Petrolimex official denies doubt about its profit

Petrolimex’s pre-tax profit of VND388 billion (USD18.47 billion) in its fuel trading in the first half of this year has drawn some scepticism but, a firm official stood by the figure.
 

Petrolimex’s pre-tax profit of VND388 billion in its fuel trading in the first half of this year has drawn some scepticism

According to Vietnam National Petroleum Group (Petrolimex)’s financial report, total profits in the first six months of this year were VND898.32 billion (USD42.76 million) including VND388 billion from fuel trading.
Deputy Director of Petrolimex, Tran Ngoc Nam, said Petrolimex clearly explained the reasons for the high profits on its website, adding that it earned only an average VND94 per litre of fuel, as it is currently stipulated that fuel wholesalers enjoy a maximal profit of VND300 per litre, according to a circular by the Ministry of Finance.
“The profits show that Petrolimex earned the maximal profit in a certain time during the first half and also suffered from losses at other times. However, it does not mean that the whole business period should be considered a loss. I think that there is no contradiction in Petrolimex’s fuel trading profit,” Nam said.
“I am very disappointed at the way some newspapers have commented on our financial reports. Anyone who does business wants to have profits. If not, the government could turn the petroleum businesses into a public-service," he added.
He also noted that, “We are so tired of this issue. The Ministry of Industry and Trade initially brought it up as an issue, but it was thereafter turned into a public relations issue as the media picked up on it."
He went on to say that petroleum companies have never been allowed to decide retail fuel prices. In the first quarter of 2010, they were permitted to do so in line with Decree 84, but after that due to the global market’s price changes, they were not.
The Petrolimex official also said that, with a large market share, his firm has to continuously import petroleum to ensure the 30-day storage and they do not have a right to select the import time.
Meanwhile, for many other companies are allowed to change their import time, for example, they do not import the fuel when the global price is too high and, import more when the price is lower. This will help to generate profits for them and they can give higher commissions to agents. However, it is not the case for Petrolimex.

Category: BUSINESS