High target comes after poor 2014 results.
Petrolimex passed a business plan at its annual general meeting yesterday targeting pre-tax profit of VND2.45 trillion ($112.3 million) in 2015, equal to 760.9 per cent of its pre-tax profit last year. The profit of the parent company is expected to be VND448 billion ($20.5 million), or 138 per cent of the 2014 figure.
The 2015 target is high because its business results in 2014 were quite modest. Pre-tax profit stood at just VND322 billion ($15.2 million), only 16 per cent of the 2013 result. Losses in its petrol business totaled VND497 billion ($22.7 million), while businesses besides petrol saw profit of VND336 billion ($15.4 million). After tax, Petrolimex recorded losses of VND9 billion ($412,830) in 2014, whereas it was made a profit of VND1.597 trillion ($73.2 million) in 2013.
General Director Tran Van Thinh explained that in the first nine months of 2014 Petrolimex recorded profit in petrol of VND600 billion ($27.5 million), but in the fourth quarter the global petrol price fell by half, to its lowest level in five years. Moreover, the petrol business mechanism was changed under Decree No. 83, causing losses of VND450 billion ($20.6 million).
He also pointed out that the petrol business will continue to be influenced by factors such as unpredictable global petrol prices, slow recovery in major economies, and an oversupply of petrol.
In the first quarter the net profit of Petrolimex was over VND461 billion ($21.1 million), an increase of 80.7 per cent year-on-year. At the parent company the net profit was over VND90 billion ($4.1 million). Vice General Director Tran Ngoc Nam said profit improved thanks to the operational mechanism of the State and the fact that global petrol prices increased in the first quarter.