A Profitable Second Quarter Sees Petrolimex Surpass Annual Targets

## Petrolimex’s Business Performance in Q2 2024

In Q2, PLX witnessed a 12% year-on-year increase in revenue, reaching nearly VND 74,000 billion. Gross profit, after deducting cost of goods sold, amounted to over VND 4,600 billion, an 18% increase compared to the same period last year.

Regarding other financial metrics, finance costs rose by 5% to VND 373 billion, despite a 23% reduction in interest expenses. Selling expenses increased by 8% to more than VND 3,200 billion, while administrative expenses rose by 15% to VND 253 billion. Notably, Petrolimex recorded VND 121 billion in other income, triple the amount from the previous year.

Finally, the company posted a net profit of nearly VND 1,200 billion, representing a 48% year-on-year increase.

For the first six months of the year, PLX achieved nearly VND 149,000 billion in revenue, a 12% increase compared to the same period last year, with a net profit of nearly VND 2,300 billion, a 59% surge. In relation to the annual plan, the company has accomplished 79% of its revenue target and surpassed the pre-tax profit goal by 1.5%, as approved by the 2024 Annual General Meeting of Shareholders.

Source: VietstockFinance

As of the end of June, PLX’s total assets stood at nearly VND 74,000 billion, a 7% decrease from the beginning of the year, representing a reduction of approximately VND 6,000 billion. Of this, nearly VND 53,400 billion were current assets, a 7% decline. This included over VND 26,700 billion in cash and bank deposits, a decrease of about 12%. Inventories witnessed a slight increase, reaching over VND 15,000 billion.

At this point, the company held approximately VND 6.7 billion in principal value of trading securities and incurred a loss of roughly VND 2 billion in this category.

On the liabilities side, short-term debt amounted to nearly VND 44,700 billion, a 10% reduction compared to the start of the year. Financial health remained relatively robust, with a current ratio of approximately 1.19. Although the quick ratio stood at 0.86, this is not a significant concern given the nature of inventory in the petroleum industry.

The majority of PLX’s debt comprised short-term borrowings, totaling VND 17,000 billion, a 10% decrease from the beginning of the year. Long-term borrowings amounted to VND 596 billion, an 8% drop.

Looking ahead, according to VietCap, the approval by the Ministry of Industry and Trade to increase the cost norm for each liter of gasoline and diesel on July 4 (from VND 60 to VND 140 and VND 1,140, respectively) could lead to higher fuel prices. This increase is expected to enhance PLX’s ability to cover its actual business expenses. Additionally, the company is anticipated to benefit in the long term from expanding its distribution of aviation fuel when the Long Thanh International Airport (LTA) commences operations.

At the 2024 Annual General Meeting of Shareholders, PLX shared its plans to supply aviation fuel to airlines at LTA as part of its 2020-2030 business strategy. The distribution of jet fuel has contributed, on average, about 10% to PLX’s profits during the 2019-2023 period through its subsidiary, Petrolimex Aviation, which is 59% owned by PLX. Furthermore, during a recent investor meeting, PV OIL acknowledged that entering the aviation fuel business is challenging, as it is dominated by Skypec and Petrolimex Aviation, underscoring PLX’s competitive position in this line of business.

Chau An