Petrolimex posts Q2 loss despite rising fuel prices

Vietnam’s biggest fuel distributor said it was forced to increase imports to offset the reduced capacity of the Nghi Son Refinery, which partly accounted the losses.

Besides, it had to make a provision of VND1.26 trillion in July for its inventories due to concerns fuel prices could drop.

Gasoline prices have fallen four times and by a total of 22 percent since June 21.

For the first six months Petrolimex’s post-tax profit was down 87 percent year-on-year to VND302 billion.

The company, which has a 48 percent market share, targets pre-tax profits of VND3.06 trillion this year.

Its competitor with a 20 percent market share, PVOil, in contrast saw post-tax profit rise by 40 percent to VND793 billion in the first half.

The Ministry of Industry and Trade said global oil prices remain unpredictable, and the domestic gasoline price could rise to VND31,000 per liter in the third quarter before declining to VND24,000 by the end of the year.