Vietnam Airlines’ fuel distributor makes bigger profits

Vietnam Airlines has yet to announce Skypec’s results, but the latter’s management informed a meeting earlier this year that it had realized approximately 180% of its pre-tax profit target of VND100 billion set for 2022.

Skypec sold 650,000 cubic meters of jet fuel and made profits of more than VND100 billion in 2021. The respective figures for 2020 were over 900,000 cubic meters of jet fuel and VND31 billion.

The fuel distributor reported profits of more than VND650 billion in 2019, VND321 billion in 2018 and VND392 billion in 2017.

Before the Covid-19 pandemic broke out, Skypec, wholly owned by Vietnam Airlines, was one of the biggest money spinners for the national flag carrier.

Skypec and Petrolimex Aviation are the two biggest jet fuel distributors in Vietnam.

Skypec has total storage capacity of over 220,000 cubic meters, including at major seaports and 18 airports, and can fuel 214,000 aircraft annually, serving domestic airlines and nearly 100 foreign carriers.

Vietnam Airlines is looking for a consultancy to help it sell a stake in Skypec amid the threat delisting from the stock market for making losses.

According to VnExpress’ sources, some domestic investors are interested in buying stakes in Skypec.

As of last year Vietnam Airlines had an accumulated loss of VND34.2 trillion.

Last year the carrier had to sell a 35% stake in Cambodia Angkor Air for $35 million to increase its equity to avoid delisting.