Petrolimex (PLX) Posts Worst Quarterly Loss in 6 Years on Fuel Price Volatility

Overview

Petrolimex (PLX), Vietnam’s largest petroleum retailer, reported a consolidated loss of VND 662 billion in Q1/2024, its deepest quarterly loss since Q1/2020. The loss was driven by a VND 930 billion deficit in its core petroleum business, caused by abnormal global fuel price volatility and inventory write-downs. Revenue surged 50% year-on-year to a 13-year quarterly high of VND 98.7 trillion, but cost pressures overwhelmed top-line growth.

Key Facts

• Consolidated loss of VND 662 billion in Q1/2024, the worst quarterly loss in six years.
• Core petroleum business posted a loss of VND 930 billion in the quarter.
• Revenue reached VND 98.7 trillion, up 50% year-on-year and the highest quarterly revenue in 13 years.
• Inventory at end-Q1 stood at VND 36.3 trillion, up from VND 14 trillion at the start of the year.
• The company booked inventory write-downs as global fuel prices reversed sharply in April.
• Petrolimex maintained inventory of nearly 1 million cubic meters, 1.3 times the regulatory requirement.
• Spot freight premiums surged to USD 35-40/barrel for diesel and USD 12-15/barrel for gasoline, versus normal levels of USD 2.5-3.

What Happened

Petrolimex attributed the loss to “abnormal and unprecedented” global fuel price movements following the escalation of the Middle East conflict in late February. In March, the average price of RON 95 gasoline reached USD 137/barrel, 170% higher than the same period last year, and briefly spiked to USD 170/barrel. Diesel prices averaged USD 192/barrel and peaked at USD 292/barrel.

As smaller importers struggled to secure supply due to high prices and scarce availability, demand shifted to major players like Petrolimex. The company was forced to increase imports at spot prices with elevated premiums to ensure domestic supply. By early April, prices reversed sharply, with RON 95 falling USD 46/barrel from its peak and diesel dropping USD 140/barrel, triggering significant inventory write-downs. Chief Accountant Pham Van Quang explained in a filing to HOSE that the price reversal was a “material factor” affecting business performance.

Market Context

PLX shares closed at VND 40,000 on April 15, 2026, down 0.50% on volume of 2.68 million shares. The stock has been under pressure as the market digests the magnitude of the Q1 loss. Petrolimex is listed on HOSE and is a bellwether for the energy sector. The broader VN-Index has been volatile amid global macro uncertainty, but PLX’s loss is company-specific, tied to its role as the dominant fuel retailer and its exposure to inventory risk.

Strategic Significance

The Q1 loss highlights the structural vulnerability of Petrolimex’s business model to global fuel price swings, despite its dominant market position. The company’s obligation to maintain strategic reserves and ensure domestic supply forces it to absorb price shocks that smaller competitors can avoid. While the loss is likely transitory, it underscores the need for better hedging or inventory management. Petrolimex’s non-fuel segments remained stable and grew 15% year-on-year, providing a partial buffer. Long-term investors should assess whether management can mitigate such risks through operational improvements or policy support.

What to Watch

• Q2 2024 earnings release for signs of recovery in the petroleum segment.
• Global fuel price trends, particularly Brent crude and refined product spreads.
• Any changes in Vietnam’s fuel pricing mechanism or strategic reserve policies.
• Petrolimex’s inventory levels and write-down reversals in subsequent quarters.
• Management commentary on hedging strategies or risk management improvements.