Despite facing the double crisis of falling oil prices and the COVID-19 pandemic, PetroVietnam achieved positive business results in the first seven months with an after-tax profit of more than VND10 trillion ($434.8 million).
In the first seven months of this year, while many other international oil groups were struggling with serious downturns in profit or even losses, thanks to the implementation of many synchronous solutions, PetroVietnam still gained an after-tax profit of VND10 trillion ($434.8 million) and contributed more than VND38 trillion ($1.65 billion) to the state budget.
In the second quarter, oil prices were lower than in the first quarter. On average, oil cost $40.2 per barrel on average in July and $44 per barrel for the first seven months, while at the beginning of the year the company's financial plan worked with an expected $60 per barrel.
“The price is only 73 per cent of our expectations but PetroVietnam’s financial results are still positive," said Le Manh Hung, PetroVietnam’s general director.
|Le Manh Hung, PetroVietnam’s general director speaking at the meeting to review the first seven months. Photo: PetroVietnam |
The company ascribed its success to optimal oil and gas exploitation while minimising economic losses from the falling oil price.
“All of the group’s subsidiaries and affiliates have maintained the normal pace of production and business. Especially, production units like VietsovPetro Joint Venture, PetroVietnam Exploration Production Corporation (PVEP), Rusvietpetro, Bien Dong Petroleum Operating Company, PVGas, Binh Son Refining and Petrochemical JSC (BSR), PetroVietnam Fertiliser and Chemical JSC (PVFCCo), and PetroVietnam Camau Fertiliser JSC (PVCFC) have completed and exceeded output targets.
In addition, the cash flows of the group and its affiliates ensured stable liquidity, helping to keep production and business activities at a good pace. The group’s investments have also been keeping up with the schedule.
During the seven-month period, PetroVietnam recorded a total output of 12.5 million of oil equivalents, beating the plan by 5.3 per cent and completing 61.5 per cent of the whole-year goal.
Electricity production in this period reached 12.75 billion kWh, equal to 99.3 per cent of the seven-month plan and 59 per cent of the yearly plan.
A highlight of PetroVietnam's investment in July was a large oil and gas reserve found at Block 114 (Ken Bau field), located in Song Hong Basin, offshore Vietnam’s northern continental shelf, about 65km from Quang Tri province.
|A large oil and gas reserve was found at Block 114 (Ken Bau field), located in Song Hong Basin. Photo: PetroVietnam |
This new find will create opportunities for attracting investment into the field in different fields, from exploitation, processing, and power and gas industry to services.
Moreover, also in this July, PetroVietnam had activated the first machine unit and a 500KV distribution facility of Song Hau 1 Thermal Power Plant Project in Hau Giang province.