Petrovietnam reaches revenue target and budget contribution for the whole year 2024

Petrovietnam General Director Le Ngoc Son

Improve production efficiency, reduce costs by 2,117 billion VND

In September 2024, the world's purchasing managers' index (PMI) decreased by 0.7 points compared to the previous month, below the average for 3 consecutive months. In this general picture, Vietnam's PMI in September decreased by 5.1 points compared to August due to production conditions being severely affected by Typhoon Yagi. In the market, the average crude oil price in September and 9 months both decreased compared to the same period in 2023. Following the trend of oil prices, the prices of petroleum products in September also decreased by 3-8% compared to the average of the previous month. In contrast, the prices of gas, fertilizer, and steel tended to increase.

In that context, thanks to the synchronous and effective implementation of management solutions, Petrovietnam's key production targets all exceeded the plan by 9.6-25.2% in September.

The Group seriously organizes the implementation of assigned tasks in Conclusion No. 76-KL/TW; Resolution No. 38/NQ-CP; draft strategy for developing the Vietnam Oil and Gas industry; draft strategy for developing the Vietnam Oil and Gas Group.

On October 1, PetroVietnam Power Corporation (PV Power) signed a credit contract of 521.5 million USD with a consortium of two banks, Citi and ING, for the Nhon Trach 3 and 4 Thermal Power Plant Project. At the same time, on October 4, PV Power and EVNEPTC signed a Power Purchase Agreement (PPA) for these two plants. Also on October 4, Petrovietnam and EVN signed a memorandum of understanding on the supply of LNG from the Vung Ang LNG warehouse to the Quang Trach II LNG Thermal Power Plant.

PV Power and EVNEPTC signed the Power Purchase Agreement (PPA) for Nhon Trach 3 and 4 Power Plants, opening a new step for LNG-powered power projects.

Regarding production targets, in September, the Group's crude oil output reached 786 thousand tons, exceeding the monthly plan by 25.2%, the accumulated output in the first 9 months reached 7.43 million tons, exceeding the 9-month plan by 20.7%; electricity output in September reached 1.65 billion kWh, the accumulated output in the first 9 months reached 20.88 billion kWh, up 18.4% over the same period in 2023. Urea and gasoline production output (excluding NSRP) in September reached 141 thousand tons and 626.8 thousand tons, respectively; the total output in the first 9 months reached 1.39 million tons and 4.9 million tons. These two sectors are expected to exceed the annual plan.

Notably, Petrovietnam has saved VND 2,117 billion in waste prevention in the past 9 months, reaching 94% of the 2024 reduction plan. Of which, savings from raw materials, management costs, sales, finance, etc. reached VND 1,782 billion, equal to 96% of the yearly plan; savings from investment management, optimizing exploitation operations, and purchasing equipment reached VND 334.8 billion, equal to 83% of the yearly plan.

Finishing in a Challenging Context

With the target set for the following year higher than the previous year, thanks to efforts in production and business, the total revenue of the Group in the first 9 months of the year is estimated at 736.5 trillion VND, completing 100% of the yearly plan, reaching the target 3 months ahead of schedule, up 12% over the same period in 2023; the total State budget contribution of the Group is estimated at 115.2 trillion VND, exceeding 23% of the yearly plan, reaching the target 4 months ahead of schedule, up 9% over the same period in 2023.

Looking back at the production and business results of the past 9 months, the Group has fully completed 6/6 financial targets for the whole year 2024 according to the plan assigned by the State Capital Management Committee at Enterprises and the Board of Members (BOD), reaching the target 3-5 months ahead of schedule. Of which, 5/6 growth targets are from 9-31%: total revenue of the Group increased by 12%; total State budget contribution of the Group increased by 9%; consolidated revenue increased by 14%.

The first LNG station in the North is put into use in Bac Ninh

In addition to production and business activities, Petrovietnam also devotes a lot of resources to social security activities with a total value of 480 billion VND in the first 9 months of 2024. In particular, the Group has coordinated with the People's Committee of Lao Cai province to implement the Kho Vang Village Reconstruction Project, Coc Lau Commune, Bac Ha District under the direction of the Prime Minister, and will be completed in 2024 so that people in Kho Vang Village will soon have a new place to live and stabilize their lives.

Efforts to find a solution to the finish line

Although the two major targets have been completed, Petrovietnam believes that the market context is facing many challenges and is on the rise, negatively impacting production output and business targets in all areas of the Group. Therefore, it is necessary to find solutions to overcome difficulties and prepare for growth momentum in 2025.

With that spirit, many solutions to adapt to difficult market developments have been implemented by Petrovietnam's member units, such as: Vietsovpetro Joint Venture, Oil and Gas Exploration and Production Corporation (PVEP), Bien Dong Petroleum Operating Company (BIENDONG POC) proactively planned, optimized productivity, ensured output and financial targets; Vietnam Gas Corporation (PV GAS), PV Power, Oil and Gas Power Generation Branch (PVPGB) focused on ensuring good plant availability, optimizing costs, promoting production to meet the maximum demand of the country; Petrovietnam Fertilizer and Chemicals Corporation (PVFCCo) calculated to accelerate the conversion to organic fertilizer production to avoid dependence on high raw material prices...

The maintenance of Unit 2 of Vung Ang 1 Thermal Power Plant is guaranteed to be effective and safe.

Petrovietnam General Director Le Ngoc Son acknowledged that in the first 9 months of 2024, despite having well implemented the legal targets of the State Capital Management Committee at Enterprises and the Board of Directors, with many financial targets increasing compared to the same period, in the challenging context, outstanding difficulties have emerged, requiring the determination of the entire Group to complete the set goals for the whole year 2024 and prepare for development momentum for 2025. Units are highly focused on completing production and business plans, minimizing non-essential activities. At the same time, units are preparing early for the 2025 plan with expected implementation scenarios, ensuring enough motivation and aspirations for the coming year.

From that orientation, the Group needs to continue to maintain management and control, maintain the set plan, and steadfastly not retreat; focus on reviewing recommendations and removing difficulties for units related to production, business and investment; strengthen decentralization and delegation of authority to support and increase the initiative of units; effectively control costs, especially those with large costs, minimize damage due to market impacts and flexibly balance inventories. Units ensure environmental safety, not allowing even the smallest incident to occur.

Forecasting work needs to be improved to take advantage of opportunities and identify difficulties early. Regarding growth drivers, units focus on developing science and technology and investing, preparing momentum for the following years.

In the field of new energy, the Group needs to form related apparatuses, prepare human resources and resources to develop renewable energy types, meeting the global energy transition trend.

Regarding the work of amending a series of laws, units proactively followed, reviewed, and contributed opinions to the drafts and determined that this was the basis and premise for successfully completing the 2025 plan and long-term vision.

Phuong Thao - Hien Anh

Source: https://www.pvn.vn/chuyen-muc/tap-doan/tin/a37b4546-b00d-472d-a31b-86d242f37694