On May 02, 2018, Luu Van Tuyen, as authorised by the Vietnam National Petroleum Group (Petrolimex/Group) to disclose information, submitted to the State Securities Commission of Vietnam the Parent Company’s Q1 financial statement and the Group’s consolidated financial statement.

Financial statements were completed in accordance with Vietnamese Accounting Standards, Vietnamese Enterprise Accounting System stipulated in the Ministry of Finance’s Circular 200-202/2014/TT-BTC dated December 22, 2014 and common accounting principles approved in Vietnam.

On the same day the statements were made public on the website www.petrolimex.com.vn, at sections “Investors” and “Petroleum Transparency”.

Accordingly, Petrolimex’s business performance in the first quarter of 2018 is shown as follows:

1/ Consolidated net revenue (of Petrolimex affiliates in all business areas: petroleum, gas, lubricant, petroleum transportation, engineering, mechanics, etc.) was: VND45,430 billion (US$2 billion), up 27% over the same period last year. The increased revenue results from the average price of WTI crude oil in the first quarter of 2018 being $62.89 per barrel, a year-on-year rise of 21.5% (the average price of WTI crude oil in the quarter of 2017 was $51.78 per barrel).

2/ Consolidated profit before tax was VND1,206 billion ($53 million), which reaches 24% of the set target and equates to 89% of the same period last year.

In which:

(a) Petroleum: profit before tax from the Group’s petroleum business was VND611 billion ($27 million), equivalent to 50.6% of the total consolidated profit. Up to 3,287,806cu.m/tonne of petroleum was sold in the first quarter of 2018, an increase of 17.6% over the same period last year (2,796,074cu.m/tonne), (the physical unit of tonne is used to measure mazut).

(b) Non-petroleum business activities, total profit before tax reached VND595 billion ($26 million), equal to 49.4% of the total consolidated profit. Specifically:

- Gross earnings of petrochemical, bitumen, and chemicals were VND188 billion ($8.3 million);

- Gross earnings of gas trading reached VND45 billion ($2 million);

- Gross earnings of ocean transport, inland waterway transport, and inland transport amounted to VND93 billion ($4.1 million);

- Gross earnings of aviation fuel reached VND116 billion ($5.1 million);

- Gross earnings of insurance and banking were VND 41 billion ($1.8 million);

- Gross earnings of warehouse business reached VND30 billion ($1.3 million);

- Gross earnings from two companies based overseas reached VND12 billion ($527,000);

- Gross earnings of other fields including: construction and installation, mechanics, petroleum infrastructure, informatics, import and export, services and others were VND70 billion ($3 million).

(c) Contribution to the State budget in the first quarter of 2018 was VND10,736 billion ($471 million), a year-on-year increase of 17.7% (contribution to the State budget in Q1 2017 was VND9,122 billion or $400 million).

(d) Total consolidated profit after tax in the first quarter of 2018 was VND1,003 billion ($44 million), of which profit after tax of the Parent Company - Group’s shareholders was VND898 billion ($39 million).

(e) The ratio of after-tax profit on charter capital is 6.9%.

3/ Works to be implemented in second quarter of 2018.

- Continue trading high quality products, protect the environment and develop general solutions to mobilise all forces to increase the sales of target commodities including E5-RON92 petrol, diesel level V (DO-V) and 95 IV petrol.

- Study and build up commercial names for high quality products to differentiate them from ordinary ones. Develop programmes to advertise and promote high quality products nationwide.

- Enhance management and governance: continue to hire KPMG to provide advisory services in risk management, financial management, organisational model, information system, among others; Continue using e-invoices and issuing sales receipts at fuel dispensers, etc.

- Increased investment to fortify the network of petrol stations.

- Continued acceleration of restructuring the Group in accordance with the Prime Minister Decision No 828/QD-TTg dated May 31, 2011, mostly focusing on divestment in the banking sector.