PETROVIETNAM OIL CORPORATION

The subject - PVOIL is a member of VIETNAM OIL AND GAS GROUP that is involved in the downstream development stage of the oil and gas industry (the last step in the chain of six areas of operations of the Group). It is the only unit in the Group that is responsible for authorized services for export-import of crude oil. The main activities of this company including: International trading of crude oil and petroleum products; Retailing and distributing of petroleum products; Processing of petroleum lubricants and biofuels. In the field of oil and petroleum business, PVOIL is ranked the second position, after the first position of VIETNAM NATIONAL PETROLEUM GROUP (PETROLIMEX). The company's shares - OIL were approved for trading on Unquoted Public Company or Unlisted Public Company (UpCOM) on 07 Mar 2018. In 2022, the subject had a petroleum distribution system in 64 provinces and cities across the country with nearly 2,200 petrol stations, including 655 affiliated petrol stations and 1,500 petrol agents/franchised stations.

On 26 Apr 2019, PVOIL leaders affirmed that they would carry out the divestment of state capital in PVOIL to 35.1% with an aim of enhancing efficiency to shareholders as well as PVOIL's competitiveness in the market. However, VIETNAM OIL AND GAS GROUP still holds 80.52% of the subject's capital.

In the first 6 months of 2022, the world gasoline price continuously increased. However, from the end of Jun to Sep, world prices reversed and decreased continuously due to concerns about economic recession, inflation pressure... The State adjusted to decrease retail prices of petroleum products in Q3/2022. Meanwhile, the source of goods was scarce, the cost of bringing gasoline from abroad to Vietnam, the cost of bringing gasoline from the refinery to the port also increased, and interest costs and foreign exchange rates increased higher. In the context of a sharp drop in gasoline prices, big companies in the industry also experienced a negative quarter results. In which, PVOIL reported a loss of VND 373 billion in the third quarter of 2022. Similarly, PETROLIMEX also suffered a loss in the petroleum segment in this quarter. THANH LE CORPORATION (THALEXIM) achieved revenue of VND 7,631 billion but the cost price grew higher, so the gross loss was nearly VND 25 billion.

However, experts say that while recent market turmoil may put pressure on PETROLIMEX and PVOIL's profits, but this can also be an opportunity for market leaders to improve their position in the long term, as many petrol stations will switch to buying goods from big hubs with stable inputs. According to the Ministry of Industry and Trade, inventories at some key suppliers such as PETROLIMEX, PVOIL, THALEXIM are still maintained at a safe level to meet domestic demand. In the coming time, the increase in premium and transportation costs in the structuring of gasoline retail prices may help the above petrol distributors' profits in the fourth quarter to increase compared to the third quarter. In addition, the recovery of recent declines in world oil prices can also help these companies in terms of inventory benefits.

In 2022, thanks to a good response to fluctuations in oil price and supply in the market, PVOIL increased output and maximized business efficiency in the first 6 months. In addition, the subject also controlled and minimized losses in the last 6 months. PVOIL exceeded business targets. In spite of optimistic business result in 2022, PVOIL still approves production, business and financial plans with prudent targets to ensure efficiency and preserve capital in the context that the world and domestic market situation continues to be unpredictable in 2023.