PetroVietnam reaches many important targets, operates effectively in harsh times

PetroVietnam continues to record the leading position in the PROFIT500 ranking - Top 500 most profitable enterprises in Vietnam in 2023 by Vietnam Report, with the participation of a series of enterprises in the oil and gas industry such as: PVEP, PV GAS, BSR, PVFCCo, PVCFC, PV Power, PVTrans, PTSC, PVI, PVOIL,...

PetroVietnam về đích nhiều chỉ tiêu quan trọng, hoạt động hiệu quả trong giai đoạn khắc nghiệt

PetroVietnam General Director Le Manh Hung chaired the September 2023 meeting. (Source: PVN)

Vietnam Oil and Gas Group (PetroVietnam) continues to record effective operations of enterprises in the industry during a period that is considered very harsh for the economy in general and enterprises in particular.

By the end of August 2023, PetroVietnam had achieved the full-year plan for two major targets: payment to the state budget and consolidated pre-tax profit. In order to maintain a stable production and business pace and take advantage of opportunities in the final months of the year, PetroVietnam General Director Le Manh Hung directed to continue to be steadfast and make the highest efforts to complete the growth target set at the beginning of the year to expand scale and accelerate business model reconstruction.

In August 2023, the world economic situation showed many difficulties, many production sectors were still in recession. Domestically, all comments said that the possibility of achieving the GDP growth target according to the proposed scenarios was difficult.

Regarding the Oil and Gas industry, although there were positive factors when oil prices increased compared to the previous month, the supply and demand situation and the market still had many shortcomings; the market reacted to the maintenance of Nghi Son Refinery and Petrochemical Plant, leading to high gasoline and oil imports, affecting the domestic market (in August, gasoline and oil imports reached more than 1.2 million ^m3 , 2.6 times higher than the same period last year), fertilizer prices decreased, low electricity mobilization led to very low gas mobilization compared to the plan as well as the same period, affecting crude oil exploitation targets and gas surplus.

In that context, PetroVietnam is constantly striving to implement management solutions, increase production, and boost business to limit the impact of adverse factors. In the first 8 months of 2023, most of the Group's production targets exceeded the assigned plan by 3-29%, in which weak targets including: electricity output, urea, gasoline, LPG, polypropylene... increased compared to the same period in August 2022; Dung Quat Oil Refinery operated at a high capacity of 112 - 114%, contributing to the stable supply of petroleum products to the market, especially during the time Nghi Son Refinery and Petrochemical Plant underwent general maintenance.

Security and safety work at PetroVietnam's factories and projects are ensured, production activities are carried out continuously. Specifically, in August 2023, crude oil production reached 0.85 million tons, exceeding the monthly plan by 13.1%, gasoline production (excluding NSRP) reached 638 thousand tons, exceeding the monthly plan by 35%, polypropylene production reached 16 thousand tons, exceeding the monthly plan by 38.5%,...

In the first 8 months of 2023, most of the Group's production targets exceeded the plan assigned by the State Capital Management Committee, namely: crude oil exploitation reached 7.06 million tons, exceeding the 8-month plan by 14.5% (of which: domestic crude oil exploitation exceeded 17.3%, foreign crude oil exploitation exceeded 3%); nitrogen production reached 108 thousand tons, exceeding 5.2%; electricity production reached 1.07 billion kWh, exceeding 4.2%, LPG reached 588.6 thousand tons, exceeding 21.0%; gasoline production (excluding NSRP) reached 4.80 million, exceeding 29.4%; Polypropylene reached 117.7 thousand tons, exceeding 15.0%......

Thanks to the promotion of production and business, the Group's financial indicators are quite good compared to the decline in oil prices and the decline in output of some products due to the impact of objective factors and the market. In the first 8 months of the year, the total revenue of the Group is estimated at 575.8 trillion VND, exceeding 27% of the 8-month plan, equal to 85% of the yearly plan; The Group's State budget payment has reached the yearly plan 5 months ahead of schedule, with an estimated 90.5 trillion VND in the 8 months, exceeding 16% of the yearly plan. Consolidated pre-tax profit is estimated to exceed 8% of the yearly plan.

The healthy financial situation and flexible management capacity of enterprises in the industry have been objectively assessed and recognized by many prestigious domestic and foreign organizations.

