PETROVIETNAM OIL NAM DINH JOINT STOCK COMPANY

PETROVIETNAM OIL NAM DINH JOINT STOCK COMPANY (short name: PV OIL NAM DINH, stock code: PND, listed on UPCOM) is a petroleum distributor operating primarily in northern Vietnam. Established in 2010 and headquartered in Nam Dinh City, the company is a public joint stock company affiliated with PETROVIETNAM OIL CORPORATION, which holds a 56.75% controlling interest.

Led by TON Q. B. as Director, the company operates a retail and wholesale fuel network across Nam Dinh, Ha Nam, and Ninh Binh provinces, supported by over 300 employees. PV OIL NAM DINH’s main activities include the distribution of petroleum products, warehousing, and freight transport.

In 2023, the company achieved USD 120.48 million in revenue, up 10.5% year-over-year. Net profit rose to USD 270,798, representing a 57.5% increase, suggesting improved cost control or pricing. However, a closer look reveals structural weaknesses. Despite strong top-line growth, the company’s total assets declined by 9.6%, and working capital turned negative at USD -515,544—an indication of short-term liquidity stress. Equity remains modest at USD 1.73 million, with a relatively thin capital cushion to absorb market or operational shocks.

While profit growth appears encouraging, the profit margin remains extremely slim (just 0.22% of revenue), and balance sheet pressure is evident. Given its reliance on a volatile commodity, high fixed infrastructure, and thin profitability, the company is exposed to risks from oil price swings, credit cycles, and payment delays—particularly without stronger capitalization or working capital buffers.

From a critical evaluator’s standpoint, PV OIL NAM DINH is commercially active but financially fragile. The company needs to stabilize its asset base and resolve negative working capital to be considered a safe credit counterpart or investment target. For now, it operates in a high-volume, low-margin environment that demands careful monitoring, especially if expansion or larger credit lines are under consideration.