PetroVietnam's oil beats target

PetroVietnam sets a target to exploit more than 6.49 million tonnes of oil by the end of this year. - Photo vneconomy

This output is 7.6 per cent higher than its initial yearly target of 25.64 million tonnes set at the beginning of the year.

The energy group reported its nine-month production output at 21.1 million tonnes of oil equivalent, surpassing the quarterly target by 10.2 per cent growth and equaling 82.3 per cent of the yearly goal. Crude oil comprised 13.03 million tonnes of total output, up 8.1 per cent year-on-year.

Industrial production value increased 11 per cent over the nine months of last year.

Production of electricity, fertilizer and petroleum in the first nine months was also above targets by between 2.4 and 15.8 per cent.

These numbers are considered impressive given the gloomy outlook of the global oil market.

However, the group's nine-month revenues reached only VND327.4 trillion (US$14.7 billion), accounting for 86 per cent of the quarterly projection and just 64 per cent of the yearly target.

The group attributed the disappointing earnings to strong declines in global oil prices. The nine-month average oil price was around $42.7 per barrel, only 71.2 per cent of the group's estimate of $60 per barrel for the year. This price was also 25 per cent lower than that of the same period of last year.

Therefore, the contribution to the State budget was VND64 trillion, equivalent to 81 per cent of the nine-month estimate and 61 per cent of the goal for the whole year.

PetroVietnam expects to earn VND514.5 trillion in total revenues and collection to the State budget of VND104.2 trillion for the year.

The group's earnings are forecast to continue decreasing this year if the world crude oil price remains low. PetroVietnam's revenues and profits have been on a consistent decrease since 2013 due to losses in global oil.