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Petrol companies to benefit from rising prices

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A customer at a Petrolimex station in Hà Nội. As business activities recover again, the demand for petrol has increased. — VNA/ Photo Trần Việt

HÀ NỘI — Petrol producers and traders are expected to benefit from low-priced inventories as the price of petrol rises.

The two leading enterprises in the industry, Petrolimex and PV Oil, recorded that the value of their inventories at the end of the first quarter was nearly double the beginning of the year.

Petrol price has been adjusted up five consecutive times to reach VNĐ31,250 per litre, a rise of 31.3 per cent compared to the beginning of the year.

According to a report by the Ministry of Industry and Trade, the world petrol market has undergone many great changes in recent years. Supply to the market, especially to the European region, continues to be affected by the embargo on products from Russia, while US crude oil inventories continue to remain low.

These factors have pushed up petrol prices. During the price management period from May 11 to May 23, the average world price of petrol products reached US$141.4 per barrel, up 64 per cent compared to the beginning of this year. Diesel oil reached $142 per barrel, up 67 per cent and kerosene touched $137.9 per tonne, up 64.6 per cent.

In the domestic market, as business activities recover again the demand for petrol has increased.

By May 23, the petrol price had increased for the fifth time in a row and set a new record. Specifically, the price of RON 95-V gasoline in region 1 reached VN Đ31,250 per litre, up 31.3 per cent compared to the beginning of this year and up 59 per cent over the same period last year. Diesel prices reached VNĐ26,350 per litre, up 47 per cent compared to the beginning of the year and 74.3 per cent over the same period last year and kerosene prices reached VNĐ24,400 per litre, up 48 per cent and 76.6 per cent, respectively.

In the context of increasing prices, the inventory value of many petrol businesses also increased sharply. Considering the five petrol production and trading units listed on the stock exchange, the value of inventory at the end of the first quarter reached VNĐ49.3 trillion, up 47 per cent compared to the beginning of the year.

By the end of Q1, Petrolimex (PLX) had the largest inventory of VNĐ24.25 trillion, up 84.2 per cent compared to the beginning of the year.

PV Oil (OIL) doubled its inventory value from VNĐ2.58 trillion to VNĐ5.16 trillion. 

For petrol manufacturers such as Bình Sơn Refinery and Petrochemical (BSR), inventories at the end of the quarter reached VNĐ11.94 trillion, an increase of 15.3 per cent compared to the beginning of the year. 

According to many analysists, the rising oil price is expected to help petrol producers and traders improve their profits thanks to low-priced inventories.

With demand recovering and gasoline prices increasing sharply, the revenue of most petrol production and trading enterprises increased sharply but profits were quite divergent. Profit margins mostly fell.

Bình Sơn Refinery (BSR) reported a 65 per cent increase in revenue to VNĐ34.78 trillion; profit after tax reached VNĐ2.3 trillion, up 23.7 per cent. Gross profit margins decreased from 9.7 per cent to 7.5 per cent.

PV OIL (OIL)’s revenue doubled from the same period last year to VNĐ23.29 trillion. Gross profit margins decreased from 6.6 per cent to 4.5 per cent and net profit increased only 54 per cent to VNĐ219 billion.

Petrolimex reported that first-quarter revenue increased 75 per cent to VNĐ67 trillion and profit after tax decreased by 65 per cent ​​to VNĐ208 billion.

The group said demand recovered after production and business activities gradually returned to a normal pace. However, its Nghi Sơn Refinery and Petrochemical Factory was scheduled to cut production output to below 55-80 per cent. With the leading role in the distribution of petroleum in the domestic market, to ensure uninterrupted supply and timely response to domestic demand, the group has changed its import plan and sought immediate supply with high prices from other suppliers, reducing gross profit margins in the petroleum business. —

Source: https://vietnamnews.vn/economy/1205279/petrol-companies-to-benefit-from-rising-prices.html

Business

Vietnam targets 7% GDP growth this year: minister

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HANOI — Vietnam is aiming for economic growth of 7% this year, the country’s planning and investment minister said on Monday, higher than an official target of 6.0%-6.5% set previously.

To achieve this, year-on-year economic growth in the third quarter needs to be 9.0% and in the fourth quarter 6.3%, minister Nguyen Chi Dung also said during a government meeting.

Dung said Vietnam’s budget was in surplus, giving scope for fiscal policy to be used to support businesses and residents.

“Credit institutions will need to further cut their lending interest rates to reduce input cost pressure for businesses and for the economy,” he said.

Vietnam, a regional manufacturing hub, started lifting its coronavirus curbs late last year, allowing factories to resume full operations.

The economy is recovering after growing only 2.58% last year, the slowest pace in decades.

The Southeast Asian country reported GDP growth of 7.72% in the second quarter, backed by strong export growth, but warned of upward inflation pressure for the rest of the year. 

Source: https://tuoitrenews.vn/news/business/20220704/vietnam-targets-7-gdp-growth-this-year-minister/67932.html

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Vietnam spends $40bln importing computers, electronic components since early 2022

Computers and electronic components continue to be the lead group of imported goods, with a turnover of approximately $40 billion, according to the latest data from General Department of Customs.

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From the beginning of the year to June 15, the country spent $39.62 billion importing computers, electronic products, and components, an increase of 29.3% from a year ago.

Computers, electronic products, and components remain the largest import item of Vietnam, accounting for 23.36% of the total import turnover of the economy.

The second-largest imported goods were machinery, equipment, tools, and spare parts with $20.43 billion. The largest import market of this product group was Asia.

Importing computers, electronic products, and components from South Korea was $10.53 billion, a sharp increase of 44% from an earlier year. China was after South Korea with $10.36 billion, up 29.2%. Computer import from Taiwan was recorded at $4.98 billion, up 35.5%; from Japan with $2.89 billion, up 39.8%.

From the beginning of the year to the end of June 15, the total import turnover reached $169.58 billion, an increase of 16.3% (equivalent to an increase of $23 0.8 billion) from last year.

In addition to computers, and electronic products, commodity groups with high turnover such as petroleum increased by $2.53 billion, an increase of 128.4%. Coal of all kinds increased by $2.19 billion, equivalent to 135.7% growth.

Source: https://e.nhipcaudautu.vn/economy/vietnam-spends-40bln-importing-computers-electronic-components-since-early-2022-3346496/

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Yeah1 to buy TV firm amid restructuring

Online entertainment company Yeah1 plans to buy a 51 percent stake in TV and radio company STV amid a major restructuring endeavor.

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The deal is set to be completed this quarter. STV, established in 2008, owns lifestyle TV channel StyleTV, stock and finance channel InfoTV and radio channel Joy FM.

The deal was announced after Yeah1 founder and chairman Nguyen Anh Nhuong Tong sold his entire 12.89 percent stake on June 1 after 15 years of leading the company from an online news website to the first media company to be listed on the Ho Chi Minh Stock Exchange.

Several other major shareholders have also been pulling out since February, including DFJ VinaCapital Venture Investment.

Yeah1 has postponed its annual general meeting twice this year saying more time was needed to prepare important documents.

It reported post-tax profits of nearly VND28 billion last year after two years of losses.

Its contract with YouTube was terminated in March 2020 due to a violation of policies, and what began as an operational error has “turned into a real crisis for the company,” Tong once said.

Yeah1 targets revenues of VND588 billion this year, down 45 percent from 2021 and the lowest since 2017.

It plans to issue 78.6 million new shares to increase its capital.

Source: VnExpress

Source: https://e.nhipcaudautu.vn/companies/yeah1-to-buy-tv-firm-amid-restructuring-3346497/

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