Vietnam: Controversy Surrounds Petrolimex Fuel Distribution Profitability
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Monday, 28 November 2011 |
Vietnam’s Ministers for Finance and for Industry and Trade have fuelled confusion about the profitability of the Vietnam National Petroleum Corporation, Petrolimex. Speaking at a question and answer session in the National Assembly, Minister of Finance Vuong Dinh Hue (pictured) said that Petrolimex – which holds a market share of over 60% - had operating profits between 2008 and 2010. However, his assertion was subsequently undermined by Minister of Industry and Trade Vu Huy Hoang, who told lawmakers that the company suffered losses from its oil and gasoline trading.
The confusion follows pressure from lawmakers to clarify the financial situation of Petrolimex, which posted profits at the time of its initial public offering last June after repeated losses. Nguyen Thu Anh of Lam Dong Province demanded that the Ministry of Finance publish the audit results on several fuel distributors to ascertain whether the industry was on a sustainable financial footing. Hue, who insisted that any losses in the fuel sector arose from currency fluctuation and distributors not strictly following trading regulations, said the ministry would publish audit results on the profits and losses of fuel wholesalers once that audit was completed.
PetrolWorld 28112011
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