How is Petrolimex doing under Mr. Dao Nam Hai?

(NLDO) - Since Mr. Hai took over as CEO of Petrolimex, the business situation of this enterprise has had many fluctuations.

The Ministry of Finance has just issued a decision to temporarily suspend the position of representative of state capital at the Vietnam National Petroleum Group (Petrolimex, stock code: PLX) for Mr. Dao Nam Hai, representative of state capital, member of the Board of Directors, General Director of this group, until there is a conclusion from the competent authority.

Before taking the position of CEO of Petrolimex from March 2022, Mr. Hai spent nearly 5 years as Deputy General Director, Member of the Board of Directors and General Director of Petrolimex Insurance Corporation (PJICO) for 8 years (April 2014 to March 2022).

In addition, Mr. Hai has held many key positions at Petrolimex member companies such as: Member of the Board of Directors of Petrolimex Construction Group Joint Stock Company 1, Member of the Board of Directors of Vietnam National Reinsurance Corporation.

According to records, since Mr. Hai took over as CEO of Petrolimex, the business situation of this enterprise has had many fluctuations.

Specifically, the company's after-tax profit in 2022 will reach VND 1,902 billion (down 39% compared to the previous year), VND 3,077 billion in 2023 (up 61% compared to 2022) and VND 3,161 billion in 2024 (only a slight increase of 3.3%).

Mr. Dao Nam Hai has just been temporarily suspended from his position as representative of state capital, member of the Board of Directors, and General Director of Peptrolimex.

Although profits have improved, compared to the 2016-2019 period, this result is still much lower.

In 2025, Petrolimex targets a revenue decrease of 13% compared to the results of 2024, with VND 248,000 billion and consolidated pre-tax profit of VND 3,200 billion, equivalent to a decrease of 19%.

At the end of the first quarter of 2025, Petrolimex recorded net revenue of more than VND 67,800 billion, down 9.6% over the same period.

After deducting expenses, Petrolimex's pre-tax profit reached VND358 billion, completing more than 11% of the annual profit target.

After tax deduction, Petrolimex reported a profit of VND210 billion, down more than 81% compared to the first quarter of 2024.

Explaining the decline in results, Petrolimex said the main reason was due to global market developments. Specifically, the price of WTI crude oil decreased from 77.8 USD/barrel at the beginning of the quarter to 67.04 USD/barrel at the end of the quarter, due to the impact of factors such as tariff policies, production decisions from OPEC+, geopolitical tensions and the economic situation of major economies.

"This has directly affected the cost of goods sold and led to an increase in inventory price reduction provisions at the end of the quarter in accordance with current regulations," Petrolimex explained.

By the end of the first quarter of 2025, Petrolimex's inventory value was VND16,012 billion, accounting for 20% of total assets, a fairly high rate compared to industry practice. Notably, the inventory price reduction provision increased by 354% compared to the beginning of 2025, to VND334 billion.

In addition, the value of Petrolimex's cash and cash equivalents portfolio by the end of the first quarter of 2025 also decreased sharply (more than 30%) compared to the beginning of the year, down to VND 10,446 billion, of which cash equivalents (short-term investments...) decreased the most, from VND 9,603 billion to VND 3,527 billion (equivalent to a decrease of 63%).

On the stock exchange, PLX shares increased by 1.1% in the morning session on May 8, to VND33,900/share. However, compared to the beginning of April 2025, this stock decreased by 14% and decreased by nearly 10% compared to the beginning of the year.

Source: https://nld.com.vn/petrolimex-lam-an-ra-sao-duoi-thoi-ong-dao-nam-hai-196250508120748159.htm