PetroVietnam outperforms 8-month period with continued focus on digital transformation

September 08, 2021 | 21:52
PetroVietnam is faring well so far this year, after boosting management efficiency through digital transformation efforts.
PetroVietnam outperforms 8-month period with continued focus on digital transformation
PetroVietnam's member units in diverse localities join the group's ninth CEO online meeting

CEO Le Manh Hung at state-owned oil and gas giant PetroVietnam chaired the group’s ninth CEO meeting in 2021 which took place on September 9 and brought together business leaders from across the group to review production and business results in the first eight months of 2021 while at the same time proactively planning the implementation of tasks for September and the rest of the year.

The event also featured Hoang Quoc Vuong, Party’s Committee Secretary and chairman of the Board of Members of PetroVietnam, other business executives, and heads of specialised departments and divisions of the group.

In August, PetroVietnam’s production and business activities were heavily affected by the complicated developments of the COVID-19 pandemic as well as social distancing in many localities across the country, particularly Vietnam’s major development centres such as Ho Chi Minh City and Binh Duong, which are the main operating areas and markets of the group.

PetroVietnam outperforms 8-month period with continued focus on digital transformation
The labourers at PV Drilling, a PetroVietnam member unit, applies stay-at-work scheme to maintain operation in pandemic time

In addition to a plug in purchasing power, weakening demand, disruption of supply chains, and difficulties in transportation and circulation due to social distancing have all cast a strong impact on the production and consumption of key products of the group such as petroleum, natural gas, liquefied petroleum gas, electricity, and fertiliser.

Leveraging its experience in pandemic containment from the outset of 2020, during the current fourth outbreak, PetroVietnam has effectively implemented prevention and control work along with a synchronous strategy of strictly controlling inputs, applying 5K, deploying appropriate production models, and effectively operating “stay-at-work” scheme to create buffer zones to ensure safe production.

In particular, PetroVietnam has effectively and timely implemented the vaccination strategy combined with healthcare, increasing the resistance of workers, helping the factories, drilling rigs, key works and projects across the group to manage safe and ceaseless operation.

Up to now, employees in the whole group have been basically vaccinated with one shot of COVID-19 vaccine. At the same time, efforts have been made to strengthen the group’s forecasting, fluctuation management, and value chain connection, helping to maximise the value of each unit as well as expanding the market.

PetroVietnam outperforms 8-month period with continued focus on digital transformation
The labourers at Nam Con Son processing plant carry out repair and maintenance work

In the first eight months of 2021, PetroVietnam's production and business targets basically met the set plan. Accordingly, crude oil exploitation exceeded 12.7 per cent of the 8-month plan while the production of items such as fertiliser, petroleum, and LPG all exceeded by 2-11 per cent. PetroVietnam's financial targets all mirrored growth compared to the same period last year.

Along with this, the group counted VND390.7 trillion($16.98 billion) in total revenue during the period, a 17 per cent jump over projection and up 24 per cent on-year.

PetroVietnam contributed VND56.9 trillion ($2.47 billion) to the state coffers, 38 per cent more than the projection and up 29 per cent on-year. Its consolidated pre-tax profit reached VND30.2 trillion ($1.3 billion), 177 per cent higher than the projection, up nearly 3-fold compared to the same period last year.

PetroVietnam’s 17 member units have been operating profitably in the first eight months of the year, of which 13 units showed growth compared to the same period in 2020.

The whole group has saved nearly VND2.046 trillion ($89 million), equal to 75 per cent of the annual plan, supporting COVID-19 prevention efforts with a total of VND733.8 billion ($31.9 million), VND554.9 billion ($24.1 million) of which was contributed to the national vaccine fund.

Through reviewing production and business activities in August and the first eight months, forecast update on the economy, market, and pandemic situation, the Board of Directors and the departments in charge of each field discussed and offered solutions to support associated member units in production, business, and investment activities in the rest of 2021 in a timely and efficient manner.

PetroVietnam outperforms 8-month period with continued focus on digital transformation
PetroVietnam CEO Le Manh Hung delivering the guiding remarks at the online review meeting

After exchanging ideas on tasks for the rest of 2021 from the meeting participants, CEO Le Manh Hung asked the group's leaders to quickly review and handle the tasks, conclusions, and direction of the leaders to ensure progress while at the same time striving to digitalise the task content to handle the assigned work effectively.

Hung noted that based on the forecasts of pandemic situation and market development in the forthcoming time, the parent company PetroVietnam and member units need to join efforts to craft diverse development scenarios to deploy tasks in the rest of 2021 and 2022, ready to take the lead and seize opportunities for economic rebound post-pandemic, and adapt to the energy transition trend on the global scale.

In the time ahead, CEO Le Manh Hung stressed the need to further coordinate with the health sector and localities to administer the second shot of vaccine for all employees, and units need to flexibly organise production and business activities in accordance with the Ministry of Health's requirements.

In addition, it is important to regularly update market developments, devise plans to effectively streamline the group’s value chains in order to best promote the resources of the whole system, in parallel to promoting seamless implementation of digital transformation and the application of digital platforms throughout the group.

Leveraging these 8-month upbeat achievements, CEO Le Manh Hung proposed the units to step up efforts to maintain stable and safe operation during the pandemic to complete the assigned targets and plans at the highest level. At the same time, joining efforts with the health sector and localities to push back the pandemic, returning the employees' and the people's lives to a “new normal”.

By Dinh Thuy

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