- PLX released Q1 2023 results with revenue of VND67tn (USD2.9bn; +0.6% YoY) and NPAT-MI of VND620bn (USD26mn; +2.6x YoY). We attribute the nearly flat YoY revenue to 4% YoY domestic volume growth — which was higher-than-our expectation — and 3.9% YoY higher diesel price, offsetting 12.2% YoY lower gasoline prices (caused by 15% YoY decline in Brent oil price). NPAT-MI more than doubled vs Q1 2022, which was mainly due to 1) higher profit per liter 2) 4% YoY domestic volume growth and 3) a 6x YoY increase in net financial income. 

- We believe PLX experienced higher profit per liter as 1) the company no longer relied on petroleum imports at high prices as much as it did in 2022 when Nghi Son Refinery (NSR) had to reduce its utilization rates as a result of financial hardship, and 2) base price component adjustments in Q4 2022 supported PLX in covering its actual costs.