## Petrolimex’s Business Performance in Q2 2024
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Petrolimex’s Financial Highlights for Q2 2024
Source: VietstockFinance
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In Q2, PLX witnessed a 12% year-on-year rise in revenue, reaching nearly VND 74 trillion. Gross profit stood at over VND 4.6 trillion, an 18% increase from the same period last year.
Regarding other financial metrics, financial expenses rose by 5% to VND 373 billion, despite a 23% reduction in interest expenses. Selling expenses increased by 8% to over VND 3.2 trillion, while administrative expenses climbed 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 1.2 trillion, marking a 48% year-on-year increase.
For the first six months of the year, PLX achieved nearly VND 149 trillion in revenue, a 12% increase from the same period last year, with a net profit of nearly VND 2.3 trillion, up by 59%. Compared 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
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As of the end of June, PLX’s total assets were valued at nearly VND 74 trillion, a 7% decrease from the beginning of the year, with a reduction of approximately VND 6 trillion. Of this, nearly VND 53.4 trillion were current assets, a 7% decline. Over VND 26.7 trillion was held in cash and bank deposits, a decrease of about 12%. Inventories showed a slight increase, reaching over VND 15 trillion.
At this time, the company held approximately VND 6.7 billion in principal value of trading securities and incurred a loss of VND 2 billion.
On the liabilities side, short-term debt stood at nearly VND 44.7 trillion, a 10% reduction from the start of the year. Financial health remained relatively robust, with a current ratio of approximately 1.19. While the quick ratio was only 0.86, this is not a significant concern given the nature of inventory in the petroleum industry.
The majority of PLX’s borrowings were short-term, amounting to VND 17 trillion, a 10% decrease from the beginning of the year. Long-term borrowings totaled VND 596 billion, an 8% drop.
Looking ahead, according to VietCap, the Ministry of Industry and Trade’s approval of an increase in standard costs for each liter of gasoline and diesel on July 4th (from VND 60 to VND 140 and VND 1,140, respectively) could lead to higher fuel prices. This adjustment has the potential to enhance PLX’s ability to cover its actual business expenses. Additionally, the company is expected to benefit in the long term from expanding its distribution of aviation fuel when the Long Thanh International Airport (LTA) becomes operational.
At the 2024 Annual General Meeting, PLX shared its plans to supply aviation fuel to airlines at LTA as part of its 2020-2030 business strategy. The aviation fuel distribution segment has contributed, on average, about 10% to PLX’s profit during 2019-2023 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
The Stock Market’s Eager Anticipation: Unveiling the Imminent Q2 Earnings Report
The domestic stock market has just witnessed a bullish week with all 5 trading sessions ending in the green, pushing the VN-Index above the 1,280-point threshold. Forecasts remain optimistic for the market’s recovery trend to extend into the coming week, targeting previous highs as anticipation builds for the imminent disclosure of Q2 earnings reports.