In the presence of the Prime Ministers of Vietnam and Singapore, the PTSC – Sembcorp Joint Venture was granted a license to survey offshore renewable energy projects. (Source: PVN)

Notably, at the end of August, within the framework of the Conference to promote the implementation of Vietnam - Singapore investment cooperation projects, witnessed by Vietnamese Prime Minister Pham Minh Chinh and Singaporean Prime Minister Lee Hsien Loong, the PTSC (PetroVietnam) - Sembcorp (Singapore) Joint Venture was granted a Survey License and Letter of Intent to carry out work related to the development of offshore renewable energy projects in Vietnam, exporting clean electricity to Singapore.

This is an important milestone marking PetroVietnam's pioneering role in the offshore wind power sector as well as "shifting" to "Build and develop Petrovietnam into a leading Energy Industry Group in the country and region; with a core position and role in ensuring national energy security".

Assessing the general situation of 2023 as very difficult, but forecasting that the last months of the year will have more improvements than the first months of the year, Chairman of the Board of Directors of PetroVietnam Hoang Quoc Vuong requested leaders of units to closely direct the implementation of goals and plans to take advantage of market opportunities, to best fulfill assigned targets and tasks in 2023, especially implementing solutions, striving to achieve the target of exploitation output not lower than in 2022.

The Chairman of the Board of Directors of the Group also directed a number of tasks related to the implementation of key projects such as: Lot B Gas - Power Project Chain, Long Phu 1 Thermal Power Plant Project; completing the settlement of projects using the Exploration Fund in 2023; the implementation of investment projects abroad;...

Concluding the regular meeting in September 2023 with the heads of member units in the Group, PetroVietnam General Director Le Manh Hung highly appreciated the efforts of the entire system to maintain the production and business pace, exceeding the assigned targets and tasks in the first 8 months of 2023 in the very difficult context of the world and domestic economy, unpredictable fluctuations in the energy and food markets, etc.

Along with specific instructions for each field and unit, PetroVietnam General Director Le Manh Hung emphasized a number of tasks in September as well as in the coming time such as: Focusing on coordinating with the Central Economic Committee to review, update and complete the report on the Project to assess the implementation of the Vietnam Oil and Gas Industry Development Strategy according to Resolution No. 41-NQ/TW of the Politburo; closely following the handling of projects submitted to the Government such as: the Group's restructuring project until 2025, the 5-year plan 2021-2025, the oil and gas operation plan in the East Sea in 2024; implementing well the conclusions/recommendations of competent authorities related to the activities of the Group and its member units, completing the settlement work related to the Exploration Fund and the settlement work of equitized units in accordance with regulations and progress requirements;...

Ca Mau Fertilizer Plant completed overall maintenance ahead of schedule. (Source: PVN)

With specific tasks, the Group's General Director directs the entire Group to continue to be steadfast and make efforts to achieve the set management goals to expand scale, accelerate business model regeneration, especially expanding scale through total revenue, improving asset utilization efficiency; closely following the market, carefully assessing the macroeconomic situation to allocate goals and implementation plans for each block/field.

In particular, the Group's Deputy General Directors in charge of various fields closely monitor, urge, and remove difficulties for the unit to promptly take advantage of market opportunities.

For the field of prospecting, exploration and exploitation, it is necessary to continue focusing on implementing solutions to complete output targets, ensure gas sources for electricity production, and thoroughly implement the 2024 plan to coordinate activities within the bloc with related service sectors.

For the field of petrochemical refining and petroleum products trading, it is necessary to focus on expanding the market, maintaining high safety in operations, improving capacity, increasing revenue, sharing support within the entire Group to improve production and business efficiency, and at the same time contributing to ensuring the supply of petroleum for the economy according to the direction of the Prime Minister.

In the field of technical services, assess difficulties, support units, promptly approve investment plans, forecast the employment situation in the coming time. The gas - electricity - fertilizer block ensures the availability of factories, proactively plans fuel and raw material sources and builds participation/bid scenarios according to market fluctuations;... In addition, continue to update investment strategies, capital plans, cash flow for project implementation, focus on implementing large projects, especially the Block B - O Mon project chain, the implementation of O Mon 3 and O Mon 4 power plant projects as well as mid-stream and upstream projects in the chain.

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