On October 28th, 2020, PetroVietnam Oil Corporation (PVOIL) announced its financial statement for the third quarter of 2020.
Accordingly, in the quarter, the corporation’s net revenue reached 11,579 billion VND, down 9,243 billion VND, equivalent to 44.4% over the same period last year. Cost of goods sold (COGS) in the reported period was 11,090 billion VND, down by 9,137 billion VND, equivalent to 45.2% over the same period last year.
Gross profit reached 489 billion VND, down 106 billion VND, equivalent to 17.8% over the same period last year.
Due to the double impacts from the Covid-19 pandemic and the decline in global oil prices, the decrease in business output cut PVOIL's revenue and business profit in the quarter.
The decrease in domestic gasoline prices in the first 15 days of October 2020 caused the net value of inventories as of September 30, 2020 being negative and the corporation had to make a provision of more than 66 billion VND for parent company and nearly 40 billion VND for consolidated financial report.
Third quarter revenue from financial activities was 154 billion VND, up 57 billion VND, equivalent to 59% over the same period last year, while financial expenses fell by 8 billion VND, equivalent to 16% from a year ago, partly supporting the overall loss in the third quarter.
Consolidated pre-tax profit in the third quarter was over 1 billion VND. However, the corporation recorded consolidated after-tax loss of more than 16 billion VND. Loss of parent company was 24 billion VND.
In the first 9 months of 2020, PVOIL recorded consolidated pre-tax loss at 305 billion VND and 367 billion VND after-tax loss. Meanwhile, the corporation reported 295 billion VND profit in the same period of last year.
As of September 30th, 2020, PVOIL's total assets stood at 20,429 billion VND, a decrease of 6,051 billion VND, equivalent to a drop of 23% compared to the beginning of 2020. Among the decrease in assets, cash and cash equivalents dropped 1,314 billion VND, receivable debt decreased 3,952 billion VND, inventory decreased 388 billion VND; corresponding to the total source of capital decreased 6,051 billion VND.
Liabilities decreased by 5,564 billion VND, accounting for 92% of the decrease. The amount includes the impact of the sharp decrease in petroleum prices and the reduction in payable on behalf of crude oil for export entrustment.
On January 1, 2020, PVOIL had consolidated loss of 751 billion VND. After 9 months, the corporation had an additional loss of 308 billion VND. Therefore, PVOIL's consolidated undistributed profit target as of September 30, 2020 was 1,058 billion VND loss. Of the amount, accumulated loss of Petec, a PVOIL's subsidiary, was 1,788 billion VND.