PetroVietnam responds effectively to fluctuations, profit exceeds 75% of plan

The world geopolitical situation continues to evolve in a complex and unpredictable manner, not only greatly affecting the global economy but also significantly affecting the Vietnamese economy, causing fluctuations in the market for petroleum products... greatly affecting the production and business activities of the Vietnam Oil and Gas Group ( PetroVietnam ).

Thanks to good management, most production targets were exceeded, so although the prices of PetroVietnam's key products decreased, especially the petrochemical refining profit margin decreased by 32.5% compared to the same period in 2023, greatly affecting the operating efficiency of the petrochemical refining sector, PetroVietnam's financial targets were all exceeded by 31 - 75% of the 7-month plan and had high growth compared to the same period in 2023.

Total revenue of the Group is estimated at 567.4 trillion VND, exceeding 31% of the 7-month plan, up 14% over the same period; Total budget payment of the Group is estimated at 84.6 trillion VND, exceeding 54% of the 7-month plan, up 8% over the same period; Consolidated pre-tax profit of the Group is estimated at 29.6 trillion VND, exceeding 75% of the 7-month plan.

Along with production and business activities, PetroVietnam actively implements many meaningful, practical and timely social security activities to support people in storm and flood areas (Son La, Dien Bien, etc.), build Great Solidarity houses for the poor, supporteducational and training programs and projects, healthcare, etc. with a total value of social security implementation in the first 7 months of 2024 reaching 467 billion VND.

Promoting the results and achievements in management and operation, PetroVietnam continues to maintain impressive growth momentum in most production and business indicators. (Source: PVN)

PetroVietnam leaders affirmed that the above results were achieved because the Group has consistently implemented good fluctuation management, closely followed market developments to have effective management and operation solutions, maintained production and business activities, reasonable inventory, minimized the impact of unfavorable factors, and at the same time took advantage of opportunities to compensate for risks.

Managing fluctuations has become a culture, a unique feature in corporate governance at PetroVietnam; forecasting, developing response scenarios as well as solution sets to optimize value chains and linkage chains have become the "key" for the Group and its units to successfully overcome difficulties. This is the basis and foundation for PetroVietnam to respond to difficulties and challenges and achieve positive results in the remaining months of 2024.

According to Chairman of the Board of Directors of PetroVietnam Le Manh Hung, the difficulties and challenges that the Group has faced in the past time are very great. However, it is forecasted that the difficulties and challenges that the Group will face in the remaining months of 2024 will be even greater, and will have a stronger impact and influence on the Group's operations.

To minimize negative impacts, stop the decline, thereby maintaining growth momentum, Mr. Le Manh Hung said, PetroVietnam will continue and synchronously deploy solutions to further optimize corporate governance, strengthen linkage chains, and increase the oil and gas value chain, such as: Strengthening close coordination between the Board of Directors and the Executive Board in managing the Group's fields of operation; continuing to review and reform administration and internal procedures; promoting oil exploitation to take advantage of market opportunities; optimizing production, maintenance and repair; promoting market expansion, finding new drivers for growth; seeking solutions to promote investment, especially implementing key projects; managing finance and capital, ensuring resources to implement the development strategy.

In particular, to serve the implementation of the development orientation to become a national Industry - Energy Group, Mr. Le Manh Hung said that PetroVietnam has developed plans, taken actions and actively coordinated with functional agencies to realize and institutionalize Resolution 41-NQ/TW and Conclusion 76-KL/TW of the Politburo .

The Party Committee of the Vietnam National Oil and Gas Group has issued a Plan to implement the development strategy to 2030, with a vision to 2050 in the spirit of Conclusion No. 76-KL/TW, emphasizing the need to advise on institutionalizing the policies and orientations of Resolution 41-NQ/TW and Conclusion 76-KL/TW into mechanisms, policies and laws to facilitate the rapid and sustainable development of the oil and gas industry, promote the formation of national energy centers, ensure capital sources for PetroVietnam to implement strategic goals and strengthen decentralization, delegation of authority, inspection, examination and supervision of activities in the oil and gas sector.

At the same time, concretize the development orientation of PetroVietnam to become a national Industry - Energy Group associated with development, improving operational efficiency in traditional energy fields; participating in the value chain of new energy, renewable energy, especially offshore wind power, coastal wind power, hydrogen, ammonia, import supply chain, LNG trading, energy equipment manufacturing... in the direction of focusing on large, strategic projects, spreading impact, high efficiency.

Promoting the results and achievements in management and operation, PetroVietnam continued to maintain impressive growth momentum in most production and business targets in the first months of the year, notably the consolidated profit of the entire Group in the first 7 months was estimated at 29.6 trillion VND, exceeding 75% of the plan.

