With the pre-tax profit of VND50.6 trillion ($2.2 billion), PetroVietnam overcame Samsung Thai Nguyen complex to become the most profitable enterprise in 2018.
|Offshore drilling platform of PetroVietnam at Bach Ho field |
PetroVietnam has published its audited consolidated financial statement for 2018. Accordingly, the group acquired a pre-tax profit of VND50.6 trillion ($2.2 billion), up 7.5 per cent compared to the figure of VND47 trillion ($2.04 billion) in 2017 and broke the three-year winning streak of Samsung Thai Nguyen complex.
PetroVietnam, Viettel, and two complexes of Samsung Vietnam – namely Samsung Thai Nguyen and Samsung Bac Ninh – are the four enterprises having the largest profit in Vietnam.
Besides, the country's biggest oil exploration and production corporation ranked first among the 500 largest enterprises in Vietnam (according to Vietnam Report). Profit 500 is one of the most prestigious charts honouring enterprises generating the largest profit with listees tauted as having the potential to become the backbone of Vietnam’s economic growth and building a reputation for Vietnamese enterprises on the local and international stages.
Additionally, Fitch Ratings assigned PetroVietnam’s first-time long-term foreign-currency issuer default rating (IDR) at 'BB' with a positive outlook.
The agency also assigned PVN a senior unsecured rating of 'BB' and standalone credit profile (SCP) at 'bb+', reflecting the company's high degree of integration, diversification, and conservative financial profile.
This positive credit rating helps PetroVietnam improve its ability to mobilise capital in the international market and diversify the mobilised capital sources for investment projects even as the government is restricting guaranteed loans.
This proves PetroVietnam’s strong financial status and business performance as well as its positive business prospects, lending confidence to domestic and foreign investors, financial institutions, and strategic partners, a key morale booster for the corporation's restructuring.
PetroVietnam has accelerated its drive for equitisation and restructuring. In 2018, PetroVietnam completed the IPOs of PV Power, PVOil, and Binh Son Refinery. The state owned VND89 trillion ($3.87 billion) in all of these three enterprises. After the successful IPOs, PetroVietnam collected VND16.5 trillion (717.39 million) in proceeds.
Furthermore, PetroVietnam built a synchronised infrastructure system for the gas sector that connects units from exploration to processing.
In the first eight months of this year, even though the global gas industry has faced massive difficulties, PetroVietnam still managed to produce positive business results. Notably, as of August, the total revenue of the group was VND489.5 trillion ($21.28 billion) in the period, up 19 per cent compared to the initial plan and equaling 80 per cent of the expectations for the whole year. The group paid VND68.9 trillion ($3 billion) to the state budget, up 14 per cent compared to the eight-month plan.
The group is focusing on managing human and financial resources, while simultaneously investing in expanding operations to new sectors and markets to drive efficiencies in manufacturing and business operations. Besides, PetroVietnam has implemented synchronised solutions to control and deal with risks and completed its enterprise management model. Last but not least, the group has been improving the working environment to earn the trust of employees and encourage them for longer-term commitment as well as to improve their capacity and creativity.