On September 9, Fitch Ratings certified Vietnam’s state-owned oil and gas giant PetroVietnam as having a standalone credit rating at BB+, with a long-term foreign currency issuer default rating (IDR) of BB with "positive outlook", and senior unsecured rating of BB. This is the third consecutive year Fitch Ratings evaluated PetroVietnam’s standalone credit rating at BB+.
|PetroVietnam's labourers are working diligently to maintain production tempo despite COVID-19 |
The global ratings agency also expects PetroVietnam’s earnings before interest, tax, depreciation, and amortisation (EBITDA) to be doubled in 2021 to surpass VND45 trillion ($1.95 billion), leveraging the group’s sound financial profile with marked improvements across its key business fields as well as high liquidity.
The Fitch experts assumed that they did not notice any difficulties in mobilising capital of PetroVietnam as one of most influential state-owned enterprises in the country.
PetroVietnam has succeeded in maintaining the positive ratings even as Vietnam has been suffering from the devastating impacts of the fourth wave of COVID-19.
The group has taken suitable measures to deal with pandemic complexities and the fluctuation of crude oil prices, alongside adopting flexible corporate governance.
|PetroVietnam has remained resilient in the face of adversity |
Simultaneously, the group has been doing a smart job of forecasting and fluctuation management, connections in the group's value chainvertically and horizontally, helping to maximise the value of each member unit and expand the market.
In the first eight months of 2021, PetroVietnam surpassed almost all set business targets. For instance, its crude oil exploitation output exceeded the eight-month projection by 12.7 per cent, while the production of fertiliser, petroleum items and liquefied petroleum gas (LPG) surpassed plans by 2-11 per cent. The financial indexes have shown on-year growth, helping to solidify PetroVietnam’s credit profile.
The Fitch rating also reflects the group’s integration, diversification, and conservative financial profile. The rating attests to PetroVietnam’s role as Vietnam’s biggest petroleum producer, being integrated vertically with upstream, midstream, and downstream activities, empowered by stable revenue streams from gas and power distribution.