MINISTRY OF EDUCATION AND TRAINING

CAN THO UNIVERSITY

SCHOOL OF ECONOMIC

ANALYSIS OF CONSOLIDATED FINANCIAL

STATEMENTS IN 2023
OF PETROLIMEX

Instructor: Pham Phat Tien

Students perform: Tran Thi Yen Nhi B2206994

Nguyen Hong Anh Thu B2206338

Phan Canh Thao Vy B2206353

Nguyen Ngoc Thuy Tien B2206343

…., month … year ….

 INDEX
I. Introduction
A. Over
view about Vietnam National Petroleum Group Petrolimex 4
B. Reas
on to choosing the company 4
C. Targ
et of Reports 4
II. Business Environment Analysis
A. Indu
stry Overview 4
B. Main
Competitors 4
C. Posit
ion of the Company in the Industry 5
III. Balance Sheet
1. Gene
ral analysis of financial scale 5
2. Gene
ral analysis of balance sheet structure 9
3. Over
view of business results table scale 12
IV. Analyze corporate finance ratios for investors
1. Liqui
dity ratio 16
2. Gear
ing ratio 16
3. Asse
t performance 16
4. Earni
ng power 16
5. Shar
e price 16
2
6. Inves
tment Outlook for New Investors 17

APPENDIX
Balance sheet of assets 5
Figure 1. Chart showing the growth trend of assets 6
Balance sheet of capital 7
Figure 2. Chart shows the growth trend of the capital resources 8
Table of the asset structure by proportion 9
Figure 3. Chart showing the proportion of assets 10
Table of capital structure by proportion 11
Figure 4. Chart showing the proportion of capital 11
Business result table scale 12
Table of financial ratio 15

3
Stock code: PLX
I. Introduction

A. Overview about Vietnam National Petroleum Group (Petrolimex)

The Vietnam National Petroleum Group, established from the process of equitization
and restructuring of the Vietnam Petroleum Corporation, operates in the field of
petroleum business, oil refining and petrochemicals, and capital investment in
enterprises. With a dominant role in the domestic market, Petrolimex ensures timely
supply of petroleum products for socio-economic development and national security.
Petrolimex's retail system includes approximately 4,790 stores nationwide, accounting
for 50% of the market share. Petrolimex provides other products such as lubricants,
gas, insurance, and always focuses on applying modern technology to enhance
productivity and service quality.

B. Reason to choosing the company

Petrolimex is the leading enterprise in the oil and gas sector in Vietnam, accounting
for about 50% of the domestic market share. Analyzing this group helps to understand
the trends and growth potential of the industry. With transparent financial reports,
Petrolimex provides a solid foundation for financial analysis and forecasting.
Moreover, the significant fluctuations in oil prices make the financial situation of
Petrolimex important for analysis.
C. Target of Reports
To evaluate key indicators such as profitability. liquidity and provide a comprehensive
view of the financial situation, guiding investor decisions.

4
II. Business Environment Analysis

A. Industry Overview
The petroleum sector is one of the strategic economic industries vital for energy
supply. Vietnam's current petroleum market is impacted by various factors, including
high inflation, rising interest rates, slow economic growth, geopolitical instability, and
armed conflicts. Investment and trade trends have shifted significantly to adapt to
these conditions. Additionally, sustainable growth and a shift toward green, clean
energy have become increasingly evident and irreversible trends.

B. Main Competitors
Petrolimex’s competitor, PetroVietnam Oil Corporation (PV Oil), holds the second-
largest share in the domestic petroleum market with a 19% market share, reaching an
annual volume of about 3 million tons. The company's distribution network includes
600 owned retail outlets and over 3,000 agency-operated stations. Additionally, PV Oil
operates 125 stores in Laos, where it is the second-largest fuel distributor with an
approximately 15% market share.

C. Position of the Company in the Industry

Petrolimex holds approximately 50% of the domestic petroleum market share in
Vietnam, with an extensive distribution network and a developed retail system. The
company's sales volume has maintained stable growth of over 5% annually for the past
five years. As a pioneer in supplying high-standard clean fuel, Petrolimex actively
invests in technology and improves production processes to enhance operational
efficiency and reduce costs.
III. Balance Sheet
1. General analysis of financial scale
A. Assets

