PetroVietnam reports rosy performance leveraging effective management

The seven-month review online meeting at PetroVietnam headquarters

This assessment was delivered at PetroVietnam’s online briefing on August 8 featuring leaders of all member units to provide updates on pandemic response. In addition, leaders discussed business results from the past seven months and the implementation of tasks in the rest of the year.

PetroVietnam chairman Hoang Quoc Vuong, CEO Le Manh Hung, leaders of departments and divisions of the group and member units attended the online meeting from 12 locations across the country.

In July and the first seven months of 2021, the world economy was on a path to recovery. The scarcity of input materials (iron and steel products) however, has been driving up prices, adding to the shortage of labour. In addition, the appearance of the Delta coronavirus variant has also become a significant threat to the global economy.

In Vietnam, social distancing measures in Hanoi, Ho Chi Minh City, and 18 other localities under Directive No.16/CT-TTg has resulted in widespread difficulties. Figures from the General Statistics Office show that nearly 79,700 firms have shut down to wait for or have completed dissolution procedures. This is 22.5 per cent higher than last year.

Engineers at PVFCCo, a member of PetroVietnam, monitoring operations at Phu My Fertiliser Plant

In this context, PetroVietnam has managed to stay on track to its full-year plan, with financial targets even exceeding the plan and growing on-year. Total revenue reached VND347.8 trillion(15.1 billion), up 25 per cent on-year and surpassing the seven-month plan by 18 per cent. This has ticked off 71 per cent of the full-year plan.

Meanwhile, state budget contributions grew 32 per cent on-year to reach VND50.9 trillion ($2.2 billion), exceeding the plan for the period by as much as 38 per cent and reaching 82 per cent of the full-year target.

The group's consolidated pre-tax profit reached VND27.1 trillion ($1.18 billion), a whopping 286 per cent of the seven-month plan and more than tripling against the corresponding period of last year. In particular, nine members have completed their full-year consolidated after-tax profit targets, including large-scale players like the parent company PetroVietnam, Binh Son Refinery (BSR), PVPower, and PVOil.

The group also reduced costs by a total of VND1.91 trillion ($83 million), achieving 70.1 per cent of its 2021 plan.

Regular checks to ensure safe operations at PetroVietnam's member units

To safeguard the health of employees, PetroVietnam has been constantly working on accelerating vaccination and has secured the first shots to as much as 70 per cent of its staff at several units, including BSR, Vietsovpetro, PV GAS, PVCFC, and others.

Nevertheless, with the pandemic forecast to greatly affect the group in the coming time, Vuong suggested urged the group to continue strict pandemic prevention measures and accelerate vaccination for employees.

PetroVietnam chairman Hoang Quoc Vuong making the opening remarks

Vuong noted, “During this difficult time, we must realise PetroVietnam’s culture based on Solidarity – Discipline – Creativity – Efficiency to surmount difficulties and optimise operations.”

Summing up the briefing, Hung pointed out key trends to keep an eye on, including the rapidly shrinking demand for crude oil, gasoline, oil, gas, and electricity in the market.

PetroVietnam CEO Le Manh Hung making the closing remarks

Hung directed the leaders of subsidiaries to review risks in the implementation of their production and business plans and adjust them to market fluctuations. He also requested them to continue monitoring market fluctuations to come up with suitable response measures; speeding up the implementation of projects; actively and effectively utilising the group's value chains; promoting digital transformation, optimising costs; strengthening risk management, particularly for inherent risks in product consumption and inventory, among others.

Hung closed by congratulating the whole group for its efforts to secure very positive results in the first seven months amid stiff market conditions. He expressed hope that member units would continue producing great achievements and accomplish the tasks for the rest of the year while keeping employees safe.