PETROLIMEX AVIATION FUEL JOINT STOCK COMPANY

PETROLIMEX AVIATION FUEL JOINT STOCK COMPANY (CÔNG TY CỔ PHẦN XĂNG DẦU HÀNG KHÔNG PETROLIMEX) is a key supplier in Vietnam’s aviation fuel sector, specializing in the wholesale distribution of liquid fuels for the aviation industry. Established on April 28, 2008, the company operates as a joint stock company with state investment, primarily controlled by VIETNAM NATIONAL PETROLEUM GROUP (holding 59% ownership). Its headquarters are located at Mipec Building, Dong Da District, Hanoi, with major branches at Noi Bai, Da Nang, and Cam Ranh International Airports, ensuring efficient fuel supply nationwide.

Economic Performance and Market Presence

In 2023, PETROLIMEX AVIATION reported total assets of USD 256.47 million, an increase of 4.43% from the previous year. Total sales reached USD 959.47 million, reflecting a 14.78% growth, largely driven by post-pandemic recovery in air travel. However, net profit declined significantly by 75.05% to USD 3.65 million, indicating higher operational costs or tighter profit margins. Owner’s equity also declined by 11.71%, raising concerns about financial sustainability despite revenue growth. The company employs 440 workers, supporting its fuel distribution network and logistics operations.

Key Advantages of PETROLIMEX AVIATION

• Strategic Positioning – As a state-backed entity, the company benefits from strong government support and long-term fuel supply contracts with Vietnam’s leading airlines.
• Revenue Expansion – The 14.78% increase in sales reflects rising fuel demand in Vietnam’s aviation sector, driven by tourism growth and airline fleet expansions.
• Nationwide Distribution Network – The company operates in Vietnam’s major airports, ensuring reliable fuel availability for domestic and international flights.
• Diverse Business Activities – Apart from aviation fuel, PETROLIMEX AVIATION engages in freight transport, warehousing, and leasing services, creating additional revenue streams.

Challenges and Market Risks

• Declining Profitability – The sharp 75.05% drop in profit suggests rising operational costs or pricing pressures, affecting overall financial stability.
• Equity Reduction – The 11.71% decline in owner’s equity raises concerns about financial resilience and future investment capacity.
• Market Competition – The Vietnamese aviation fuel sector faces increasing competition from private fuel distributors, impacting market share and pricing power.
• Oil Price Volatility – Fluctuations in global oil prices directly affect aviation fuel costs, posing financial risks and requiring strong risk management strategies.

The Importance of Company Reports in Risk Management

Accurate financial reporting and company analysis are critical for investors, suppliers, and industry stakeholders. A detailed company report provides essential insights into financial performance, risks, and market positioning, allowing businesses to make informed decisions and mitigate potential financial exposure.

The Role of VANGUARD BUSINESS INFORMATION (VBI) in Corporate Analysis

VANGUARD BUSINESS INFORMATION (VBI) plays an essential role in corporate risk assessment, providing comprehensive financial insights and market evaluations. Through detailed financial tracking, operational analysis, and industry benchmarking, VBI enables investors, fuel suppliers, and policymakers to make data-driven decisions and minimize investment risks.

Conclusion

PETROLIMEX AVIATION remains a key player in Vietnam’s aviation fuel industry, benefiting from government support and strategic market positioning. However, declining profitability and rising financial risks require careful management and strategic adjustments. For investors, airlines, and fuel suppliers, reports from VBI serve as a critical tool for evaluating financial health, market trends, and long-term investment opportunities in Vietnam’s energy and aviation sectors.