Nhon Trach 2 Power Plant. (Source: PVN)

With a consistent viewpoint and motto in managing fluctuations, by the end of July 2024, PetroVietnam still maintained impressive growth momentum in most production and business indicators. Oil and gas factories and projects operated safely and stably, ensuring readiness and availability, meeting the highest demand for mobilizing and consuming essential products, gasoline, gas, electricity, fertilizers, etc. for the economy.

In July 2024, PetroVietnam's key production targets were mostly completed and exceeded the monthly plan by 6.3 - 19.9%, such as: Crude oil exploitation reached 0.81 million tons, exceeding the monthly plan by 15.9%; Gas exploitation reached 519 million m3, exceeding the monthly plan by 14.7%; Nitrogen production reached 163.2 thousand tons, exceeding the monthly plan by 6.3%; Gasoline production (excluding NSRP) reached 652.6 thousand tons, exceeding the monthly plan by 16.6%...

The Group has put into operation 3 LPG tanks at PV GAS Vung Tau Port Warehouse; Thai Binh 2 Thermal Power Plant has officially joined the electricity market.

In general, in the first 7 months of 2024, the Group's production continued to be ensured. Most of the Group's production targets exceeded the plan by 4.4 - 30.4%, an increase of 7 - 15.2% over the same period in 2023, such as: Crude oil exploitation reached 5.81 million tons, exceeding the 7-month plan by 19.1%; Other gas exploitation 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% over the same period (however, gas exploitation was only 90% of the Group's exploitation capacity and electricity production was 92.7% of the Group's 7-month plan due to a sharp decrease in electricity and gas mobilization); Nitrogen production reached 1.11 million tons, exceeding the 7-month plan by 6.3%, an increase of 7% over the same period; Petroleum production (excluding NSRP) reached 3.64 million tons, exceeding the 7-month plan by 21% (including output from NSRP reaching 8.54 million tons, exceeding the 7-month plan by 19.2%, up 10.6% over the same period); NPK production reached 194.2 thousand tons, exceeding the 7-month plan by 4.4%, up 15.2% over the same period in 2023.

According to PetroVietnam General Director Le Ngoc Son, in the face of difficulties and challenges in the market, which are developing faster and more negatively than forecast, PetroVietnam will focus on managing fluctuations; closely following the country's growth scenario and the macro situation to propose effective management and operation solutions in the coming months. In particular, PetroVietnam will strengthen the assurance of safety, health, environment, and fire prevention for factories and projects to ensure that production and business activities are carried out safely and smoothly.

In particular, it is necessary to closely monitor and forecast the market situation to propose solutions for production and business management, product distribution, and reasonable inventory to limit the impacts of negative fluctuations. In addition, it is necessary to strengthen production management, especially oil exploitation, review technical solutions, promote projects to be put into operation early this year to increase output; ensure cash flow for production and business activities; actively review and implement investment and restructuring work according to plan; actively and proactively participate in proposing amendments and removing obstacles in mechanisms and policies for operations, develop draft laws related to operations, as well as in performing tasks related to the implementation of Resolution 41-NQ/TW and Conclusion 76-KL/TW of the Politburo.

In order to promote the Group's production and business activities in the last months of the year, and to be steadfast in its growth targets, the General Director of PetroVietnam has recently issued Directive 5755/CT-DKVN dated August 12, 2024 on key tasks and solutions to implement goals and tasks in the last months of the year, in order to ensure the completion of the Group's 2024 management plan. Accordingly, the goal set by PetroVietnam in the remaining months of the year is to strive to achieve the highest level of the 2024 management plan, promote growth and development targets, and contribute to the socio-economic development of the country.

Petrovietnam delegation in Muong Pon commune, Dien Bien district. (Source: PVN)

In the remaining months of 2024, the Group and its units will continue to develop detailed goals, tasks, and implementation solutions, in accordance with the actual operating situation of the units each month. In particular, the units will seriously organize and thoroughly implement the most important goal of ensuring the implementation of the management plan and striving for growth among all officers, employees, and workers.

In addition to performing production and business tasks, to create motivation and room for development in the coming period, thoroughly grasping the spirit of the Group's Investment - Finance Conference in 2024, the General Director of Petrovietnam requested units to seriously implement the tasks, solutions and directions of the Group in investment management; strengthen inspection and supervision of the implementation of investment plans and final settlement of investment projects. In the coming time, the Group will drastically accelerate the progress of investment implementation, disbursement of investment capital, striving to complete the highest investment plan in 2024.

With the results achieved in the first 7 months of 2024 and the achievements in the period 2020-2024, especially the lessons in "fluctuation management", PetroVietnam will maintain its growth momentum and make many important contributions to the socio-economic development of the country in the coming time.

Source: https://baoquocte.vn/petrovietnam-effectively-supports-profit-revenue-exceeding-75-ke-hoach-285227.html