PetroVietnam attains stellar 2018 results

PM Nguyen Xuan Phuc visits the Nghi Son refinery and petrochemical complex in Thanh Hoa province

According to the latest figures, Vietnam Oil and Gas Group (PetroVietnam) has almost reached its target oil exploitation volume for the year.

In December, the group completed its annual plan with capacity of 13.23 million tonnes of oil and 9.6 billion cubic metres of gas, officially reaching its 2018 target with two weeks to spare.

PetroVietnam saw oil and gas production output of 22.1 million tonnes in the first 11 months of 2018, surpassing its target by 5.4 per cent and fulfilling 96.8 per cent of its yearly plan.

The group’s oil production in the period reached 12.8 million tonnes, exceeding the target by 5.6 per cent and reaching 97 per cent for the whole year. Of those, oil exploitation in Vietnam was 11.03 million tonnes, surpassing 6.9 per cent of the plan. In gas, PetroVietnam reached 9.26 billion cubic metres of gas in the first 11 months, surpassing 5.2 per cent of the plan. PetroVietnam also enjoyed high production in other products, including 19 billion kilowatt-hours (kWh) of electricity, 1.48 million tonnes of nitrogenous fertiliser, and 8.53 million tonnes of petroleum.

Between January and November, thanks to high output and higher oil prices than expected, the group’s total revenue hit VND542.34 trillion ($23.58 billion), exceeding the target by 16.8 per cent and surpassing the yearly plan by 2.2 per cent. It contributed VND108.12 trillion ($4.7 billion) to the state budget in the first 11 months, 46.7 per cent higher than its target for the whole year.

On exploring and exploiting petroleum products in 2018, PetroVietnam appraised 15 wells and exploited 17 others, locating two new fields at Tho Tinh Nam in Block 05-3/11, and Meo Trang Dong in Block 09-1. The group expected to exploit 14 million tonnes of oil and more than 10 billion cubic metres of gas for the whole year of 2018.

According to PetroVietnam’s CEO Nguyen Vu Truong Son, the group faced difficulties on exploration and exploiting but overcame and completed its key targets. Many member companies of the group have already completed their goals for the whole year, with some affiliates and subsidiaries achieving their highest business results. PV Gas posted revenue and after-tax profit of VND66.3 trillion ($2.88 billion) and VND10.1 trillion ($439 million), surpassing its targets by 12 and 57 per cent, respectively.

Binh Son Refining and Petrochemical JSC (BSR), the operator of Vietnam’s first refinery, Dung Quat, surpassed targets by 33 per cent and 50 per cent in terms of revenue and after-tax profit to reach VND103.9 trillion ($4.5 billion) and VND4.9 trillion ($213 million), respectively.

PVTrans gained turnover of VND7.05 trillion ($306.52 million), surpassing 34 per cent of the annual plan and contributing to the state budget VND334 billion ($14.52 million), 54 per cent higher than planned.

Others achieved high results in 2018, including PetroVietnam Insurance Corporation (PVI) and PetroVietnam Ca Mau Fertilizer JSC (PVCFC).

PetroVietnam continues to modernise in line with implementing resolutions on efficiency and development

A year of highly appreciated awards

Along with achieving high business results over the year, 2018 also earned the group many accolades. PetroVietnam topped the Profit500 Ranking, which listed the 500 most profitable companies in Vietnam in 2018. The ranking, announced by Vietnam Report JSC in Hanoi on November 29, honours enterprises that are profitable, have potential to become key pillars of the Vietnamese economy, and contribute to the introduction of Vietnamese brands to the international business community.

In the Profit500 Ranking, companies with the highest average pre-tax profits are in telecommunications and IT. In the top five positions achieving the highest profitability in Vietnam, PetroVietnam and its subsidiary PV Gas was included. The three others were Viettel, Samsung Electronics Vietnam and Honda Vietnam.

PetroVietnam had also contributed five of the list of 97 Vietnamese companies ranked on the Vietnam Value 2018. PVCFC, PetroVietnam Fertilizer and Chemical Corporation, Petrosetco Asset Management, PetroVietnam Technical Services Corporation and PV Gas were those on the list.

Restructuring towards streamlined efficiency

PetroVietnam is in the midst of modernising activities in order to implement Resolution No.12 of the fifth plenum of the 12th Party Central Committee on restructuring, renovating and increasing efficiency of state-owned enterprises; Resolution No.18 on re-arranging the political system towards more efficiency; and to achieve targets set by the Politburo’s Resolution No.41-NQ/TW on Vietnam’s oil and gas development strategy up to 2025 with a vision to 2035.

The reduction of professional and office departments, and clearly defining responsibilities of each individual and division in the group, have overcome issues of irresponsibility which were causing delays in processing work. PetroVietnam has reduced special departments from 32 to 17, while the number of offices also decreased from 73 to 51. The number of leaders fell from 111 to 64, and the group expects to reduce this by 200 more to the year 2020 from consultant and assistance offices. Affiliates and subsidiaries are also implementing actively and efficiently. The group has assigned 14 high-ranking officials as leaders of these subsidiaries.

Over the next period, PetroVietnam aims to focus on completing internal management regulations; building personnel and conducting staff assessments; and completing the human resource management system according to international standards.

With the initial positive results in the restructuring in accordance with guidelines and orientations from the government, PetroVietnam is confident of the support from the Party, the state, ministries, central and local authorities. The group believes it will fulfill all tasks assigned not only for 2018 but also for the following years, making important contributions to successfully achieving national socioeconomic goals.