Petrolimex reports US$126.2 million loss in Q1

Vietnam National Petroleum Corp. (Petrolimex) is reporting a loss of US$126.2 million in the first quarter, due to the volatility of the U.S. Dollar exchange rate. Dam Thu Huyen, deputy general director of Petrolimex, said that the dong devaluation by the State Bank of Vietnam contributed to the loss. She states, “Once the central bank adds or trims the daily interest rate by between VND5 and VND10, Petrolimex will lose between VND5 billion (US$242,954) and VND10 billion (US$485,908) every day.” Huyen said that the loss can also be attributed to the company’s attempt to ensure sufficient fuel supply for the domestic market. Huyen urged the central bank in Vietnam to make sure there is a sustainable supply of U.S. dollars for petrol trading. She also pointed out the need for the central bank to set loan exchange rates at reasonable levels. (April 5, 2011)