31/12/2023 Relative
Line item 1/1/2023 Absolute difference
difference

A.Current 57.306.926.231.393 50.170.189.581.865 7.136.736.649.528 14%

assets

Cash and 14.048.245.083.619 11.606.028.926.698 2.442.216.156.921 21%

Cash
equivalents

Short-term 16.495.622.447.477 7.097.643.300.290 9.397.979.147.187 132%

financial
investments

5
Short-term 10.975.342.199.058 12.673.687.965.547 (1.698.345.766.489) -13%
receivables

Inventory 14.639.913.875.637 17.232.373.206.446 (2.592.459.330.809) -15%

Other 1.147.802.625.602 1.560.456.182.884 (412.653.557.282) -26%

current
assets

B. Non- 22.368.692.867.937 24.305.425.904.368 (1.936.733.036.431) -8%

current
Assets

Long-term 28.936.190.703 30.204.944.719 (1.268.754.016) -4%

receivables

Fixed assets 13.654.716.254.540 14.283.783.321.257 (629.067.066.717) -4%

Investment 115.855.426.374 120.950.457.534 (5.095.031.160) -4%

property

Long-term 919.552.879.504 557.087.688.928 362.465.190.576 65%

unfinished
assets

Long-term 4.812.246.891.099 6.498.899.053.765 (1.686.652.162.666) -26%

financial
investment

Other long- 2.837.385.225.717 2.814.500.438.165 22.884.787.552 1%

term assets

Total 79.675.619.099.330 74.475.615.486.233 5.200.003.613.097 7%

Assets

6
 Figure 1. Chart showing the growth trend of assets of Petrolimex Group from
1/1/2023-31/12/2023

According to the asset analysis of the Petrolimex Group, the total asset value as of
January 1, 2023, was VND 74.475.615.486.233, which increased to VND
79.675.619.099.330 by December 31, 2023, reflecting a growth of VND
5.200.003.613.097 or 7% compared to the beginning of the period.

Short-term assets grew moderately by 14%, rising by VND 7.136.736.649.528 from

VND 50.170.189.581.865 to VND 57,306,926,231,393.

Long-term assets decreased slightly by 8%, down by VND 1.936.733.036.431 from

VND 24.305.425.904.368 to VND 22.368.692.867.937 VND. Petrolimex expanded its
asset base in 2023, primarily focusing on short-term assets to improve liquidity, while
the reduction in long-term assets suggests a restructuring of long-term investments.

B. Source of Capital

Line item 31/12/2023 1/1/2023 Absolute difference Relative

difference
A. 50.473.511.920.499 46.693.004.842.014 3.780.507.078.485 8%
Liabilities
I. Short- 49.660.611.907.033 45.694.575.928.857 3.966.035.978.176 9%

7
term
liabilities
II. Long- 812.900.013.466 998.428.913.157 (185.528.899.691) -19%
term
liabilities
B. 29.202.107.178.831 27.782.610.644.219 1.419.496.534.612 5%
Owner’s
Equity
Total 79.675.619.099.330 74.475.615.486.233 5.200.003.613.097 7%
Capital

Figure 2. Chart shows the growth trend of the capital resources of Petrolimex Group
from 1/1/2023-31/12/2023.

The analysis shows that total capital at the beginning of the period was VND
74.475.615.486.233, which increased to VND 79.675.619.099.330 by December 31,
2023, reflecting an increase of VND 5.200.003.613.097, or 7%.

Equity rose from VND 27.782.610.644.219 to VND 29.202.107.178.831, a growth of

VND 1.419.496.534.612 or 5%, indicating positive development in the company’s
internal financial resources.

8
 Liabilities increased from VND 46.693.004.842.014 to VND 50.473.511.920.499, an
increase of VND 3.780.507.078.485, or 8%.

Petrolimex experienced positive growth in 2023, expanding its capital base and
strengthening equity, with asset growth at 7% and equity growth at 5%. However, as
shown in Figure 2, liabilities exceeded equity, which supports business financing but
raises financial risk if operational cash flow faces challenges. A balanced approach to
managing debt and equity will help PLX improve its financial strength and ensure
sustainable growth over the long term.

