Petrolimex targets 2020 pretax profit to fall 72% on global instabilities

In 2020, the petroleum retailer plans to cut petroleum output by 17% to nearly 11.5 million cu.m, according to documents prepared for shareholders’ meeting.

The earning target was built on the scenario of crude oil price at $42 per barrel.

The group noted that in the first months of the year, prices of crude oil and petroleum products fell sharply due to the Covid-19 pandemic and an oversupply of oil supply, trade war.

Petrolimex is seeking shareholders’s approval to pay 2019 dividend at 30% while 2020 dividend at 12%.

In 2019, Petrolimex achieved good business result. Its sale output reached nearly 13.9 million cu.m, exceeding the whole-year goal by 14%, bringing a consolidated pretax profit of VND5,648 billion ($243 million), beating target by 8%.

In addition, Petrolimex plans to reduce the State holding in the group to 51% and reduce stake in Pjico to 35.1%.