Responding effectively to volatility, profits increased by 30%.
In July, the global geopolitical situation continued to be complex and unpredictable, significantly impacting not only the global economy but also the Vietnamese economy, causing fluctuations in the oil and gas market… greatly affecting Petrovietnam 's production and business activities.
However, thanks to a consistent approach and principles in managing fluctuations, Petrovietnam maintained impressive growth in most production and business indicators by the end of July 2024. Oil and gas plants and facilities operated safely and stably, ensuring availability and meeting the highest demand for essential products such as gasoline, gas, electricity, and fertilizers for the economy .
In July 2024, most of Petrovietnam's key production targets were exceeded by 6.3-19.9%, such as: Crude oil production reached 0.81 million tons, exceeding the monthly target by 15.9%; gas production reached 519 million m3, exceeding the monthly target by 14.7%; urea production reached 163.2 thousand tons, exceeding the monthly target by 6.3%; petroleum product production (excluding NSRP) reached 652.6 thousand tons, exceeding the monthly target by 16.6%…
Successfully launched the BK-23 platform base.
The corporation has put into operation 3 LPG storage tanks at the PV GAS Vung Tau Port Terminal; Thai Binh 2 Thermal Power Plant has officially entered the electricity market.
Overall, in the first seven months of 2024, the Group's production continued to be ensured. Most of the Group's production targets were completed exceeding the plan by 4.4-30.4%, and increased by 7-15.2% compared to the same period in 2023, such as: Crude oil production reached 5.81 million tons, exceeding the 7-month plan by 19.1%; other gas production reached 3.97 billion m3, exceeding the 7-month plan by 30.4%; electricity production reached 17.22 billion kWh, an increase of 15.2% compared to the same period (however, gas production was only 90% of the Group's production capacity and electricity production was 92.7% of the Group's 7-month plan due to a sharp decrease in gas-fired power generation); urea production reached 1.11 million tons, exceeding the 7-month plan by 6.3%, and increased by 7% compared to the same period. Petroleum production (excluding NSRP) reached 3.64 million tons, exceeding the 7-month plan by 21% (if including NSRP production, it reached 8.54 million tons, exceeding the 7-month plan by 19.2%, and increasing by 10.6% compared to the same period); NPK production reached 194.2 thousand tons, exceeding the 7-month plan by 4.4%, and increasing by 15.2% compared to the same period in 2023.
Thai Binh 2 Thermal Power Plant officially entered the electricity market in August 2024.
Thanks to effective management, most production targets were exceeded, so despite the decline in prices of Petrovietnam's key products, especially a 32.5% decrease in refining and petrochemical profit margins compared to the same period in 2023, which significantly impacted the efficiency of the refining and petrochemical sector, Petrovietnam's financial indicators were all exceeded by 31-75% of the 7-month plan and showed high growth compared to the same period in 2023. Total revenue of the Group is estimated at VND 567.4 trillion, exceeding the 7-month plan by 31% and increasing by 14% compared to the same period; total tax contributions to the state budget are estimated at VND 84.6 trillion, exceeding the 7-month plan by 54% and increasing by 8% compared to the same period; consolidated pre-tax profit of the Group is estimated at VND 29.6 trillion, exceeding the 7-month plan by 75%.
Alongside its business activities, Petrovietnam actively implements many meaningful and practical social welfare activities, providing timely support to people in flood-affected areas (Son La, Dien Bien, etc.), building solidarity houses for the poor, and supporting educational , training, and healthcare programs and projects. The total value of social welfare activities in the first seven months of 2024 reached 467 billion VND.
The Group's NPK fertilizer production increased in July.
Petrovietnam's leadership affirmed that these results were achieved because the Group consistently implemented effective volatility management, closely monitored market developments to develop effective management and operational solutions, maintained reasonable production and business operations and inventory levels, minimized the impact of adverse factors, and simultaneously seized opportunities to offset risks. Volatility management has become a culture and a distinctive feature of corporate governance at Petrovietnam; forecasting, developing response scenarios, and implementing solutions to optimize value chains and linkages have become the "key" to the Group and its units successfully overcoming difficulties. This is the basis and foundation for Petrovietnam to respond to challenges and achieve positive results in August and the remaining months of 2024.
Petrovietnam has put into operation 3 LPG storage tanks at the PV GAS Vung Tau Port Terminal.
Optimizing governance, responding effectively to market fluctuations, and maintaining growth momentum.
According to Petrovietnam's Chairman of the Board of Directors, Le Manh Hung, the difficulties and challenges that the Group faced in July and the first seven months of 2024 were significant. However, the difficulties and challenges that the Group will face in the remaining months of 2024 are predicted to be even greater, having a stronger impact on the Group's operations.
