PVOIL completes 44% of the 2023 whole-year profit target in Q1

PetroVietnam Oil Corporation JSC (PVOIL) has announced its first quarter estimated business results with total revenue of 19,000 billion VND. The parent company's pre-tax profit was estimated at 222 billion VND while the consolidated pre-tax profit was seen at 270 billion VND. The after-tax profit of the parent company was estimated at 177 billion VND and consolidated after-tax profit was at 209 billion VND.

On April 18, PVOIL held a meeting with major shareholders and investors to inform business results in 2022, the first quarter of 2023, and the target for 2023.

According to the document prepared for the General Meeting of Shareholders scheduled to take place on April 27, PVOIL planned 2023 consolidated revenue at 50,000 billion VND, and 600 billion VND in consolidated pre-tax profit, while consolidated after-tax profit was targeted at 400 billion VND. The parent company's pre-tax and after-tax profit was projected at 500 billion VND and 400 billion VND.
In the first quarter of 2023, PVOIL completed 38% of the whole-year revenue plan, 45% of the consolidated pre-tax profit plan, and 44% of the consolidated after-tax profit target.

In terms of output, petroleum consumption reached 1,111 million cu.m, equaling 34% of the plan at 3,300 million cu.m. Crude oil export/sale and crude oil import targets for BSR reached 2,639 million cu.m, equaling 29% of the plan, 9,185 million cu.m. Petroleum production reached 151 million cu.m, equal to 31% of the plan of 484 million cu.m.

In comparison to the same period last year, PVOIL's business targets have grown sharply. Petroleum consumption in the first quarter rose by 27% over the same period, following a growth of 28% in 2022.

The business plan for 2023 that PVOIL submitted to the Shareholders' Meeting is quite modest compared to the results of 2022, showing PVOIL's caution when the business environment was forecasted to be volatile and many countries’ economies fell into recession. Consumption demand decreased, inflation continued to remain high, and interest rates showed no signs of cooling down. Brent crude oil price, according to the forecast of some reputable organizations, ranges from 85-100 USD/barrel. Domestically, growth slowed sharply.

Explaining the 2023 business plan that is lower than the implementation in 2022, PVOIL Chairman Cao Hoai Duong, said the situation of the global petroleum business in 2022 was different. There was a period of imbalance between supply and demand. Due to difficulties in importing, and high import prices, domestic prices could not keep up. Many petroleum retailers stopped importing or stopped doing business, so PVOIL filled in the gap in the market.

PVOIL is a major petroleum importer, so it has a certain advantage over small ones, being a traditional customer of Dung Quat Oil Refinery and Nghi Son Refinery, so it has proactively been able to supply and fill the gap in market share to increase consumption output, he added.

“When building the 2023 plan, we asked if the situation is different in 2023. The government has adjusted the pricing mechanism so that domestic prices can be adjusted faster, access to world market prices, business hubs will return to work, the market will be very competitive…”, Mr. Cao Hoai Duong said.

However, PVOIL's leaders said that the plan is prudent, but the Corporation will capture market fluctuations to take advantage of opportunities to increase business efficiency. Like in 2022, thanks to a good response to oil price fluctuations and supply in the market, PVOIL has been able to increase output and maximize business efficiency in the first 6 months of the year, while controlling and minimizing losses in the last 6 months of the year, exceeding business targets.

The business results of the first quarter showed that, on the momentum of the previous year's business results, PVOIL has taken advantage of its advantages to continue to grow at a high rate. In the first quarter, although a number of petroleum stations resumed operation, PVOIL's sales volume still increased 27% in the condition that aggregate demand did not increase.

The subjective reason is that PVOIL has implemented the right business strategy and built a reputable brand. “When the market lacks supply, we do our best to ensure supply to serve customers and the people, so now that the market has stabilized, a number of petrol and oil trading hubs have returned to business. However, many customers still import PVOIL products. We are committed to ensuring the base output in all situations”, the PVOIL leader said.

In the retail market, the PVOIL brand is increasingly trusted by customers thanks to its good service, especially after the recent fluctuation of petroleum supply shortage. That shows, when the petrol stations acquired by PVOIL, after redoing the brand identity, all increase their output by at least 20%, some stores increase their output 3 times compared to before.

The first quarter business results showed that PVOIL's business advantages continued to be promoted to achieve the best business performance, high consumption growth in the context of difficult market conditions.

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