PetroVietnam eager to capitalise on 2019

PetroVietnam eager to capitalise on 2019

Leveraging sound development orientations plus effective and drastic management measures, PetroVietnam reached its full-year plan of all business targets, some of them up to three months earlier than scheduled. Along with this, its total industrial production value based on 2010 fixed price touched VND519.8 trillion ($22.6 billion), up 4.3 per cent compared to the projection and 6.3 per cent more than 2018.

The group’s total revenue came to VND736.2 trillion ($32 billion), a jump of 20 per cent over the projection and up 17 per cent on-year. Total pre-tax consolidated profits reached VND43.8 trillion ($1.9 billion), soaring 40 per cent over the projection while budget contribution surpassed the projection by 23 per cent to VND20.5 trillion ($891 million).

PetroVietnam has completed the group’s business restructuring plan for the 2019-2025 period, and is waiting for approval to serve as a basis for the implementation of further tasks and duties.

PetroVietnam was given a standalone credit profile of BB+ by Fitch Ratings, one of the world’s top three credit rating agencies, attesting to the group’s operation efficiency and providing firm fundament for the group to raise capital in the international market.

“Fairly comprehensive business results of the oil and gas sector, and PetroVietnam in particular, have contributed to Vietnam’s successful implementation of 2019 socio-economic development targets, helping to enhance the country’s economic potential, national energy security, and protect Vietnam’s sea and island sovereignty,” said Deputy Prime Minister Trinh Dinh Dung at PetroVietnam’s recent conference reviewing the group’s development and setting tasks for 2020 earlier this month.

PetroVietnam Transportation Corporation (PVTrans), one of the group’s key members, was also making good on its 2019 development plan with robust performance.

According to CEO Pham Viet Anh, 2019 marked a breakthrough in PVTrans’ development, with the company’s diverse production and business targets setting new records. The company posted around VND8.1 trillion ($352 million) in consolidated revenue, a 47 per cent jump over projections, and its pre-tax profits reached VND1.03 trillion ($45 million), more than double the estimated figure. Significantly, PVTrans has managed stable growth averaging 17 per cent a year for the last eight consecutive years.

Also last year, PVTrans for the second time in a row was championed in Vietnam’s Top 50 listed companies by Forbes. The company was ranked 170th in the Top 500 largest Vietnamese businesses and 90th in the Top 500 Vietnamese businesses with best profit figures by Vietnam Report JSC.

Besides the parent company, member companies such as the Pacific Petroleum Transportation JSC and Nhat Viet Transportation JSC have also been placed on the latter list for many consecutive years.

This year, PVTrans is set to continue augmenting its fleet with new ships, simultaneously boosting service quality, striving to spread the message about the constantly improved Vietnamese oil and gas sector in the international market, and promoting the strong potential of Vietnam’s marine economy.

Another key member of PetroVietnam, PV Gas, also registered impressive growth in 2019. According to the company’s general director Duong Manh Son, PV Gas surpassed all production targets from 6-44 per cent through producing and supplying over 9.95 billion cubic metres of gas, over 1.75 million tonnes of liquefied petroleum gas (LPG), and 65,700 tonnes of condensate.

The company also exceeded all business targets by around 20-56 per cent, counting VND76.55 trillion ($3.3 billion) in revenues, VND13.94 trillion ($606 million) in pre-tax profits, and paying VND5.24 trillion ($227 million) in budget contribution, with most of the targets reaching the goal two to three months prior to the schedule.

PV Gas is among PetroVietnam’s top performers in terms of financial metrics with the ratio of post-tax profit over equity capital reaching 23 per cent, and over charter capital reaching 58 per cent; ensuring stable gas supply for the production of nearly 30 per cent of power output, 70 per cent of fertiliser output, and satisfying more than 60 per cent of Vietnam’s total LPG market share.

In its 2020 investment strategy report from private firm Viet Dragon Securities Corporation, analysts gave positive assessments about the oil and gas sector’s development perspective for the next 12 months. The assessments have leveraged PetroVietnam’s effective structure and the possibility that the oil price will remain high after the OPEC and its allies curtailed oil output from 1.2 million to 1.7 million barrels a day until March.