Petrolimex: business on track following restructure

Hanoi (VNA) – Prime Minister Nguyen Xuan Phuc sent a working group to the Vietnam National Petroleum Group (Petrolimex) on September 25 to examine the firm’s implementation of tasks assigned by the Prime Minister and the Government so far.

According to Pham Van Thanh, Chairman of Petrolimex Board of Management said that in 2017, the firm earned 153 trillion VND (6.57 billion USD), with pre-tax profit reaching over 4.78 trillion VND (205.54 million USD). It contributed more than 38 trillion VND (1.63 billion USD) to the State budget over the year.

In the first eight months of 2018, Petrolimex’s pre-tax profit was 3.43 trillion VND (147.49 million USD) and its State budget payment was 29 trillion VND (1.24 billion USD).

So far, Petrolimex has finished restructuring by completing the formation of six corporations running under the model of parent-subsidiary companies, as well as joint stock companies for the 2013-2017 period.

On July 4, 2018, the firm asked for an extension from 2018 to the 2019-2020 period for its capital divestment deadline, and a rise in its foreign ownership cap to 49 percent.

This year, Petrolimex is scheduled to complete the merging of Petrolimex Group Commercial Joint Stock Bank into the Ho Chi Minh City Development Bank, which is expected to raise Petrolimex’s profits by 1 trillion VND.

Meanwhile, Petrolimex Deputy General Director Tran Ngoc Nam reported that 47 percent of petrol sold in the first eight months of 2018 was bio-fuel E5 Ron 92.

Addressing the working session, Vice Chairman of the Government Office Nguyen Cao Luc hailed the company’s efforts, noting that the market capitalisation of the firm has increased 5.6 times from about 16 trillion VND in 2011 to 90 trillion VND when the firm switched from a State-owned company to a joint stock firm at present.

The group has also dominated the country’s petrol market with a 48 percent share, showing strong economic performance, he said.

Luc asked the group to ensure its development is on track and sustainable, while distributing its resources effectively and implementing capital divestment in line with directions from the Government.

At the same time, Petrolimex should improve its capacity in business management and governance, while promoting administrative reform, reducing costs, coordinating closely with other firms such as PetroVietnam and Electricity of Vietnam, and preventing trade frauds. –VNA