Electricity production increased sharply, revenue exceeded 20% of plan

  In May, crude oil and petroleum product prices continued to decrease, affecting the production and business efficiency of Petrovietnam as well as its member units. The average crude oil price in May 2023 decreased by 11% compared to the average in April and by 7% compared to the average in the first quarter of 2023, and by 33% compared to the same period in 2022. Oil refining profit margins, gas prices, fertilizer prices, gasoline prices, etc. all decreased.

In that context, with the effort to increase production to partly offset the losses from the fluctuation of energy prices, Petrovietnam has exceeded its production and business plan; contributing to the supply of strategic products: Gas, electricity, fertilizer, gasoline... for the economy . In May and the first 5 months of the year, the Group's production targets all exceeded the plan, especially in May, positive growth was recorded, contributing to stabilizing and ensuring national energy security.

Specifically, crude oil production in May 2023 reached 0.92 million tons, exceeding the monthly plan by 15.6%; the total for 5 months reached 4.41 million tons, exceeding the 5-month plan by 13.8%. More good news for Petrovietnam is that in early June, the Oil and Gas Exploration and Production Corporation (PVEP) tested the Dai Hung Nam-4X well and gave very positive results. The test results at 12:20 on June 8 showed that the well had good oil and gas signs with a maximum test flow of about 6,350 barrels of oil/day and 4.5 million cubic feet of gas/day. With such a flow, it affirms that the potential of the Dai Hung Nam area is commercial enough and ready for exploitation. This is also the premise for PVEP to continue developing and exploiting Lot 05.1(a) as well as other lots in the Nam Con Son basin, contributing to Petrovietnam's oil and gas production in the coming time.

Petrovietnam's offshore oil and gas exploitation project.

Petrovietnam's gas production in May reached 0.75 billion cubic meters, exceeding the monthly plan by 27.6%; the total for the first 5 months reached 3.44 billion cubic meters, exceeding the 5-month plan by 21.8%. The average daily gas production in May is also the highest level since the beginning of the year. Nitrogen production in May reached 158.4 thousand tons, exceeding the monthly plan by 5.5%; the total for the first 5 months reached 719.5 thousand tons, exceeding the 5-month plan by 11.1%. Gasoline production (excluding products of Nghi Son Refinery and Petrochemical Company Limited) in May 2023 reached 570.2 thousand tons, exceeding the May plan by 14.4%; the total for the first 5 months reached 2.92 million tons, exceeding the 5-month plan by 13.3%, up 4.7% over the same period in 2022.

In particular, when there was a shortage of electricity for production and daily life, especially in May, Petrovietnam made efforts to provide maximum fuel for electricity production, optimize the operation of the Group's power plants to increase supply to the system, contributing to reducing the pressure on electricity supply. The Group's electricity production in May 2023 reached 2.36 billion kWh, an increase of 85.5% over the same period in 2022; in the first 5 months, it reached 10.12 billion kWh, an increase of 48% over the same period in 2022.

With high-speed production efforts, Petrovietnam's financial indicators in the first 5 months of the year also exceeded the plan, making an important contribution to the economy. Total revenue of the Group is estimated at 334 trillion VND, exceeding the 5-month plan by 20%. The total state budget contribution of the Group (excluding Nghi Son Refinery and Petrochemical LLC) is estimated at 54.5 trillion VND, exceeding the 5-month plan by 45%. Consolidated pre-tax profit is estimated at 21.7 trillion VND, exceeding the 5-month plan by 63% and equal to 63% of the 2023 plan.

Linking business goals with the country's overall goals

  Sharing about Petrovietnam's plans in the coming time, Chairman of the Board of Members of Petrovietnam Hoang Quoc Vuong emphasized that, in order to fulfill the expectations of the Prime Minister , the entire Group must strive and make greater efforts to successfully complete the targets set by the management plan, to partly compensate for the difficulties of the economy. Chairman of the Board of Members of Petrovietnam Hoang Quoc Vuong also requested the units to focus on implementing the Block B-O Mon gas project, as well as the component projects in the chain to ensure the progress targets of this very important project.

Emphasizing that in the context of economic difficulties, the role of state-owned enterprises is very necessary, Petrovietnam General Director Le Manh Hung said that the goals of state-owned enterprises must be linked to the common goals of the country. Accordingly, in the coming time, the entire Group and its member units need to review and update goals, allocate targets for implementing plans in the following months; implement production and business plans, and manage to ensure maintenance and growth of production output, especially in the fields of oil and gas exploration and exploitation, petrochemical refining, gas industry, and electricity industry. Along with that, review investment work, manage investment portfolios, create changes, increase the proportion of investment capital disbursement; focus on implementing and promoting large, key projects such as: Block B-O Mon; upgrading and expanding Dung Quat Oil Refinery; Nhon Trach 3 and 4 Power Plant Project... ensures balance of capital and cash flow for projects...

Article and photos: AN SON