2. General analysis of the structure of the balance sheet

A. Assets

Line item 31/12/2023 Proportion 1/1/2023 Proportion

A.Current 57.306.926.231.393 71,93% 50.170.189.581.865 67,36%

assets

Cash and 14.048.245.083.619 17,63% 11.606.028.926.698 15,58%

Cash
equivalents

Short-term 16.495.622.447.477 20,70% 7.097.643.300.290 9,53%

financial
investments

Short–term 10.975.342.199.058 13,78% 12.673.687.965.547 17,02%

receivables

Inventory 14.639.913.875.637 18,37% 17.232.373.206.446 23,14%

Other current 1.147.802.625.602 1,44% 1.560.456.182.884 2,10%

assets

B. Non- 22.368.692.867.937 28,07% 24.305.425.904.368 32,64%

9
current
Assets

Long-term 28.936.190.703 0,04% 30.204.944.719 0,04%

receivables

Fixed assets 13.654.716.254.540 17,14% 14.283.783.321.257 19,18%

Investment 115.855.426.374 0,15% 120.950.457.534 0,16%

property

Long-term 919.552.879.504 1,15% 557.087.688.928 0,75%

unfinished
assets

Long-term 4.812.246.891.099 6,04% 6.498.899.053.765 8,73%

financial
investment

Other long- 2.837.385.225.717 3,56% 2.814.500.438.165 3,78%

term assets

Total Assets 79.675.619.099.330 100% 74.475.615.486.233 100%

10
 Figure 3. Chart showing the proportion of assets on January 1, 2023 and December
31, 2023.

Regarding Current Assets: As of December 31, 2023, current assets accounted for
71.93% of total assets, representing a significant portion. The majority of this came
from short-term financial investments, which accounted for 20.7%, largely due to
increased investments in held-to-maturity securities. Cash and cash equivalents made
up 17.63%, partly due to divestment from PGBank. Inventory accounts for up to
18.37% of total assets but is lower than at the beginning of the period due to the
continuous decline in global oil prices in the last months of 2023, as well as the
reduction in import costs for oil. This decrease is attributed to the cooling off of global
oil prices and transportation costs. As a result, Petrolimex has been able to lower its
capital cost, thereby reducing the need to maintain high inventory levels, leading to a
decrease in inventory compared to the beginning of 2023. Notably, in 2023, the
company aggressively managed accounts receivable, resulting in customer receivables
making up 13.78% as of December 31, 2023, a decrease from January 1, 2023.

Regarding Long-Term Assets: As of December 31, 2023, long-term assets accounted

for 28.07%, with long-term financial investments comprising 6.04%. This figure
declined by VND 1,686,652,162,666 due to the company’s divestment from PGBank.
Ongoing long-term assets increased, representing 1.15% as of December 31, 2023, due
to substantial investment in infrastructure projects, especially the Vân Phong
Petroleum Bonded Warehouse project in Khanh Hoa, which focuses on the storage and
trading of petroleum at the border.

Results from this chart and analysis indicate that PLX’s asset structure underwent
significant changes in 2023, reflecting an increase in current assets aimed at enhancing
liquidity while also reducing inventory risks amid volatile oil prices.

B. Source of Capital

Line item 31/12/2023 Proportion 1/1/2023 Proportion

A. Liabilities 50.473.511.920.499 63,35% 46.693.004.842.014 62,7%
I. Short-term 49.660.611.907.033 62,33% 45.694.575.928.857 61,36%
liabilities
II. Long-term 812.900.013.466 1,02% 998.428.913.157 1,34%
liabilities
B. Owner’s 29.202.107.178.831 36,65% 27.782.610.644.219 37,3%
Equity
Total Capital 79.675.619.099.330 100% 74.475.615.486.233 100%

11
 Figure 4. Chart showing the proportion of capital on January 1, 2023 and December
31, 2023.

Overall, the capital structure remained relatively stable without major fluctuations.

Liabilities:As of December 31, 2023, total liabilities accounted for 63.35% of total
capital. This is due to the increase in short-term loans by Petrolimex, which made up
62.33% of total liabilities, aimed at supplementing working capital and meeting fuel
import demands. Specifically, these short-term loans were obtained in the form of
unsecured loans to open letters of credit (L/C) for imports. Long-term debt represented
only 1.02% of total capital, indicating a minimal share.

Equity: Equity accounted for 36.65% of total capital.

From the analysis, we can see that liabilities exceed equity, with Petrolimex's debt-to-
equity ratio (D/E) standing at 1.73 times by the end of 2023. This level is still within a
safe range, as the maximum allowable limit is 3 times. The high proportion of short-
term debt reflects a focus on working capital and import financing, while the low level
of long-term debt suggests that Petrolimex emphasizes short-term financial needs.

