Petrolimex revenues drop but profits rise 50%

Thien Thanh Sanitaryware joint company

Petrolimex revenues drop but profits rise 50%

Even though revenue in the first nine months of this year dropped slightly by 3 percent compared to the previous year, Vietnam’s largest fuel wholesaler Petrolimex still enjoys a profit surge.

The company’s sales from January to September topped VND149.78 trillion (US$7.07 billion), some 3 percent lower than the VND154.57 trillion recorded on the same period last year, according to Petrolimex’s Q3-2013 financial report released on Tuesday.

But its pre-tax profits in nine months dramatically rose 50 percent, from VND1.03 trillion last year to VND1.58 trillion this year, the report shows.

Post-tax earnings stood at VND1.41 trillion, also a strong 57.44 percent increase from the same period last year.

Petrolimex attributed the soaring profits to slumping financial costs and lower cost prices.

Petrolimex has constantly provoked criticism from local consumers over what the latter blamed as unreasonable fuel price hikes.

The wholesaler increased prices by much greater amounts than when making price cuts.

In the latest adjustment on November 11, Petrolimex cut petrol by a mere VND250 per liter.

It was the third price cut in a row since late August, following the VND390 per litre reduction on October 7, and VND300 per litre on August 22.

But its price hikes are always much higher. On July 15, petrol prices were hiked to VND460 per litre, while the respective increases on June 27 and June 14 were VND370 and VND426 per litre.

These are nothing compared with the price hike on March 28, when prices was set to go up by VND1,430 per litre.