PVOIL Sets 8% Growth Target, Prepares to Launch Jet A1 Fuel Business by Year-End

PetroVietnam Oil Corporation - JSC (PVOIL, stock code: OIL) is determined to implement its 2025 business plan amid concerns that trade tensions may negatively affect economic growth and oil price movements, which have already shown unfavorable trends since Q1.

8% Growth Target

Q1/2025 witnessed unfavorable oil price developments. The average price of Brent crude oil in the international market was $75.66 per barrel, down 9% compared to the same period in 2024, and continued to decline in early April to $68.93 per barrel. Global oversupply, coupled with energy and tax policy adjustments by major countries, caused market instability. Domestically, retail fuel prices have been continuously adjusted downward following global trends, putting significant pressure on the profit margins and revenues of fuel trading businesses.

Despite challenges, PVOIL achieved record consolidated revenue in 2024 of over VND 125 trillion, marking consistent double-digit growth over the past three years. Hence, in a challenging business environment with limited growth potential, PVOIL proposes a 2025 business plan with a consolidated revenue target of VND 97.5 trillion and consolidated pre-tax profit of VND 780 billion—an increase of 23%.

In addition to the targets presented to the General Meeting of Shareholders, PVOIL is determined to pursue an 8% revenue growth compared to 2024. This is a major challenge for PVOIL, but also a firm commitment to maximizing shareholder benefits.

This plan is based on an average crude oil price scenario of $65 per barrel and an exchange rate of VND 26,000/USD. It also accounts for market volatility and the actual operational capacity of member units.

In Q1/2025 alone, PVOIL reported nearly 1.3 million m³/tons in sales volume, achieving 98% of the quarterly target; revenue of over VND 33 trillion, up 11% year-over-year; and a near break-even profit. These are positive outcomes amid a fiercely competitive market and external business pressures.

Maintaining market share and increasing revenue in Q1 was a success, largely driven by international oil trading. PVOIL expects improved business performance in Q2—typically a growth quarter—and the rest of the year, given optimistic oil price forecasts.

Although the growth target is highly ambitious, PVOIL is committed to enhancing its market analysis and forecasting capabilities, proactively adjusting operational plans to seize opportunities, and boosting sales volumes. It will also focus on cutting unnecessary expenses and allocating resources to breakthrough projects with clear returns. Strengthening non-fuel services, applying new technology, and enhancing internal linkages will be key to improving PVOIL's competitiveness going forward.

Clear Strategy, Steady Progress

In 2024, with record revenue, PVOIL’s total fuel sales volume reached over 5.6 million m³/tons—1.9 times higher than five years ago. Retail sales surged, up 1.7 times over five years, driven by bold yet prudent strategies to boost revenue and volume.

PVOIL’s distribution network has been expanding continuously. In 2024, 95 new retail fuel stations (CHXD) were added, bringing the total to 866 as of Q1/2025. This nationwide network provides a solid foundation for stable growth and high profit margins.

Regarding digital transformation, PVOIL launched its PVOIL Easy app for business customers, growing volume via the app by about 20% annually—reaching over 150,000 m³ in 2024. The PVOIL 4U app for individual customers was officially launched in September 2024. B2B solutions, smart fuel station modernization, and the 2025–2030 digital strategy are also being implemented.

PVOIL is actively adapting to the ongoing energy transition and expanding non-fuel services to enhance fuel station efficiency.

Partnership with VinFast/V-Green: Since July 2022, PVOIL has operated EV charging stations. As of now, over 400 stations with nearly 2,300 chargers have been installed nationwide, contributing to business results and reducing risks as the market shifts from gasoline to electric vehicles.

Partnership with Highlands Coffee: PVOIL is piloting new business models like kiosks, trucks, and trailers. Since September 2024, Highlands Coffee has opened 9 outlets in 5 provinces/cities. The diversified non-fuel offerings help attract more customers to PVOIL stations, with ongoing surveys for further expansion.

Another key initiative is the development of rest stops along major north-south routes—especially for long-haul truck drivers on highways and national roads. Combining fuel stations with rest stops not only meets driver regulations on driving hours but also significantly boosts sales. Some rest-stop-format stations with air-conditioned trucker lounges have doubled their sales volume, offering new growth potential.

A positive update for shareholders: On January 10, 2025, PVOIL received a license from the Ministry of Industry and Trade to import and export Jet A1 aviation fuel. The company is accelerating preparations—working with airport partners and completing legal formalities—to begin operations in Q4/2025.

PVOIL will hold its 2025 Annual General Meeting of Shareholders online at 08:30 on April 25, 2025.

PVOIL petrol station in Hanoi offering non-fuel utility services.

PVOIL petrol station in Thanh Hoa integrates an electric vehicle charging station and a rest stop for long-haul trucks.