Petrolimex manages inventory when petrol prices fluctuate greatly

DNHN - According to the financial report published by Petrolimex on the morning of July 30, the total consolidated net revenue of the past 6 months reached VND 151,387 billion, up 78% over the same period. The increase in revenue was mainly due to the average world crude oil price (WTI) in 6 months of 2022 being 101.7 USD/barrel, up 31% compared to the same period in 2021 (average price of 6 months in 2021 was 77.2 USD/barrel).

Total consolidated profit before tax was VND 293 billion, equal to 10% of the plan and 10% over the same period. In which, petroleum business lost 595 billion dong, although domestic gasoline sales volume reached 5,089,866 m3/ton, up 9% over the same period in 2021.

With business activities other than petroleum, pre-tax profit reached 888 billion dong; in which, the profit from petrochemical, asphalt and chemical sectors reached the highest with 369 billion dong. Next was the insurance business, the bank reached 138 billion dong; warehouse business reached 112 billion dong; aviation fuel reached 91 billion dong; gas business reached 79 billion dong; other fields reached 56 billion dong; transportation reached 43 billion dong.

Petrolimex said that in the second quarter of the past, the Group produced and traded petroleum in the context of unpredictable fluctuations in world crude oil prices. Accordingly, with the negative impacts from the conflict between Russia and Ukraine, the Russian oil embargo caused the world oil price (WTI) to increase from 99.4 USD/barrel at the beginning of the second quarter to 122 USD/barrel (increased by 23%), then fell deeply to 105.8 USD/barrel at the end of June.

In the context of having to ensure the supply of gasoline for the domestic market is not short, Petrolimex has increased imports to offset social consumption demand during the period of high world prices. Therefore, the gross profit margin of petroleum business in the second quarter of 2022 suffered a big decline.

According to Petrolimex, with gasoline prices from July 2022 being adjusted down with a large margin, in order to ensure the principle of prudence in accordance with accounting standards and provide transparent financial information to investors, the parent company has made provision for devaluation of inventories as at 30/6/2022 on the basis of net realizable value of inventories at the balance sheet date with the provision 1,259 billion VND. If no provision is made for devaluation of inventories, the parent company's profit before tax in 6 months of 2022 is VND 295 billion and consolidated profit before tax is VND 1,551 billion.

In order to fulfill the production and business goals in the third quarter and the whole year of 2022, the Group is deploying synchronously many solutions such as: inventory management, negotiations with major petrol and oil distributors, etc. in order to create enough resources to meet the consumption needs of the society.

Together, reviewing and reducing costs in all areas to improve business efficiency such as: Deployment of centralized vehicle management (DOC) projects, asset management programs (PM), program customer management (CRM), etc. At the same time, the unit also focuses on increasing cashless retail output; promoting brand identity in phase 2 throughout the Petrolimex system; research and development of a truck service station project to facilitate customers to buy petrol.

Implementing the digital transformation plan, in the immediate future, Petrolimex will focus on automating the system of petrol and oil depots and stores; deploying a nationwide sales program through the Petrolimex app... In addition, Petrolimex is also completing a project to restructure the Group and divest capital in inefficient business fields and lines. With investment projects, Petrolimex is speeding up the construction progress of the Petrolimex building, upgrading the system of warehouses, ports, pipelines, investing in technological equipment, etc., in order to promptly and effectively serve production activities business.

P.V (t/h)