Vietnam’s largest fuel wholesaler, Petrolimex, posted nearly US$54 million in losses in the last quarter of 2014, but it said the continually dropping oil price was not the only cause for the negative result.
The company, fully known as Vietnam National Petroleum Group, incurred VND1.145 trillion ($53.36 million) worth of losses in the previous quarter due to slumping oil prices and “several objective reasons,” according to a report it submitted to the State Securities Commission of Vietnam.
“Most of the fuel businesses have posted losses,” Petrolimex said, adding the oil collapse was only one of the three main causes.
The second reason for the loss, according to Petrolimex, is the new formula to calculate the fuel base price.
While the base price used to be based on the average price over 30 days, the new regulation reduces the period to 15 days.
“We would not have suffered the loss if the old formula had remained in use,” the company said in the report.
The last culprit behind the steep loss is the foreign exchange difference during the fourth quarter of last year, whereas many Petrolimex subsidiaries operating in the fuel sector also posted losses due to the depressed oil prices.
Petrolimex has units that operate in the fields of insurance, transportation, construction, and other services, according to its website.
The company previously announced profits in the Jan-Sep period of last year estimated at VND1.4 trillion ($65.24 million), which means a VND255 billion ($11.88 million) bottom line for the entirety of 2014.
In 2013 Petrolimex enjoyed a VND1.92 trillion ($89.9 million) profit, a massive increase of 97 percent compared to 2012.