Vietnam’s PV Oil Lube JSC reported a steep drop of more than 80% in profit after tax for 2021, compared to the prior year, although net sales grew by more than 50%. The company attributed the profit drop to COVID-19’s impacts on the country’s economy.
PV Oil Lube’s profit after tax plunged 84% to 238.8 million dong (U.S. $10,500), compared to ₫1.5 billion in 2020, according to the company’s financial statement.
In a separate filing the company said the large profit drop was due to the impact of COVID-19 on Vietnam’s entire economy, which also affected PV Oil Lube’s production and business. During a break due to pandemic-related social distancing requirements, the company noted it still had to pay recurring expenses. Transportation costs and raw material prices underwent significant hikes, but the company said it couldn’t pass on those increases due to market competition. The company also noted that it had tried to reduce costs in 2021.
Net profit from business activities dropped 79% to ₫351.1 million, compared to ₫1.7 billion.
Net sales revenue grew 54% to ₫331.5 billion, improving from ₫214.8 billion.
According to its website, PV Oil Lube produces and trades lubricating grease products and specialized lubricants, including engine, hydraulic and transmission oils. It also produces equipment serving the fields of industrial and civil lubricants. The company also does consulting, providing lubrication solutions and technical services.
PV Oil Lube is a public joint stock company, in which Vietnam Oil Corp. is the shareholder holding controlling shares.