The Dung Quat refinery in Quang Ngai province is operated by Binh Son Refining and Petrochemical Company Limited (Photo: bsr.com.vn)
Hanoi (VNS/VNA) -
Surging international crude oil price on improving demand
has helped many oil and gas companies record big profits in the first quarter
of this year, after losing in 2020.
In the first quarter financial result, Vietnam National Petroleum Group
(Petrolimex, PLX) posted a slight fall of 0.6 percent in net revenue to nearly 38.2
trillion VND (1.6 million USD). However, it was still profitable thanks to a
cut in expenses in financial activities and others, and gains in other
Of which, the company's profit after tax was nearly 736.2 billion VND in the
first quarter after reporting a loss of 2.3 trillion VND in the same period
During the period, Petrolimex's domestic output rose 4.7 percent year-on-year
to 2.27 million m3. Retail sales accounted for 55 - 60 percent of its
total sales but contributed around 80 percent of its profit.
SSI Securities Corporation (SSI) said that the company's production growth will
continue until the first half of the second quarter, boosted by the
Government's restriction on illicit petrol, especially in the south.
Similarly, Binh Son Refining and Petrochemical Company Limited (BSR) witnessed
its revenue reach 21 trillion VND in the first quarter with a profit of
over 1.8 trillion VND, while it reported a loss of 2.33 trillion VND in the
same period last year.
The main driving force for the recovery in profit was higher crude prices in
the international market and crack spread of gasoline products.
Crack spread is the spread created in commodity markets by purchasing oil
futures and offsetting the position by selling petrol and heating oil
PetroVietnam Oil Corporation (PVOIL)'s profit after tax was 190.6 billion VND,
after losing 537.7 billion VND in the same period last year.
Notably, Thu Duc Trading & Import Export JSC (TMC) even reported net profit
of more than 4 billion VND, nine times higher than that of last
Another company witnessing profit rise sharply was Nam Song Hau Trading
Investing Petroleum JSC (PSH). The company's revenue was up 10 percent over
last year to more than 1.7 trillion VND, resulting in a profit of 44 billion
VND, 2.1 times higher than that of the same period in 2020.
Even though there were still some companies recording declines in profit
or even losses during the first quarter, in general, oil and gas
companies' results were quite positive.
With positive oil demand outlook, the oil price is expected to continue to
rally. Therefore, there is still more room for oil and gas firms to
SSI forecasted that Brent crude price will trade at an average of 68 USD per
barrel in 2021, up 62.6 percent year-on-year, and can even go up to 70 USD in
According to SSI, developed economies are gradually opening again as they have
pushed the vaccination rollout. Businesses activities will also recover quickly
when countries continue to ease measures to contain COVID-19.
Brent crude was traded at 74.23 USD per barrel on June 17, and on track to
head toward 75 USD./.