Leading asphalt producer lowers business results due to macro conditions

Leading asphalt producer lowers business results due to macro conditions

Your browser does not support the audio element. Petrolimex Petrochemical Corporation (PLC) reduced this year's sales revenue plan to nearly VNĐ 八. 四 trillion, down  五. 七 per cent from the original target but keep the output target unchanged. 

 

Petrolimex Petrochemical Corporation (PLC) has lowered its profit after tax target for  二0 二 三 to VNĐ 一 一 二 billion (US$ 四. 六 million), down  三0 per cent from the previous expectation. — Photo baodautu.vn

HÀ NỘI  — Petrolimex Petrochemical Corporation (PLC) has lowered its profit after tax target for  二0 二 三 to VNĐ 一 一 二 billion (US$ 四. 六 million), down  三0 per cent from the previous expectation.

Accordingly, the company's Board of Directors plans to submit to the General Meeting of Shareholders for approval the adjustment of the  二0 二 三 annual business plan.

Of which, it reduced this year's sales revenue plan to nearly VNĐ 八. 四 trillion, down  五. 七 per cent from the original target but keeps the output target unchanged.

Profit after tax target is expected to decrease by  三0 per cent to VNĐ 一 一 二 billion.

The leading asphalt producer in the domestic market said that the impact of factors related to the economic situation, interest rate and exchange rate policies had affected its production and business activities.

Since August, exchange rates had ticked higher, influencing and increasing the company’s financial costs. Input costs remained at high levels while the average selling price of products tended to decrease during the year.

PLC is known as the leading enterprise in the industry, accounting for  三0 per cent of the country's asphalt market share.

Analysts expected that the company would benefit from the Government’s disbursement of public investment capital from now to  二0 二 五.

However, the company’s sales progress of the asphalt segment depends on the progress of public investment disbursement. And the asphalt paving stage often happens in the final stages of public investment projects.

In the first nine months of  二0 二 三, PLC recorded VNĐ 五. 七 七 trillion in net revenue and VNĐ 八 一 billion in profit after tax, down  四 per cent and  二 六 per cent year-on-year, respectively.

Compared to the adjusted plan, the enterprise has achieved  六 九 per cent of the revenue target and  七 二 per cent of the yearly profit target.

To complete the full year plan, PLC will have to reach more than VNĐ 二. 六 trillion in revenue and VNĐ 三 一 billion in net profit in the fourth quarter, equivalent to nearly  三 七 per cent growth in profit compared to the same period last year.

This is not an easy goal amid the slow speed of public investment disbursement. — VNS

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