PV Oil Lube JSC’s profit after tax jumped by more than 70% for the first six months of this year, likely benefiting from acceleration in Vietnam’s economic recovery that the World Bank attributed to rebounds in manufacturing and services.
The company, which is based in Ho Chi Minh City, Vietnam, reported that profit increased 73% to 402.6 million dong (U.S. $17,000) for the first half of this year, compared to ₫233.3 million in the same period last year. Net profit from business activities fell 27% to ₫286.7 million, compared to ₫391.7 million. Net sales revenue increased 19% to ₫212 billion, improving from ₫178 billion.
“Vietnam’s economic recovery accelerated over the last six months on the back of resilient manufacturing and a robust rebound in services,” the World Bank said in a press release on Aug. 8. The country’s economy expanded 5% during the first quarter and almost 8% in the second quarter this year, as consumers satisfied pent-up demand and foreign tourist arrivals picked up, according to the international financial institution’s bi-annual economic outlook for Vietnam.
World Bank cautioned that the country’s positive economic outlook is subjected to heightened risks that threaten recovery prospects. “Risks include growth slowdown or stagnation in main export markets, further commodity price shocks, continued disruption of global supply chains, or the emergence of new COVID-19 variants,” the bank noted. “Domestic challenges include continued labor shortages, the risk of higher inflation, and heightened financial sector risks.”
PV Oil Lube’s results marked a sharp rebound from full year 2021, when the company’s profit after tax fell more than 20%. The company attributed that profit drop to the impact of COVID-19 on the country’s entire economy, which also affected PVO Oil Lube’s production and business. Transportation costs and raw material prices underwent significant increases during 2021, but the company said it couldn’t pass on those hikes due to market competition.
PV Oil Lube manufactures and trades lubricating grease products and specialized lubricants, including engine, hydraulic and transmission oils. It also makes equipment that serve the fields of industrial and civil lubricants. The company also performs consulting, providing lubrication solutions and technical services.
PV Oil Lube is a public joint stock company, and Vietnam Oil Corp. is the shareholder that holds controlling shares.