Market risks increase, Petrovietnam still has large revenue

In the first two months of 2024, the revenue of Vietnam Oil and Gas Group (Petrovietnam) still grew by 19% and the State budget contribution increased by 5% compared to the same period in 2023.

Huge revenue of 149,600 billion VND

Recently, new General Director of Petrovietnam Le Ngoc Son chaired an online meeting with leaders of the Group's member units on production and business activities in February and the first two months of the year, expected in the first quarter of 2024, and at the same time deployed tasks in the coming time.

Petrovietnam leaders held a meeting with units

Although crude oil prices in February increased slightly compared to January, they were still 3.1% lower than the same period in 2023. The price index of many other production items of Petrovietnam decreased and was unstable, such as gas prices falling sharply, hitting bottom in February 2024 and continuing to remain low in the first half of March; unstable fertilizer prices (down 10% compared to the same period); petrochemical refining profit margins decreased by 15%; the electricity price mechanism is in the process of being drafted and reviewed for change; coal prices fell sharply (world coal prices in February 2024 decreased by 25% compared to the average of January 2024), affecting gas consumption for electricity as well as industrial production.

Besides, gas and electricity mobilization continues to be low, many gas power plants are almost not mobilized, greatly affecting the production and business efficiency of the Group.

However, thanks to the integrated management and operation solutions from exploitation to transportation and processing; from inventory to production and business organization; the work of ensuring security and production safety at all units/projects/factories/drilling rigs is strictly and smoothly implemented... the Group's production and business targets in February 2024 were all completed exceeding the plan by 3-37%.

In the first two months of the year, most of the Group's production targets exceeded the two-month plan by 5-30%.

Notably, crude oil exploitation reached 1.66 million tons, exceeding the plan by 19%; gas exploitation reached 1.07 billion m3, exceeding the plan by 30% (but only 87% of the Group's supply capacity); nitrogen fertilizer reached 314,000 tons, exceeding the plan by 6%; LPG reached 143,000 tons, exceeding the plan by 6.8%; gasoline (including products of Nghi Son Refinery and Petrochemical) reached 2.67 million tons, exceeding the plan by 8.3%; polypropylene reached 29,200 tons, exceeding the plan by 14%.

PV GAS officially supplies LNG to industrial customers.

Of which, 6 production targets in the first 2 months of the year increased compared to the same period in 2023, namely: gasoline (23.5%); electricity production (11%); LPG increased (6.7%); nitrogen production (2.1%); polypropylene (8.5%); NPK (2.6 times), contributing to market stability and making important contributions to the country's socio-economic development.

Notably, PVFCCo's fertilizer exports in the first two months of the year reached the same level as the whole year of 2023. Ca Mau Fertilizer officially entered the world's two demanding fertilizer markets, Australia and New Zealand, while continuing to conquer the quality of the existing market in the Americas.

PV GAS officially started supplying LNG to industrial customers from March 15, 2024. During the general maintenance period of Dung Quat Oil Refinery, BSR will continue to export products to the market by blending products based on the remaining components and intermediate products at the plant as well as cooperating with Nghi Son Refinery and Petrochemical Plant...

Thanks to good implementation of fluctuation management, although the prices of the Group's key products in the first two months of 2024 decreased by 3 - 15% compared to the same period in 2023, all of the Group's financial indicators exceeded the plan by 18 - 48%, with high growth compared to the same period.

Total revenue of the Group is estimated at 149,600 billion VND, exceeding 28%, up 19% over the same period in 2023; Budget contribution of the Group is estimated at 20,600 billion VND, exceeding 18%, up 5% over the same period in 2023.

Investment implementation reached 3,140 billion VND

Along with that, the investment work was actively implemented by the Group, the total investment value of the Group in 2 months reached 3,140 billion VND, an increase of 58.6% over the same period in 2023.

Petrovietnam continues to focus on accelerating the progress of investment projects: For the Block B - O Mon Gas and Power Project Chain, actively negotiating commercial agreements with relevant parties, with the goal of having FID in April 2024 as planned. The overall progress of the Nhon Trach 3 and Nhon Trach 4 Power Plant projects as of February 29, 2024 reached 80.2%, currently being actively implemented, ensuring the commercial operation of Nhon Trach 3 Power Plant in December 2024, and Nhon Trach 4 Power Plant in June 2025.

According to the assessment of the new General Director of Petrovietnam Le Ngoc Son, the revenue and budget contribution of the whole Group in the first two months of the year met the targets set by the management plan and grew compared to the same period last year, which is a bright spot in the Group's production and business activities.

Dung Quat Oil Refinery conducts general maintenance and continues to export goods during the maintenance period.

Petrovietnam achieved that result in the context of many unfavorable market fluctuations, namely oil and gas production, lower than planned due to large natural decline; gas and electricity consumption is difficult, and policies on prices, fees, consumption, mobilization... in the gas and electricity sector still have many obstacles.

Petrovietnam Chairman of the Board of Directors Le Manh Hung also directed a number of tasks in the coming time such as: focusing on promoting the completion of strategies, institutions, mechanisms and policies for the development of the industry; monitoring risks in the macro economy and financial markets to have response solutions; focusing on investment, closely following progress, handling difficulties in key projects such as Lot B, Nhon Trach 3 and 4; promoting projects to create new growth drivers for the Group in the future such as projects in Long Son and Vung Ang; thoroughly handling difficulties in difficult projects and works such as restructuring DQS, Nghi Son Oil Refinery, etc.

At the meeting, General Director Le Ngoc Son also noted a number of key tasks in the coming time such as: actively implementing solutions, maintaining governance to successfully implement Plan 529, making every effort to fulfill the highest production and business targets of March, the first quarter of 2024 and the following months; closely following and coordinating with relevant ministries, branches, and functional agencies and focusing on directing to promote the completion of legal documents, first of all focusing on promoting mechanisms and policies related to LNG, gas, and electricity, considering this a key task for the development throughout the Group's chain of activities from exploration and exploitation to production and consumption.

Continue to optimize exploitation activities, apply solutions to limit the decline in natural output, along with promoting investment and mine development to ensure oil and gas production; focus resources, closely follow the progress of key projects, especially the Block B project; actively prepare for work related to the annual general meeting of shareholders at member units;....

Also at the first meeting as General Director of Petrovietnam, Mr. Le Ngoc Son hoped and believed that with the spirit of "One team - One goal", the entire Group would unite and together successfully carry out the assigned tasks.

Source