Vietnam's retail giant Petrolimex seeks foreign partnership in green energy technologies

Vietnam's biggest gasoline retailer Petrolimex has started selling biofuels and is actively seeking opportunities to partner with international players to invest in green energy technologies. Chau Anh reports.

Petrolimex (HoSE: PLX) reported an 81% plunge year-on-year in Q1 after-tax profit to nearly VND211 billion ($8.1 million), marking its second-lowest quarterly result in the past 10 quarters.

Net revenue in the quarter reached VND67.86 trillion ($2.6 billion), down nearly 10%, according to the corporation’s Q1 consolidated financial report.

Although the cost of goods sold declined by almost 9%, gross profit dropped sharply by 20% to VND3.71 trillion ($142.7 million).

Interest expenses edged down as bank lending rates remained low, helping Petrolimex cut its borrowing costs by 15% in Q1 to VND165.6 billion ($6.4 million). However, financial income, mostly from deposit interest, declined 6% to VND421.8 billion ($16.2 million).

On the cost side, most expense categories saw an increase. Selling expenses rose 5% to VND3.35 billion ($129,000), while administrative expenses climbed 10% to VND263.6 billion ($10.1 million). Combined with the decline in revenue, this led to a sharp contraction in the group's consolidated after-tax profit.

As of March 31, Petrolimex reported a modest 1.5% decline in total assets from the start of the year, totaling VND80.04 trillion ($3 billion). Of this, short-term assets accounted for the majority, reaching nearly VND59 trillion ($2.3 billion).

It is noteworthy that its inventory value stood at VND16 trillion ($615.3 million), accounting for around 20% of total assets – a relatively high ratio compared to industry standards.

The provision for inventory write-down surged to VND334 billion ($12.8 million), more than four times higher than at the beginning of the year.

The group’s short-term financial investments by March 31 totaled over VND20 trillion ($769 million), up from VND15.1 trillion ($581 million) at the beginning of this year.

However, revenue from financial activities for this quarter reached only over VND421.8 billion ($16.2 million), indicating a modest return on investment relative to the capital scale.

Its non-term deposits increased by 30%, reaching VND6.6 trillion ($253.8 million). The group is also investing nearly VND6.7 billion ($258,000) in stocks (with provisions of over VND2.1 billion or $81,000), VND17.81 trillion ($685 million) in short-term bank deposits, and VND253 billion ($9.73 million) in long-term deposits.

Petrolimex holds VND3.2 trillion ($123 million) in short- and long-term bond investments.

At the end of Q1, its payable debt stood at VND50.5 trillion ($1.9 billion), a decrease of 2.8% compared to the beginning of the year.

Of this, short-term debt accounted for VND49.7 trillion ($1.9 billion), also down by 2.8%, and made up a large proportion, representing 98.45% of the group's total payable debt.

Petrolimex's financial debt surged by 15.4% compared to the beginning of the year to VND20.1 trillion ($773 million).

Seeking green energy tech partners

At Petrolimex’s 2025 AGM on April 25, chairman Pham Van Thanh said oil and gas will remain the company’s core pillar over the next 15 years.

However, the global energy transition is accelerating, especially after 140 countries committed to net-zero emissions by 2050. In response, Petrolimex has developed a roadmap to shift from traditional fuels to cleaner alternatives.

Still, over the past three years, the transition trend has become less predictable, with major global corporations taking divergent paths, Thanh noted.

The chairman cited giants like Chevron, ExxonMobil, and Shell which have to adjust their renewable energy investment strategies.

Some have reduced their clean energy investment from $5 billion annually to just $1.5-2 billion, as these investments have yet to deliver tangible economic returns and, in some cases, have resulted in losses, according to Thanh.

Additionally, at the government level, some countries have also revised their policies, he remarked.

Therefore, Petrolimex will continue to monitor developments in Vietnam’s path toward achieving net zero by 2050 to adapt accordingly, he said, adding other domestic oil and gas companies are taking a cautious approach, progressing while keeping a close eye on market trends and avoiding haste.

Thanh informed shareholders about the establishment of a net zero task force, focusing on initiatives such as installing rooftop solar panels, conducting greenhouse gas inventories, and collaborating with global organizations.

The group has also started selling biofuels and is actively seeking opportunities to partner with international players to invest in green energy technologies.

It has signed an MoU with three leading U.S. ethanol associations on provision of ethanol and inked a cooperative agreement, expanding bilateral trade between Petrolimex and the U.S. ethanol industry.

The group has also signed an MoU with U.S.-based Marquis Energy to facilitate the trade and import of biofuels, the chairman said.

On the Ho Chi Minh Stock Exchange (HoSE), PLX closed Tuesday, the last trading day before Vietnam's five-day holiday, at VND 33,900 ($1.3) per share, up 0.3% from the previous session.

Since the beginning of 2025, PLX shares have lost nearly 11% of their market value, equivalent to a drop of more than VND4,000 ($0.15) per share.