Business Performance

Annual Report 2022

2022

Report on the business performance

Despite facing many difficulties and challenges, the Parent Company and member units of the Group have made great efforts to actively respond to the outbreak of the pandemic, develop appropriate, drastic and flexible business solutions to end 2022 with outstanding production and business performance, meet and exceed the 2022 important targets.

304,064Billion
VND

Consolidated revenue for the year 2022

2,270Billion
VND

Consolidated profit before tax

13.856Million
m3/ton

Consolidated petroleum output

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Unit: Million m3/ton

Evaluation on business operation

2022 is considered to be an extremely difficult and challenging year for the Group and member units when it is negatively affected by many objective and force majeure factors, leading to results and overall efficiency not being as expected. However, with the correct orientation and management of the Board of Directors, the drastic management of the Board of General Directors and the determination, consensus and efforts of the entire system from the Parent Company of the Group to member units with many solutions implemented synchronously and flexibly, which have helped the Group to ensure its leading role in stabilizing the petroleum market, ensuring national energy security, especially in stressful times in terms of supply in 2022.

Outstanding results

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In the difficult context of 2022, the Group has fully completed the 2022 production and business plan. The effectiveness of corporations and specialized units in the nonpetroleum business continues to be affirmed as one of the two solid pillars for the Group’s profit of 2,333 billion VND. The plan for production, business and development investment for the period of 2021-2025, the scheme of restructuring the Group for the period of 2021- 2025, with a vision to 2035 have been passed and approved by the competent authorities.

Continuing to ensure security and safety implemented throughout the Group, contributing to ensuring the stability and efficiency in production and business of the whole Group.

The Group has well performed the key role of State-owned enterprises to strictly implement and take responsibility for the directions of the Government, the Prime Minister and the Inter-Ministries of Industry and Trade - Finance in ensuring resources for the distribution system.

Reviewing and reducing general administration expenses, business expenses and economic norms, while ensuring jobs and significantly improving incomes for employees, especially for employees at petroleum stations in difficult business conditions.

The Group has kick-off many important information technology, automation and digital transformation projects, helping to create a solid foundation towards the goal of comprehensive digital transformation in the near future, in which completing guidelines and orientations for the development petroleum station system according to new and modern standards, shortly meeting the utility, serviceability and improving customer experience, etc.

Member units focus on expanding and upgrading the station system, renovate and upgrade, repair the terminals, jetties and other assets for safe and effective production and business.

Results of main operating segments

Petroleum output

13.856Million
m3/ton

Domestic consumption reached

10,4Million
m3/ton

In-land Transportation

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Total sale volume

148,749
tons

Net revenue

4,104Billion
VND

Profit before tax

160,2Billion
VND

Total sale volume

941,905
m3

Profit before tax

449Billion
VND

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Improvements in organizational structure
management policies

01

Organizational structure, management - operation policies

In 2022, the Group has continuously strengthened application of information technology in management and operation activities: maximizing exploiting efficiency of information resource, making use of SAP-ERP, EGAS system to generate information and analyze data serving administration and management activities; implementing smart business intelligence reporting (BI) on the entire system, digitalizing order management system to control and monitor; strengthening online meetings, conferences and training programs, etc.

02

Risk management measures to improve operational efficiency

In early 2022, the Board of General Directors directed to conduct a review of the Group’s risk portfolio in order to identify, evaluate and focus on effective control of the Group’s significant risks. The internal control system is also regularly reviewed and thoroughly evaluated to ensure effective prevention and treatment of identified risks.

IT Applications

Petrolimex has achieved remarkable achievements in digitalization and IT application such as: enterprise resource management system ERP - SAP, electronic invoice system, non-cash payment, E-gas petroleum retail management system, e-office electronic document management system, deploying Microsoft Teams online meeting software, etc

Investment Activities

The Group has invested in new development projects to put into operation 47 petroleum stations, reaching 72% of the target, in renovating and upgrading 204 stations and in deploying new brand identity application at 307 petroleum stations. Besides, the Group has also invested in terminals, tanks, pipelines projects and completed 04 head offices projects at the Group's member units.

In 2023, the Board of General Directors pledges to continue focusing on retailing, the largest source of income to the business, taking leverage from brand advantage and a nationwide network. Therefore, the domestic petroleum segment in 2023 will focus on repairing and developing new petroleum stations. Besides, the Group also plans to invest in terminals, tanks, pipelines projects and head offices of the Group's member units.