PVOIL targets 49 trillion VND for the total revenue and 440 billion VND for profit before tax in 2019.
PetroVietnam Oil Corp (UPCoM: OIL), a Subsidiary of Vietnam Oil and Gas Group, targets 440 billion VND pretax profit on 49 trillion dong revenue in 2019 within the unstable condition of both international and domestic oil market.
PVOIL set the revenue and profit targets based on international Brent oil price at 60 USD per barrel (16,7% lower than averaged price in 2018) and fuel consumption expected to rise by 3% against last year.
The goal for year 2019 is 22% less than 2018 achievement, 12% less than target adjusted during shareholders’ meeting on August 1st 2018, and 29% more than target proposed early 2018.
In 2018, PVOIL recorded 562 billion VND in profit, an increase by 12% against adjusted target (500 billion VND). The profit exceeded the plan proposed in early 2018 by 65% (340 billion dong).
2018’s profit growth by was contributed by PVOIL’s distribution system of petrol stations nationwide under the Company-Owned Company-Operated (COCO) model and the deployment of new products and services such as mobile application like PVOIL Easy, PVOIL Mobile. With COCO petrol station network, sales of PVOIL rose by 4% compared to last year.
Remarkably, the fourth quarter pretax profit in 2018 dropped sharply to only 12 billion dong compared to 215 billion VND in 2017 due to the dramatic fluctuation of international crude oil prices in November and December.
The international oil price fluctuation affected sales at Dealer Owned Dealer Operated (DODO) petrol stations in last quarter of 2018 due to harsh competition on prices. Leading to the fact that most of stations increased selling volume to reduce maximum the high-priced inventory.
According to PVOIL’s President and CEO Cao Hoai Duong, SK Energy (South Korea), Idemitsu (Japan), Sovico Holding and Shell have been paying lots of attention in buying stocks from the Corp.
PVOIL proposed divesting plan to PetroVietnam in November 2018, seeking for approvals to sell 45,4% total stocks through public bidding. After the plan will be approved by the end of second quarter this year, PVOIL will implement a process of value assessment for public bidding.