Responding effectively to fluctuations, profits increased by 30%

Petrovietnam: Effectively responding to fluctuations, profits increase by 30%

Vietnam Oil and Gas Group (Petrovietnam) continues to maintain impressive growth momentum in most production and business indicators. Notably, the consolidated profit of the whole Group in the first 7 months is estimated at VND 29,600 billion, exceeding the plan by 75%.

The world geopolitical situation continues to evolve in a complex and unpredictable manner, greatly affecting the global economy, causing fluctuations in the oil and gas product market... greatly affecting Petrovietnam's operations.

However, with a consistent viewpoint and motto in managing fluctuations, by the end of July 2024, Petrovietnam still maintained impressive growth momentum in most 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.

Successfully launched the BK-23 platform foundation.

In July 2024, Petrovietnam's key production targets mostly exceeded the monthly plan by 6.3-19.9%.

Specifically, 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%; nitrogenous fertilizer production reached 163,200 tons, exceeding the monthly plan by 6.3%; gasoline production (excluding NSRP) reached 652,600 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.

Thai Binh 2 Thermal Power Plant officially joins the electricity market from August 2024.

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.

Specifically, 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, up 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 gas and electricity mobilization).

Nitrogen production reached 1.11 million tons, exceeding the 7-month plan by 6.3%, up 7% over the same period; Gasoline 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 194,200 tons, exceeding the 7-month plan by 4.4%, up 15.2% over the same period in 2023.

Thanks to good management, most production targets were completed beyond the plan, 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 completed exceeding 31 - 75% of the 7-month plan and 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; 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.

Petrovietnam Deputy General Director Do Chi Thanh presented gifts to support and encourage people in Son La who suffered heavy losses due to floods.

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, support educational 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.

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 adverse factors, and at the same time took advantage of opportunities to compensate for risks.

According to Chairman of the Board of Directors of Petrovietnam Le Manh Hung, the difficulties and challenges that the Group faced in July and the first 7 months of 2024 were very large. 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, and thereby maintain 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.

At the same time, promote market expansion, find new drivers for growth; seek solutions to promote investment, especially implementing key projects; manage finance and capital, ensure resources to implement development strategies.

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 expected, Petrovietnam will closely monitor and forecast the market situation to propose solutions for production and business management, product distribution, and reasonable inventory to limit the impacts from 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, and develop draft laws related to the Group's operations.

To promote the Group's production and business activities in the last months of the year, the General Director of Petrovietnam also 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, 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 goals, and contribute to the socio-economic development of the country.

Source: https://baodautu.vn/petrovietnam-ung-pho-hieu-qua-voi-bien-dong-loi-nhuan-tang-30-d223024.html