Petrolimex is expected to lose more than 1,000 billion VND in petroleum business in the first quarter

The information was answered by General Director of Vietnam Petroleum Group (Petrolimex) Luu Van Tuyen to investors at the general meeting of shareholders, April 24.

Mr. Tuyen said the group is likely to lose 1,000 billion VND from petroleum products in the first quarter of the year. The cause was unusual fluctuations in the world fuel market after the conflict in the Middle East increased since the end of February.

According to Petrolimex leaders, the world price of finished petroleum products fluctuates “unprecedented in history”, with some days increasing and decreasing by 20-50 USD/barrel. Typically, diesel prices jumped to 292 USD per barrel in March (an increase of nearly 4 times compared to February) but then dropped sharply to about 140 USD in April.

Meanwhile, import surcharges have reached 30 – 37 USD per barrel. This is an unprecedented number in history, but it is not fully reflected in the domestic retail fuel price.

“The cost of importing a 40,000-ton oil tanker has skyrocketed from 25-26 million USD to 85-87 million USD,” he said. According to Mr. Tuyen, when the price of finished diesel oil peaked at 292 USD per barrel, plus surcharges and increased freight rates, the total import cost reached 340 USD. In addition, Petrolimex must maintain high inventories and continuously import goods even when prices are at their peak to ensure reserves and national energy security.

Although the petroleum segment is facing difficulties, Petrolimex’s other business areas outside of petroleum still record good results and closely follow the set plan, according to General Director Luu Van Tuyen. He also affirmed that the group’s leadership will make every effort to ensure the rights of shareholders, even though the profit plan for 2026 may not be equal to 2025.

Sharing more, Petrolimex Chairman Pham Van Thanh acknowledged that petroleum is an essential commodity. If just one link in the supply chain is broken, it will immediately impact production costs and macroeconomic stability. In that context, Vietnam is still determined to ensure supply in all situations to protect economic growth goals.

Accordingly, Petrolimex – a petroleum enterprise that accounts for more than half of the market share – has a plan to prepare supply “early, from afar”. Solutions include maintaining high inventory levels, liaising with international suppliers, and coordinating warehouse systems, pipelines and retail networks.

“During the crisis, Petrolimex’s biggest advantage is not only its market share but its infrastructure capacity, moderation and ability to shoulder national responsibilities,” Mr. Thanh added.

At the congress, Petrolimex’s board of directors also responded about meeting the conditions of a public company according to the provisions of the Securities Law. According to Mr. Tran Tuan Linh, member of the Board of Directors, the group’s current shareholder structure includes state shareholders holding nearly 76%, strategic shareholders holding 13%. Other small shareholders only hold more than 9.4% – lower than the prescribed level of 10% for freely transferable shares (free-float) on the market.

According to Mr. Linh, the rate of freely transferable shares is lower than 10% due to too large state capital, which is a common situation of many enterprises after equitization of state-owned enterprises and listing on the stock exchange, not a problem unique to Petrolimex.

Petrolimex representative said that the Group has reported to the State Securities Commission and is waiting for detailed instructions. According to regulations, Petrolimex has a period of 1 year to implement solutions. Therefore, they reviewed and considered options such as selling treasury shares to increase the free-float ratio on the market, or divesting capital and reducing the State’s ownership ratio in Petrolimex.

“The Group affirms that it is always proactive and has prepared all scenarios. The plans will be implemented as soon as there is direction and approval from the competent authority,” Mr. Linh said.