To minimize negative impacts, halt the decline, and maintain growth momentum, Mr. Le Manh Hung stated that Petrovietnam will continue to implement comprehensive solutions to further optimize corporate governance, strengthen linkages, and increase the oil and gas value chain, such as: enhancing close coordination between the Board of Directors and the Executive Board in managing the Group's operational areas; continuing to review and reform administrative procedures and internal processes; boosting oil exploration to take advantage of market opportunities; optimizing production, maintenance, and repair; promoting market expansion and finding new drivers for growth; seeking solutions to promote investment, especially the implementation of key projects; managing finances and capital, ensuring resources to implement the development strategy.
Chairman of the Board of Directors of Petrovietnam, Le Manh Hung
In particular, to serve the development orientation of becoming a national industrial and energy corporation, Mr. Le Manh Hung said that Petrovietnam has developed plans and actions and actively coordinated with relevant agencies to realize and institutionalize Resolution 41-NQ/TW and Conclusion 76-KL/TW of the Politburo.
The Party Committee of the Vietnam National Petroleum Group (Petrovietnam) has issued a plan to implement the development strategy until 2030, with a vision to 2050, in accordance with the spirit of Conclusion No. 76-KL/TW. This plan emphasizes the need to institutionalize the guidelines and directions of Resolution 41-NQ/TW and Conclusion 76-KL/TW into mechanisms, policies, and laws that facilitate the rapid and sustainable development of the oil and gas industry, promote the formation of national energy centers, ensure capital for Petrovietnam to achieve its strategic goals, and strengthen decentralization, delegation of authority, inspection, and supervision of activities in the oil and gas sector.
At the same time, the development orientation of Petrovietnam to become a national industrial and energy group is being concretized, focusing on developing and improving operational efficiency in traditional energy sectors; participating in the value chain of new and renewable energy, especially offshore wind power, coastal wind power, hydrogen, ammonia, the import and trading supply chain of LNG, and the production of energy equipment… with a focus on large, strategic projects with widespread impact and high efficiency.
According to Petrovietnam General Director Le Ngoc Son, in the face of market difficulties and challenges, and faster-than-expected and negative developments, Petrovietnam will focus on managing fluctuations; closely monitoring the country's growth scenario and macroeconomic situation to develop effective management and operational solutions in the coming months. In particular, Petrovietnam will strengthen safety, health, environmental protection, and fire prevention measures at its factories and facilities to ensure safe and smooth production and business operations.
General Director of Petrovietnam, Le Ngoc Son
In particular, it is necessary to closely monitor and forecast market conditions to develop appropriate solutions for managing production, business operations, product distribution, and inventory to mitigate the impact of negative fluctuations. In addition, it is crucial to strengthen production management, especially in oil exploration, review technical solutions, and promote projects to be put into operation this year to increase production; ensure cash flow for production and business activities; actively review and implement investment and restructuring plans; and actively and proactively participate in proposing amendments and resolving obstacles related to mechanisms and policies for operations, developing draft laws related to operations, as well as in carrying out tasks related to the implementation of Resolution 41-NQ/TW and Conclusion 76-KL/TW of the Politburo.
To boost the Group's production and business activities in the remaining months of the year, and to remain steadfast in its growth targets, the General Director of Petrovietnam recently issued Directive 5755/CT-DKVN dated August 12, 2024, on key tasks and solutions to achieve the goals and objectives in the remaining months of the year, aiming to ensure the completion of the Group's 2024 management plan. Accordingly, Petrovietnam's goal for the remaining months of the year is to strive to achieve the highest possible completion of the 2024 management plan, promote growth and development, and contribute to the socio-economic development of the country.
In the remaining months of 2024, the Group and its units will continue to develop detailed goals, tasks, and implementation solutions, tailored to the actual operational situation of each unit on a monthly basis. In particular, the units will seriously organize the dissemination of the most important objective: ensuring the implementation of the management plan and striving for growth among all officers, employees, and workers.
Petrovietnam Deputy General Director Do Chi Thanh presents gifts and encourages people in Son La who suffered heavy losses due to floods.
In addition to fulfilling its production and business objectives, and to create momentum and room for development in the coming period, in line with the spirit of the Group's 2024 Investment and Finance Conference, the General Director of Petrovietnam requested that all units seriously implement the Group's tasks, solutions, and directives in investment management; and strengthen inspection and supervision of investment plan implementation and project settlement. In the coming period, the Group will resolutely accelerate investment implementation and disbursement, striving to achieve the highest possible completion rate of the 2024 investment plan.
With the results achieved in the first seven months of 2024 and the achievements made during the 2020-2024 period, especially the lessons learned in "volatility management," Petrovietnam will maintain its growth momentum and make many important contributions to the socio-economic development of the country in the coming time.
VOV.VN
Source: https://vov.vn/doanh-nghiep/doanh-nghiep-24h/petrovietnam-duy-tri-da-tang-truong-an-tuong-post1115860.vov
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