2023 will continue to face the difficulties that have persisted since the pandemic, and many “headwinds” will also appear. Of these, two “headwinds” are very prominent and have a strong impact on the macro economy.
The first is the slowing growth of the world economy and major economies, leading to fragmentation and a huge impact on global demand. The second is inflation and interest rates.
For Vietnam, this is a big “headwind” because Vietnam is trying to maintain low inflation below 4% and low interest rates like now, which is contrary to the world when currently the world’s economies are using high interest rates to control inflation.
Meanwhile, not only Petro Vietnam but also the oil and gas industry and the energy sector in general are facing great difficulties, which are the trend of energy transition and instability in supply, demand and prices. Prices of energy products have decreased sharply compared to 2022, in which crude oil prices have decreased by 17-38%, fertilizer prices have decreased by 25-30%, and petrochemical refining profit margins have decreased by 24-26%.
Petro Vietnam has maintained stable oil and gas exploitation activities in 2023, reaching the assigned targets early.
In particular, the global supply chain is facing many difficulties due to conflicts and embargoes around the world, which have greatly affected all aspects of Petro Vietnam's operations, including the field of oil and gas exploration and exploitation - the core field of Petro Vietnam when the implementation of drilling programs is affected by the lack of input supply.
Faced with that situation, right from the beginning of the year, the Group's leaders, including General Director Le Manh Hung, worked with each unit and each block to develop a production and business plan for 2023, deploy management solutions, technical solutions, increase production, boost business, limit the impact of unfavorable factors; focus on maintaining fluctuation management, cost management, research market fluctuation trends to deploy appropriate exploitation activities, especially taking advantage of opportunities to increase cash flow and profits at favorable oil price times...
In all situations, Petro Vietnam still ensures the supply of gasoline to serve socio-economic development.
Through monthly CEO meetings, Petro Vietnam General Director Le Manh Hung always pays attention to the Group's general work program in 2023, which is "Managing fluctuations; expanding scale; accelerating digital transformation; shifting models; improving productivity; and regenerating business".
This is also the basis for the Group and its member units to deploy work and tasks in 2023 in a synchronous, consistent, effective and quality manner.
The special point in 2023 is that the Group and its units do not just stop at the goal of completing the assigned plan but have set a "more ambitious" goal with more difficult challenges, requiring more consensus, joint efforts, and efforts for the growth target of the following year being higher than the previous year, and the following month being higher than the previous month.
In the past time, the Government has always had close instructions with support from Central and local Departments/Ministries/Agencies and especially the solidarity, self-reliance, self-reliance, and high determination of all officers, employees and workers of the Group.
Along with that, the Party Committee and the Board of Members agreed to promote the effective and timely experience in managing fluctuations of the Group's Executive Board, helping Petro Vietnam complete and finish ahead of schedule for the whole year of 2023 in most important production and business targets.
Specifically, Petro Vietnam has completed all financial targets, reaching the target 1.5 - 5 months ahead of the assigned plan for the whole year of 2023. Of which, the Group's budget payment completed the yearly plan 5 months ahead of schedule (reaching 78.3 trillion VND on July 30, 2023). The Group's consolidated profit completed the yearly plan 4 months ahead of schedule (reaching 34.7 trillion VND on August 31, 2023).
Oil and Gas workers unite and work together for the Group's sustainable growth aspirations.
The Group's total revenue completed the yearly plan 2 months and 20 days ahead of schedule (reaching VND 677.7 trillion on October 10, 2023). The Group's total consolidated revenue completed the yearly plan 2 months and 18 days ahead of schedule (reaching VND 413.7 trillion on October 12, 2023).
Total revenue of the parent company - Group completed the whole year plan 1 month and 15 days ahead of schedule (reaching 181.6 trillion VND on November 15, 2023). Pre-tax profit of the parent company - Group completed the whole year plan 4 months ahead of schedule (reaching 10.9 trillion VND on August 31, 2023).
Two prominent areas contributing significantly to the Group's financial performance are oil and gas exploration and exploitation, oil and gas processing, storage and distribution of oil and gas products.
Petro Vietnam's oil and gas exploration and exploitation sector had a great success in 2023 when it completed the target of increasing oil and gas reserves for the whole year 1 month and 10 days ahead of schedule (reaching 12 million tons of oil equivalent/the whole year plan of 8-16 million tons of oil equivalent by November 20, 2023).
At the same time, Petro Vietnam made two new oil and gas discoveries at Block 16-2 (Háp Mã Vàng-1X well) and at Block PM3-CAA (Bunga Lavatera-1 well). This is a very encouraging result as for the first time in the past five years, the Group has made two new discoveries in one year.
The Group's leaders honored and rewarded the professional departments that contributed to the early completion of production and financial targets in 2023.
Domestic oil production completed the yearly plan 1 month and 18 days ahead of schedule when it reached 7.52 million tons on November 12, 2023. As of November 21, domestic oil production reached 7.71 million tons, exceeding the yearly plan by 2.5%, contributing significantly to the Group completing the yearly oil production plan (domestic and foreign) when it reached 9.29 million tons on November 21 - 1 month and 9 days ahead of schedule.
In the production sector, Petro Vietnam's petroleum production output (excluding Nghi Son) completed the yearly plan 2 months and 25 days ahead of schedule (reaching 5.53 million tons on October 6, 2023).
The Group's petroleum business output completed the annual plan 2 months ahead of schedule (reaching 9.06 million tons on October 30, 2023. PVOIL completed the annual plan of 3.3 million tons 4 months ahead of schedule; PVNDB is expected to complete the annual plan of 5.76 million tons 20 days ahead of schedule (on December 10-11, 2023), contributing significantly to maintaining the supply of petroleum, thereby affirming that Petro Vietnam has performed well the tasks assigned by the Government, Prime Minister, and Ministry of Industry and Trade.
The results achieved show the effectiveness in management and operation of Petro Vietnam as well as the efforts of contractors and units in implementing production and business activities.
Petro Vietnam General Director Le Manh Hung said that achieving the production and financial targets early is a source of encouragement and motivation for the spirit and responsibility of all officers, employees and workers of the Group to be steadfast in the growth target, strive to compete to achieve all targets, and strive to achieve the highest assigned plan targets in 2023.
On this occasion, the Group's leaders organized a celebration, commendation, honor and encouragement for the Group's professional departments that have contributed to the achievement of early completion of production and financial targets in 2023.
During the remaining time of 2023, Petro Vietnam will be steadfast in its set goal of completing the assigned tasks to the highest level, striving for growth aspirations.
The results in 2023 will be the basis for Petro Vietnam to continue to strive and nurture the goal of building and developing the Group to become the leading Energy Industry Group of the country and region, in line with the new development trend with new driving forces and new opportunities in the coming time.
Bao Anh
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