Hanoi (VNS/VNA) - Surging international crude oil price on improving demandhas helped many oil and gas companies record big profits in the first quarterof this year, after losing in 2020.

In the first quarter financial result, Vietnam National Petroleum Group(Petrolimex, PLX) posted a slight fall of 0.6 percent in net revenue to nearly 38.2trillion VND (1.6 million USD). However, it was still profitable thanks to acut in expenses in financial activities and others, and gains in otherincomes.  

Of which, the company's profit after tax was nearly 736.2 billion VND in thefirst quarter after reporting a loss of 2.3 trillion VND in the same periodlast year. 

During the period, Petrolimex's domestic output rose 4.7 percent year-on-yearto 2.27 million m3. Retail sales accounted for 55 - 60 percent of itstotal sales but contributed around 80 percent of its profit.

SSI Securities Corporation (SSI) said that the company's production growth willcontinue until the first half of the second quarter, boosted by theGovernment's restriction on illicit petrol, especially in the south. 

Similarly, Binh Son Refining and Petrochemical Company Limited (BSR) witnessedits revenue reach 21 trillion VND in the first quarter with a profit ofover 1.8 trillion VND, while it reported a loss of 2.33 trillion VND in thesame period last year.

The main driving force for the recovery in profit was higher crude prices inthe international market and crack spread of gasoline products. 

Crack spread is the spread created in commodity markets by purchasing oilfutures and offsetting the position by selling petrol and heating oilfutures. 

PetroVietnam Oil Corporation (PVOIL)'s profit after tax was 190.6 billion VND,after losing 537.7 billion VND in the same period last year. 

Notably, Thu Duc Trading & Import Export JSC (TMC) even reported net profitof more than 4 billion VND, nine times higher than that of lastyear. 

Another company witnessing profit rise sharply was Nam Song Hau TradingInvesting Petroleum JSC (PSH). The company's revenue was up 10 percent overlast year to more than 1.7 trillion VND, resulting in a profit of 44 billionVND, 2.1 times higher than that of the same period in 2020.

Even though there were still some companies recording declines in profitor even losses during the first quarter, in general, oil and gascompanies' results were quite positive. 

With positive oil demand outlook, the oil price is expected to continue torally. Therefore, there is still more room for oil and gas firms torecover. 

SSI forecasted that Brent crude price will trade at an average of 68 USD perbarrel in 2021, up 62.6 percent year-on-year, and can even go up to 70 USD in2022.

According to SSI, developed economies are gradually opening again as they havepushed the vaccination rollout. Businesses activities will also recover quicklywhen countries continue to ease measures to contain COVID-19.

Brent crude was traded at 74.23 USD per barrel on June 17, and on track tohead toward 75 USD./.