Petrolimex sets target of raising profit by 42% in 2023

According to a document sent to the upcoming annual shareholders' meeting 2023, Petrolimex set its revenue target at VND190 trillion and the sales volume of petroleum products at 12.95 million cu.m, marking an annual decrease of 38% and 7%, respectively. It also plans to propose a dividend rate of 10% for this year.

Petrolimex said 2023 is considered a pivotal year in the implementation of its 2021-2025 production, trade and investment plan. However, the company continues its business operation while the global economic growth is predicted at about 2%, significantly lower than in 2022 and much lower than the pre-COVID-19 pandemic decade average.

Domestically, Vietnam's GDP is projected to grow by some 6.5%, leading to potential increased consumption of petroleum products. However, the petroleum market is still forecast to face various risks.

To achieve the set targets, Petrolimex is focusing on a set of harmonious measures. Specifically, to ensure supply, it is following signed contracts with two domestic oil refineries, actively seeking sources for import at competitive prices and taxes, and building contingency plans in case domestic refineries fall into troubles.

Petrolimex will continue improving market forecasting, closely control sales activities, and make timely and concerted adjustments related to sourcing, logistics, inventory management, pricing strategies, and sales policies, in response to any unforeseen factors. The optimisation of cargo transportation routes from warehouses to petrol stations is also being pursued to improve its business efficiency. The calculation of targeted inventory days is being completed to ensure reasonable reserves and efficient resource allocation, thereby enhancing competitiveness.

With business support solutions, Petrolimex will closely follow petroleum trading mechanism according to Document 926/PLX-CSKD dated June 26, 2022. It will continue to enforce strict sales conditions for distributors to mitigate risks and losses. Petrolimex will develop a product strategy that ensures market coverage and effective business operations. Additionally, it will develop operational scenarios and sales strategies for potential uncertainties.

Petrolimex also focuses on developing a selective network of franchisees, expanding the network of petrol stations, especially along highways, main roads, provincial routes, and major cities. It keeps up with new directions in developing petrol stations according to new standards that are modern, convenient and able to enhance customer experience, such as the pilot model of truck service stations. Petrolimex conducts research and development to introduce feasible new services, and enhances the application of technology to optimise operational efficiency and commercial advantages at petrol stations.