PETROLIMEX DANANG COMPANY LIMITED

PETROLIMEX DANANG COMPANY LIMITED (CÔNG TY XĂNG DẦU KHU VỰC V - TNHH MỘT THÀNH VIÊN) is a one-member limited liability company wholly owned by Vietnam National Petroleum Group (Petrolimex). With Business ID 0400101683, the company is headquartered at 122-2/9 Street, Binh Thuan Ward, Hai Chau District, Da Nang City, and has operated for over 14 years since its registration on July 15, 2010.

Core Business and Management

PETROLIMEX DANANG specializes in the wholesale distribution of solid, liquid, and gaseous fuels and associated petroleum products. This includes petrol, diesel, lubricants, and supporting storage and logistics services. Its registered business lines also extend to food, household goods, machinery, and even property trading—though petroleum sales overwhelmingly drive its revenue.

The company is led by Mr. Duong Thai Son, who serves as Chairman cum Director. As of 2023, it employed approximately 500 people and maintained regional operations, including a branch in Quang Nam Province.

Financial Performance Overview (2023)

• Revenue: USD 292.38 million (▼ 23.2% YoY)

• Profit: USD 913,039 (▲ 159.21% YoY)

• Assets: USD 15.19 million (▼ 23.33% YoY)

• Equity: USD 8.11 million (▼ 27.08% YoY)

• Working Capital: USD -5.05 million

Despite a healthy rebound in net profit, the company posted declines in both revenue and asset value, with equity eroding significantly. Working capital remained negative, indicating liquidity stress and potential dependence on short-term liabilities.

Interpreting the Numbers: Sales Volume vs. Financial Fragility

While PETROLIMEX DANANG’s total sales stayed high, its financial health weakened notably. The drop in assets and equity suggests reduced investment or depreciation without reinvestment. Meanwhile, the positive profit, although a sharp recovery from 2022, may not fully offset structural concerns—especially the consistent negative working capital, which exposes the company to operational risk.

This imbalance—high sales, low retained earnings, shrinking equity—is not uncommon in state-owned fuel companies where pricing, regulation, and supply policies tightly constrain profitability.

Strategic Importance in Vietnam’s Energy Network

As a regional distribution arm of Petrolimex, PETROLIMEX DANANG plays a critical role in ensuring fuel supply across central Vietnam, particularly for Da Nang and Quang Nam provinces. Its performance directly impacts local energy security, supply chain continuity, and regional economic activity. The firm operates under the tight oversight of Vietnam’s state energy apparatus, which shapes its pricing power, import strategies, and retail margins.

Final Assessment: Stability with Limits

PETROLIMEX DANANG COMPANY LIMITED demonstrates operational consistency and remains a cornerstone of central Vietnam’s fuel infrastructure. However, declining assets, shrinking equity, and negative liquidity point to internal financial pressures. For partners, contractors, and institutional buyers, the company remains dependable but not without risks.

Before entering into contractual or credit relationships, third-party verification is essential. VANGUARD BUSINESS INFORMATION LLC (VBI) provides accurate credit reports, risk profiling, and business verification services tailored to Vietnam’s petroleum sector. Such assessments are critical for understanding whether sales volume translates into financial strength—or merely masks structural weaknesses.