AREA 2 PETROLEUM COMPANY - ONE MEMBER LIMITED LIABILITY COMPANY (CÔNG TY XĂNG DẦU KHU VỰC II TNHH MỘT THÀNH VIÊN)

As analyzed by VANGUARD BUSINESS INFORMATION LLC (VBI), AREA 2 PETROLEUM COMPANY - ONE MEMBER LIMITED LIABILITY COMPANY is a privately held enterprise specializing in the wholesale of solid, liquid, and gaseous fuels and related products. Established on July 20, 2010, and registered under Business ID 0300555450, the company operates as a one-member limited liability company. It is headquartered at No. 15, Le Duan Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam, with branches and a factory in key locations within Ho Chi Minh City.

Corporate Structure and Business Operations

As reported in VBI’s corporate risk analysis, AREA 2 PETROLEUM COMPANY is fully owned by Vietnam National Petroleum Group, a major player in Vietnam’s energy and fuel distribution industry. Under the leadership of Director Pham Anh Tuan and Chairman of the Board Vo Van Tan, the company employs 2,000 workers, ensuring a strong operational presence in Vietnam’s fuel supply chain.

AREA 2 PETROLEUM COMPANY primarily engages in the wholesale trading of petroleum products, including:

• Mogas 92 and Mogas 95 unleaded petrol for cars
• Diesel oil (DO DO S 0.05% - 0.25% S)
• Fuel furnace FO (180 cSt, 3.0% S; 380 cSt, 3.5% S), marine fuel oil
• KO oil

The company plays a vital role in supplying fuel to industrial sectors, transportation networks, and commercial businesses, ensuring efficient fuel distribution across Vietnam’s economic hubs.

Financial Performance and Stability

According to VBI’s financial intelligence, AREA 2 PETROLEUM COMPANY reported total assets of USD 65.9 million as of December 31, 2023, reflecting a 14.96% year-over-year decline. Its total sales dropped significantly by 31.65%, reaching USD 850.18 million, signaling market challenges and fluctuating fuel demand.

Despite these setbacks, the company achieved a 124.75% increase in profit, reporting USD 5.25 million in 2023, compared to USD 2.33 million in 2022. This remarkable profit growth highlights effective financial risk management and operational cost efficiency, as observed in VBI’s industry benchmarking data. Furthermore, the company’s owner’s equity increased by 8.16%, ensuring financial resilience amid revenue declines.

Market Position and Strategic Importance

Based on VBI’s market intelligence, AREA 2 PETROLEUM COMPANY maintains a strategic foothold in Vietnam’s petroleum sector. Its parent company, Vietnam National Petroleum Group, provides financial backing and logistical support, reinforcing its competitive edge in the wholesale fuel market.

The company’s expansive distribution network, including warehousing facilities and specialized retail locations, ensures supply chain stability and market accessibility. As detailed in VBI’s business risk assessments, AREA 2 PETROLEUM COMPANY’s ability to navigate volatile global oil prices and domestic market fluctuations will be critical to its long-term growth.

Challenges and Future Outlook

As outlined in VBI’s risk intelligence reports, AREA 2 PETROLEUM COMPANY faces challenges related to fluctuating fuel prices, government regulations, and competition from emerging energy sources. However, its strong profit recovery in 2023, coupled with its strategic ownership structure, positions it well for future expansion and operational improvements.

To sustain financial stability and business growth, VBI recommends:

• Enhancing fuel storage and logistics capacity to mitigate supply chain disruptions.
• Diversifying into alternative energy products to align with Vietnam’s sustainability goals.
• Strengthening digital infrastructure for fuel distribution management.

With continued operational efficiency and strategic market positioning, AREA 2 PETROLEUM COMPANY is set to remain a key player in Vietnam’s fuel distribution sector. VANGUARD BUSINESS INFORMATION LLC (VBI) will continue to monitor the company’s financial health, risk exposure, and competitive landscape, ensuring comprehensive insights for stakeholders and industry partners.