Petrolimex targets revenue and profit drops hinh anh 1At the meeting (Photo: Internet)
Hanoi (VNS/VNA) - The Vietnam National Petroleum Group (Petrolimex or PLX) forecast a drop in both revenue and profit this year due to the decline in demand amid the COVID-19 pandemic.

The information was released during its Annual General Meeting of shareholders held in Hanoi last week.

The group targets to earn 122 trillion VND (5.3 million USD) in revenue, equivalent to 64 percent of that recorded in 2019. Pre-tax profit is expected to reach 1.57 trillion VND, equalling 28 percent of last year’s figure.

Petrolimex plans to sell 11.47 million cubic meters of petrol this year, equivalent to 83 percent of the selling output in 2019. Dividend payout ratio for 2020 is forecast at 12 percent.

The group’s general director Pham Duc Thang said the spread of the COVID-19 pandemic had caused a sharp decline in oil consumption worldwide due to blockades and travel restrictions.

“The oversupply of oil, rampant production by producers and an exhaustion of storage capacity drove West Texas Intermediate crude to a negative price for the first time in history, closing at -37.63 USD per parrel on April 20,” he said.

From January 1, the use of new marine fuels will comply with the provisions of the World Maritime Organisation (IMO), causing the price of new fuels to increase by 50 per cent, making sea transport costs rise sharply in 2020 compared to 2019, Thang said.

He added that in 2020, the group is focuses on the acceleration of the My Giang Power Center project to carry out trial operations in the fourth quarter of 2025.

The group will also develop a plan to reduce State capital to 51 percent, reducing its holding in Petrolimex Insurance Joint Stock Company to 35.1 percent and successfully merging PGBank and HDBank.

“In the past eight years operating as a joint stock company, Petrolimex has consistently achieve higher production and business results through years. However, in 2020, the COVID-19 pandemic has disrupted business and production activities of Vietnamese enterprises, including Petrolimex,” Ho Sy Hung, Vice Chairman of the Vietnam Committee for State Capital Management told the meeting.

“It is necessary for Petrolimex to adjust the business targets in 2020. The Committee for State Capital Management will accompany and assist Petrolimex in carrying out the tasks of production, business and development investment in 2020,” Hung said./.