PetroVietnam overcomes headwinds to nurture its goal of becoming a leading energy industry group

The results in 2023 will be the basis for PetroVietnam to continue to strive and nurture the goal of building and developing into the leading Energy Industry Group of the country and region, in line with new development trends with new driving forces and new opportunities.

PetroVietnam vượt gió ngược nuôi dưỡng mục tiêu trở thành Tập đoàn Công nghiệp năng lượng hàng đầu

PetroVietnam achieved many important targets, operating effectively during a difficult period. (Source: PVN)

With its role and position as the country's leading economic group, contributing to ensuring national energy security, PetroVietnam is constantly striving to implement solutions to successfully complete the assigned tasks in 2023 to realize its growth aspirations.

Facing the Headwinds

2023 will continue to face difficulties from the pandemic period, and many "headwinds" will also appear.

There are two prominent “headwinds” that have a strong impact on the macro economy. The first is the slowing growth rate of the world economy and major economies, leading to fragmentation and a huge impact on global demand.

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 as it is now, this is contrary to the world when currently the world's economies are using high interest rates to control inflation.

Meanwhile, not only the Vietnam National Oil and Gas Group (PetroVietnam) 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 and 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%.

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 PetroVietnam's operations, including the field of oil and gas exploration and exploitation - the core field of PetroVietnam, when the implementation of drilling programs is greatly 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, implementing management solutions, technical solutions, increasing production, boosting business, limiting the impact of unfavorable factors; focusing on maintaining fluctuation management, cost management, researching market fluctuation trends to deploy appropriate exploitation activities, especially taking advantage of opportunities to increase cash flow and profits at favorable oil price times...

Through monthly CEO meetings, PetroVietnam General Director Le Manh Hung has always noted the Group's general work program in 2023, which is "Managing fluctuations; Expanding scale; Accelerating digital transformation; Shifting models; Improving productivity; 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 next year being higher than the previous year, next 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 have agreed to effectively and promptly promote the experience in managing fluctuations of the Group's Executive Board, helping PetroVietnam complete and finish ahead of schedule for the whole year of 2023 in most important production and business targets.

Striving for growth aspirations

Specifically, PetroVietnam completed all financial targets, finishing 1.5 - 5 months ahead of the assigned 2023 plan. Of which, the Group's budget payment completed the yearly plan 5 months ahead of schedule (reaching VND 78.3 trillion on July 30, 2023); The Group's consolidated profit completed the yearly plan 4 months ahead of schedule (reaching VND 34.7 trillion on August 31, 2023).

Total revenue of the Group completed the whole year plan 2 months and 20 days ahead of schedule (reaching VND 677.7 trillion on October 10, 2023); Total consolidated revenue of the Group completed the whole year plan 2 months and 18 days ahead of schedule (reaching VND 413.7 trillion on October 12, 2023); Total revenue of the Group's parent company completed the whole year plan 1 month and 15 days ahead of schedule (reaching VND 181.6 trillion on November 15, 2023); Pre-tax profit of the Group's parent company completed the whole year plan 4 months ahead of schedule (reaching VND 10.9 trillion 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.

Petrovietnam'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, Petrovietnam made 2 new oil and gas discoveries at Block 16-2 (Ha Ma Vang -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 5 years, the Group has made 2 new discoveries in one year.

Domestic oil production completed the yearly plan 1 month and 18 days ahead of schedule, reaching 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) by reaching 9.29 million tons on November 21 - 1 month and 9 days ahead of schedule.

In the production sector, Petrovietnam'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.

Oil and gas project at Bir Seba field. As of the end of June 2023, the project has exploited 48.14 million barrels of oil and is expected to reach 50 million barrels in 2023. (Source: PVN)

From there, it is affirmed that PetroVietnam has performed well the tasks assigned by the Government, the Prime Minister, and the Ministry of Industry and Trade: "In all situations, there must be no interruption or shortage of petroleum supply to serve the task of socio-economic development". The results achieved have shown the effectiveness of PetroVietnam's management and operation as well as the efforts of contractors and units in implementing production and business activities.

PetroVietnam General Director Le Manh Hung said that the early completion of output and financial targets is a source of encouragement and motivation for the spirit and responsibility of all officers, employees and workers of the Group to persevere with the growth target, strive to compete to complete 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 output and financial targets in 2023.

During the remaining time of 2023, PetroVietnam will be steadfast in its set goal of completing the assigned tasks to the highest level, striving for growth aspirations.

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