Petrovietnam achieves many output and financial targets early, realizing growth aspirations

(VOVWORLD) - Proudly celebrating 62 years of Vietnam Oil and Gas Industry Tradition Day (November 27). 

 As Vietnam's leading economic group and contributor to ensuring national energy security, Vietnam National Oil and Gas Group (Petrovietnam) has constantly made efforts, implemented solutions, and carry out assigned tasks in 2023 despite numerous challenges and obstacles to realize growth aspirations.

Petrovietnam achieves many output and financial targets early, realizing growth aspirations - ảnh 1Group leaders honor and reward specialized departments that contribute to the early achievement of output and financial targets in 2023

2023 continued to face lasting difficulties from the epidemic period, and there were "headwinds", including two prominent "headwinds" that have a strong impact on the macroeconomy. First, the slow growth of the world economy and major economies lead to fragmentation and had a huge impact on global demand. Second is inflation and interest rates, which a big "headwind" for Vietnam because Vietnam tried to maintain low inflation below 4% and low interest rates like today. On the contrary, economies around the world are using high interest rates to control inflation.

Not only Petrovietnam but also the oil and gas industry and the energy sector in general face great difficulties, which are energy shifts and instability in supply, demand, and prices. Prices of energy products decreased sharply compared to 2022, in which crude oil prices dropped 17-38%, fertilizer prices 25-30%, and petrochemical refining profit margins decreased 24-26%.

Particularly, the global supply chain is in trouble due to conflicts and embargoes around the world, greatly affecting all aspects of Petrovietnam's operations, including oil and gas search, exploration and exploitation, which is Petrovietnam's core area as drilling programs implementation is hindered by a shortage of input supply.

Petrovietnam achieves many output and financial targets early, realizing growth aspirations - ảnh 2Petrovietnam has maintained stable oil and gas exploitation activities in 2023, acheiveing targets early.

From the beginning of the year, the Group's General Director Le Manh Hung worked with each unit and each block to build production and business plans for 2023 and develop management and technical solutions, increase production, promote business, and limit adverse impacts.  Other tasks included maintaining volatility management, cost management, researching market fluctuation trends to deploy appropriate exploitation activities, especially capitalizing opportunities to increase cash flow and profits at times of favorable oil prices.

Through monthly CEO briefings, Petrovietnam General Director Le Manh Hung noted the Group's general agenda for 2023. They were "Volatility management; Scale expansion; Digital transformation acceleration; Paradigm shift; Productivity improvement; and Business reinvention”. This provided the basis for the Group and its member units to implement work and tasks in 2023 in a uniform, thorough, effective and quality manner.

The highlight of 2023 was that the Group and its units did not just stop at fulfilling plans but set a "more aspirational" goal with more challenges, requiring more consensus, joint forces and efforts for growth next year being higher than the previous year, and next month higher than the previous month.

Petrovietnam achieves many output and financial targets early, realizing growth aspirations - ảnh 3Oil and Gas workers unite for the Group's desire for sustainable growth

The Group has received close instructions from the Government and support from Central and local departments, ministries, and sectors and especially solidarity, self-reliance, and determination of all employees and workers of the Group. The Party Committee and the Board of Members agreed to promote the Group's Executive Board’s effectiveness and timely experience in managing changes, helping Petrovietnam achieve the targets ahead of the 2023 plan in major production and business indicators.

Specifically, Petrovietnam achieved financial targets 1.5 to 5 months ahead of the  full-year plan. In particular, the entire Group's budget payment completed the year's plan 5 months earlier (VND 78.3 trillion by July 30, 2023); Consolidated profit of the entire Group completed the yearly plan 4 months earlier (VND 34.7 trillion by August 31, 2023).

Total revenue of the entire Group fulfilled the whole year plan 2 months and 20 days ahead (677.7 trillion VND by October 10, 2023); Total consolidated revenue of the Group was completed 2 months and 18 days ahead of plan (VND 413.7 trillion by October 12, 2023); Total revenue of the Group's parent company surpassed the whole year plan 1 month and 15 days ahead (181.6 trillion VND by November 15, 2023); Parent company’s profit before tax was 4 months ahead the yearly plan (10.9 trillion VND by August 31, 2023).

Two major contributors to the Group's financial performance were oil and gas search, exploration, exploitation, oil and gas processing, storage and distribution of oil and gas products.

Petrovietnam's oil and gas search, exploration and exploitation sector has reaped a great success in 2023 when completing the target of increasing oil and gas reserves 1 month and 10 days in advance (12 million tons of oil equivalent/ yearly plan of 8-16 million tons of oil equivalent by November 20, 2023). Petrovietnam has made two new oil and gas discoveries at Block 16-2 (Hapa Vang-1X well) and at PM3-CAA (Bunga Lavatera-1 well). This result was very encouraging as for the first time in the past five years, the Group has made two new discoveries in a year.

Domestic oil exploitation output accomplished the full year plan 1 month and 18 days ahead when reaching 7.52 million tons by November 12, 2023. As of November 21, domestic oil exploitation output reached 7.71 million tons, exceeding 2.5% of the yearly plan, making an important contribution to the Group’s fulfilment of its oil exploitation plan (at home and abroad) for the whole year when it reached 9.29 million tons on November 21, which was 1 month and 9 days earlier than planned.

In the manufacturing sector, Petrovietnam's petroleum production output (excluding Nghi Son) fulfilled the whole year plan 2 months and 25 days ahead (5.53 million tons by October 6, 2023).

The Group's petroleum business output completed the full year plan 2 months ahead (9.06 million tons by October 30, 2023. PVOIL completed the full year plan of 3.3 million tons 4 months ahead; PVNDB is expected to fulfill the whole year plan of 5.76 million tons 20 days in ahead (December 10-11, 2023), contributing to maintaining petroleum supply. It affirms that Petrovietnam well performed its tasks assigned by the Government, the Prime Minister, and the Ministry of Industry and Trade as saying "In all situations, do not let any disruption or lack of petroleum supply to serve socio-economic development". Such achievements have shown effectiveness in Petrovietnam's management and operations as well as the efforts of contractors and units in implementing production and business activities.

Petrovietnam achieves many output and financial targets early, realizing growth aspirations - ảnh 4Petrovietnam ensures the supply of petroleum to serve socio-economic development in all situations. 

General Director of Petrovietnam Le Manh Hung said that the early achievement of output and financial targets is a source of motivation and encouragement for all officials, employees and workers. The  Group is steadfast to achieve its growth target and striving to achieve the highest planned targets in 2023. On this occasion, the Group's leaders rewarded, honored and encouraged specialized departments that contributed to the early achievement of output and financial targets in 2023.

During the remaining period of 2023, Petrovietnam will be consistent with the set goal of achieving the assigned targets and tasks at the highest level and striving for growth aspirations. The 2023 results will be the basis for Petrovietnam to work harder toward building and developing Petrovietnam to be the leading Energy Industry Group of the country and the region in line with the new development trend, embracing new motivations and new opportunities in the coming time.