3. Overview of business results table scale

Line 31/12/2023 1/1/2023 Absolute Difference Relative

item Difference

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Revenue 274.082.359.042.928 304.171.606.608.893 (30.089.247.565.965) -9,89%
from
sales and
services

Sales 103.183.069.449 107.795.182.449 (4.612.113.000) -4,28%

deductio
ns

Net 273.979.175.973.479 304.063.811.426.444 (30.084.635.452.965) -9,89%

revenue
from
sales and
services

Cost of 258.715.274.315.672 291.744.174.805.179 (33.028.900.489.507) -11,3%

goods
sold and
services
provided

Gross 15.263.901.657.807 12.319.636.621.265 2.944.265.036.542 23.9%

profit

Net profit 3.817.970.501.791 1.942.217.776.454 1.875.752.725.337 96,58%

from
business
activities

Results 129.419.743.813 327.909.619.824 (198.489.876.011) -60,5%

from
other
activities

13
Profit 3.947.390.245.604 2.270.127.396.278 1.677.262.849.326 73,88%
before
tax

Current 804.270.679.753 435.867.990.491 368.402.689.262 84,52%

corporate
income
tax
expense

Deferred 65.799.622.451 67.973.931.964 (2.174.309.513) -3,2%

corporate
income
tax
expense

Profit 3.077.319.943.400 1.902.233.337.751 1.175.086.605.649 61,77%

after
corporate
income
tax

Revenue for 2023 decreased by 9,89% compared to 2022, reflecting challenges from
external factors.

Cost of Goods Sold (COGS) and Service Provision: In 2023, COGS decreased by
11,3% compared to 2022. Petrolimex managed COGS effectively during periods of oil
price fluctuations, significantly reducing COGS relative to revenue, resulting in a
23,9% increase in gross profit. This increase reflects enhanced business efficiency
despite the drop in revenue.

Net Profit from Business Operations: In 2023, net profit from core operations rose
by VND 1.875.752.725.337, equivalent to an increase of 96,58% compared to 2022,
indicating effective core business operations with better cost control, even though net
revenue decreased due to fuel price fluctuations.

Other Activities: Results from other activities in 2023 fell by VND 198.489.876.011,
equivalent to a 60,5% decrease compared to 2022, as Petrolimex engaged in less asset
liquidation this year, resulting in lower other income.
14
Current Corporate Income Tax Expense increased by 368,402,689,262 VND,
corresponding to a sharp rise of 84.52%, due to a significant increase in business
profits. Post-tax profit

Net Profit after Tax: in 2023 grew by 61% compared to 2022. The profit earned from
the successful divestment of PGBANK further strengthened the financial position of
the Group and allowed it to focus on its core business operations.

In 2023, the oil industry faced significant challenges due to unusual fluctuations in
global oil prices. However, it is noteworthy that the decline in costs outpaced the drop
in revenue, allowing Petrolimex to enhance its gross profit margin. Furthermore, the
financial gains from divesting from PGBank also contributed to a more optimistic
business outlook for Petrolimex in 2023.

IV. Analyze corporate finance ratios for investors

Businesses PLX OIL

Financial ratio 2022 2023 2023
Current ratio 1,1 1,15 1,21
Quick ratio 0,72 0,86 1,06
Cash ratio 0,25 0,28 0,2
Interest coverage ratio 4,52 5,39 4,06
Debt-to-Equity ratio 1,68 1,73 2,4
Debt-to-Total Assets ratio 62,7 63,35 70,67
(%)
Total assets turnover ratio 4,08 3,55 3,04
Inventory turnover ratio 19,2 16,23 27,78
Inventory turnover days 19,01 22,49 13,14
Gross profit margin (%) 4,05 5,57 3,75
ROA (Return on Assets) (%) 2,47 3,99 1,8
ROE (Return on Equity) (%) 6,68 10,8 5,5
P/E (Price/Earning) 27,78 15,47 18,38

15
 P/B (Price/Book value) 1,45 1,5 0,91

1. Liquidity ratio:

PLX has successfully maintained a secure liquidity level.The current ratio increased
from 1.1 to 1.15, indicating a minor uptick in short-term liquidity. The quick ratio
rose from 0.72 to 0.86, signaling that PLX has improved its ability to meet immediate
obligations without depending on inventory. The cash ratio saw a slight
improvement, moving from 0.25 to 0.28. The interest coverage ratio rose from 4.52
to 5.39, showcasing PLX's superior capacity to meet interest payments compared to
OIL's 4.06.

2. Gearing ratio:

PLX uses a relatively high financial leverage, with a debt/equity (D/E) ratio of 1.73,
a slight increase compared to last year. This indicates that the company relies heavily
on borrowed capital to finance its operations but remains stable, with a reasonable
leverage level compared to other companies in the industry and a significantly
improved ability to pay interest (5.39 times), helping to minimize risks from leverage
usage. The debt-to-total-assets ratio remains at 63%, reasonable for the energy
sector. Currently, the company has no bad debts.

