- PLX released robust Q3 2023 results with reported NPAT-MI of VND738bn (+646% YoY; -9% QoQ). We attribute the increase in reported NPAT-MI to be mainly driven by (1) higher operating profit due to stable petroleum prices in Q3 2023, compared to volatile prices in most of Q3 2022, (2) potentially strong sales volume, and (3) the surge in financial income from the PGB divestment gain. However, PLX also recorded an inventory provision of VND776bn in Q3 2023, reflecting the risk of oil prices declining in early October vs end of September. Without this provision, Q3 2023 NPAT-MI would have reached VND1.4tn (+13x YoY; 67% QoQ).

- PLX's revenue in Q3 2023 was VND72.4tn (-2% YoY; 10% QoQ). We attribute the decrease YoY and increase QoQ in revenue as mainly driven by the average Vietnamese E5 gasoline retail price of VND22,511/liter (-9% YoY; 5% QoQ) and average Vietnamese diesel retail price of VND21,196/liter (-14% YoY; 14% QoQ). Furthermore, the increase in regulated cost in July 2023 and potentially strong sales volume boosted the gross profit by 35% YoY. 

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