 billion), primarily driven by higher inventory levels.

Petrolimex also reported VND6.43 trillion ($244.16 million) in trading securities, up sharply from just VND6.6 billion a year earlier, mainly comprising bonds and other investments. Meanwhile, held-to-maturity investments declined from VND17.85 trillion to VND11.17 trillion.

Notably, the company did not increase borrowings to finance its inventory build-up. Instead, it reduced leverage, with short-term debt falling from VND18.09 trillion to VND10.35 trillion ($393 million), while long-term debt edged up slightly from VND609 billion to VND653 billion.

The largest increase on the liabilities side came from short-term trade payables, which jumped from VND23.98 trillion to VND58.7 trillion ($2.23 billion).