PVOIL records outstanding growth in petroleum volume in 2022

16.03.2023

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PetroVietnam Oil Company (PVOIL) has released its 2022 financial report. The corporation's business production increased dramatically, hitting 4 million cu.m of petroleum, fulfilling 127% of the full-year target and rising 27% compared to 2021.

On that basis, PVOIL achieved net revenue of 104,213.8 billion VND in 2022, up 80.2% from a year earlier.

Surprisingly, PVOIL maintained an adequate supply of commodities for the whole system throughout periods of petroleum shortage, helping to stabilize the petroleum market, particularly during periods of gasoline scarcity in September and October 2022.

While many petroleum stations in Hanoi and Ho Chi Minh City were closed owing to a shortage of supply and financial losses, PVOIL petroleum stations remained open, with sales increasing thrice over typical hours.

At the same time, PVOIL's petroleum output to other distribution channels exceeded 28% of the goal. This explains why sales volume increased while company efficiency decreased in the third quarter of 2022. Nonetheless, PVOIL's after-tax profit for the entire year of 2022 was 723.20 billion VND, or 93.6% of the profit in 2021.

PVOIL's post-audited financial records revealed a consolidated cumulative loss of just 185.53 billion VND, a decrease of 1,490.87 billion VND from the period of equitization on December 31, 2017.

PVOIL suffered a total loss of 1,676.4 billion VND. This also represents PVOIL's efforts in business operations since its equitization. Given this increasing pace, PVOIL may be able to erase accumulated losses in the near future.

PVOIL's post-audit consolidated financial report for 2022 showed bad debts totaling 894.29 billion VND. Bad debts are mostly debts from subsidiaries (PETEC), accounting for 683.43 billion VND, or 76.45% of total bad debts. These debts were recorded prior to PVOIL's equitization in 2018 and were all made with a 100% provision so that they would not harm PVOIL's present business performance, which may be reversed and realized in profit when debt recovery occurs.

Furthermore, in 2022, PVOIL collaborated with VinFast to swiftly deploy roughly 300 electric car charging stations at PVOIL fuel stations around the country. The collaboration is the first step in executing a plan for PVOIL to respond to the energy transition trend, making PVOIL a diverse energy provider for cars in the future, including not only petroleum but also electric and hydrogen energy.

With this potential for collaboration, PVOIL and VinFast will continue to look for ideal places to increase the number of charging stations to satisfy the development goals of both parties.