3. Asset performance

Asset utilization efficiency has slightly decreased, with a total asset turnover of 3.5
times, possibly due to complex fluctuations in world oil prices; however, compared to
companies in the same industry, this figure remains competitive. Inventory turnover
decreased from 19.2 (2022) to 16.23 (2023), and Inventory turnover days increased
from 19.01 to 22.48 days. Unstable oil prices have led to reduced consumption
demand, resulting in slower sales and thus an increase in inventory holding time.

4. Earning power:

PLX has significantly improved its profitability in 2023:

ROA increased from 2.47% to 3.99%, indicating that the company uses assets more
effectively to generate profits (the increase in financial profits from the divestment of
PGBANK has led to a higher post-tax profit margin (ROS), resulting in a ROA
substantially higher than in 2022.)

ROE rose sharply from 6.68% to 10.8%, reflecting significantly improved profitability
from shareholder equity. This is a positive signal for investors, indicating that the
company is creating high value from owned capital.

5. Share price:

16
- The P/E ratio decreased from 27.78 to 15.47, indicating that PLX shares are being
valued more reasonably and becoming more attractive to new investors. This P/E level
also aligns with the oil and gas industry, where the P/E ratio typically ranges from
13.07 (Vietnam National Gas Corporation (GAS, PV Gas) to 18.38 times (Vietnam Oil
Corporation (PVOIL).

- The P/B ratio increased from 1.45 to 1.5 times. This means that investors are
willing to pay a premium over asset value, possibly due to their belief in the company's
potential for profitability or growth in the future. Compared to industry standards, this
P/B reflects market confidence in Petrolimex but not to the extent of indicating
overvaluation.

Conclusion

Strengths: Improved liquidity ratios, better interest payment capabilities, and

enhanced profitability ratios (ROA, ROE). The decrease in P/E indicates that the stock
may be at an attractive level.

Risks: Declining asset performance, slowing inventory turnover, which could reduce
efficiency and increase the significant risk pressure from inventory and reliance on oil
prices. To cope with and minimize risks, PLX has actively implemented various
measures.

In 2023, despite facing numerous economic difficulties, PLX has achieved

commendable business results by applying various synchronized and flexible
solutions. PLX has shown positive improvements, indicating that the company is
increasingly using assets efficiently to generate profits. The company is making
positive strides in financial management and optimizing operational efficiency.

6. Investment Outlook for New Investors:

- Short-term (2024): Petrolimex will face fewer competitors in the future due to the
requirement for fuel businesses to issue electronic invoices, which will eliminate
illegal fuel sellers. The business results also look promising, with a slight increase in
consumption demand, allowing PLX to continue stabilizing its revenue.
+Recommendation: Investors may consider short-term investments.

- Medium-term (2025-2027): Oil prices may decrease, along with increased

competition in the industry and fluctuating demand, which could pressure PLX’s
profits.
+Recommendation: If PLX can optimize operations and reduce costs, medium-term
investors may continue to hold shares but should monitor fluctuations due to armed
conflicts and supply-demand dynamics.

- Long-term (>2027): The trend may shift towards clean energy, reducing dependence
on oil and gas. PLX is planning to increase the proportion of green products, which

17
will be key to maintaining the company's competitive advantage.
+Recommendation: If PLX successfully transitions to clean energy, this could
present a promising long-term investment opportunity.

This is a potential investment option for new investors, as oil demand in 2024 is
expected to grow well, and oil prices are likely to stabilize. PLX is considered a safe
investment choice with growth potential for 2024.

End

List of References
1.https://files.petrolimex.com.vn/files/6783dc1271ff449e95b74a9520964169/
application=pdf/e505191fda1947a081bf56344a0e38c2/BCTN_2023_final.pdf.

2.https://finance.vietstock.vn/PLX/tai-chinh.htm?tab=CSTC

3.https://www.eia.gov/todayinenergy/detail.php?id=56560

4.https://www.eia.gov/todayinenergy/detail.php?id=57160

5.https://longforecast.com/oil-price-today-forecast-2017-2018-2019-2020-2021-brent-
ưti.

6.https://thuvienphapluat.vn/chinh-sach-phap-luat-moi/vn/ho-tro-phap-luat/chinh-sach-
moi/56983/cuc-thue-tphcm-huong-dan-xuat-hoa-don-dien-tu-tung-lan-ban-xang-dau

7.https://www.erav.vn/tin-tuc/t57267/thu-truong-nguyen-hoang-long-chuyen-doi-
xanh-la-xu-the-cua-cac-tap-doan-nang-luong.html

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