Petrolimex (PLX) Expects Q1 2026 Loss of VND 1,000B on Oil Price Volatility

Overview

Petrolimex (PLX) announced at its 2026 Annual General Meeting on April 24 that it expects a loss of VND 1,000 billion in Q1 2026 from its core petroleum business due to extreme oil price volatility. The company also proposed two measures to increase its free-float ratio to meet public company requirements under the Securities Law.

Key Facts

• Petrolimex (PLX) expects a Q1 2026 loss of VND 1,000 billion from petroleum operations.
• Oil prices fluctuated by USD 50-20 per day, with purchase prices reaching USD 292 per barrel plus surcharges and freight, totaling USD 300-340 per barrel.
• A 40,000-tonne crude shipment now costs USD 85-87 million, up from USD 25-26 million previously.
• State ownership in Petrolimex stands at 75.87%, strategic shareholders hold 13.08%, and retail investors hold only 9.41%.
• The free-float ratio of 9.41% is below the 10% minimum required for public companies.
• Petrolimex has one year to implement solutions to meet the free-float requirement.
• Proposed solutions: (1) sell treasury shares to increase free-float, and (2) divest state capital to reduce state ownership.

What Happened

At the annual general meeting on April 24, Petrolimex CEO Luu Van Tuyen disclosed that the company expects a VND 1,000 billion loss in Q1 2026 from its petroleum segment. He attributed the loss to extreme oil price volatility, noting that daily price swings of USD 50-20 are unprecedented. At one point, the purchase price of a barrel of oil reached USD 292, and with surcharges and freight, the total cost rose to USD 300-340 per barrel. A 40,000-tonne crude shipment that previously cost USD 25-26 million now costs USD 85-87 million.

Separately, board member Tran Tuan Linh addressed the company’s failure to meet public company free-float requirements. The current shareholder structure includes 75.87% state ownership, 13.08% strategic shareholders, and only 9.41% retail investors, below the 10% free-float threshold. Petrolimex has reported the issue to the State Securities Commission and has one year to implement corrective measures. The company is considering two solutions: selling treasury shares to increase free-float, or divesting state capital to reduce state ownership.

Market Context

PLX closed at VND 40,000 on April 15, down 0.50% on volume of 2.68 million shares. The stock trades on HOSE. The expected Q1 loss is a significant reversal from prior profitability, reflecting the impact of volatile global oil markets on Vietnam’s largest petroleum distributor. The free-float issue is a structural concern that could affect PLX’s eligibility for index inclusion and foreign investment.

Strategic Significance

The Q1 loss highlights Petrolimex’s vulnerability to oil price shocks despite its dominant market position and infrastructure advantages. The company’s ability to manage supply chain disruptions and maintain inventory at high levels is a key operational strength, but the financial impact of extreme price swings is unavoidable. The free-float issue, while common among former state-owned enterprises, may pressure the government to reduce its stake, potentially increasing liquidity and attracting foreign investors.

What to Watch

• Q1 2026 earnings release for actual loss figures and segment breakdown.
• Any announcement of treasury share sales or state divestment plans.
• Guidance from the State Securities Commission on free-float compliance.
• Oil price trends and their impact on Petrolimex’s Q2 2026 performance.
• Changes in foreign ownership limits and investor interest in PLX.