Petrovietnam business report in the first month of 2020

10:10 | 07/02/2020 Companies

Petrovietnam has fulfilled and over-fulfilled the plan right from the first days, the first month of 2020. Total revenue in January 2020 of Petrovietnam exceeds 16% of the plan. Petrovietnam’s contribution to the State budget in January 2020 exceeds 17% of the plan, enhancing the forecast and proactively responding to market developments in front of negative impacts of nCoV epidemic.

2020 is the fifth year that Petrovietnam has implemented the Vietnam Oil and Gas Industry Development Strategy to 2025 and orientations to 2035. Successful implementation of the 2020 plan contributes to the successful achievement of objectives and tasks of the 5-year plan (2016-2020), together with the whole country overcoming difficulties and challenges to accelerate economic development in parallel with maintaining macroeconomic stability, continuing to strongly implement economic restructuring is associated with renewing the growth model, improving productivity, quality, efficiency and competitiveness, ensuring social security, social welfare and improving people's lives. Being aware of this, Petrovietnam is determined to fulfill and over-fulfill the plan right from the first days and the first month of the year.

In January 2020, although it is the Lunar New Year with long holiday, all activities of the Group have been maintained and taken place normally. With great effort and concentration, Petrovietnam has over-fulfilled the production and financial targets. Before, during and after the Lunar New Year, security and safety on oil and gas projects have been guaranteed; oil and gas contractors and units have implemented seriously the direction of the Group. The first day after Tet holiday, the Group asked all units to focus and embark on the mission to determine to successfully complete the plan for 2020.

However, it is forecasted that the situation in the country and the world in February as well as in the coming time will face many difficulties because of uncertain risks from the market, epidemics, and natural disasters... along with unpredictably fluctuating world oil prices. These factors adversely affect the business and production plans of the Group in particular as well as the domestic economy and the world in general. In this situation, Petrovietnam President and CEO has instructed the units to strengthen the forecast and proactively respond to market developments in front of the negative impact of the disease caused by nCoV, minimize damage as well as take advantage of opportunities to plan production and market access in a timely and reasonable manner.

Production and business results in January 2020

* Production and business targets

- The oil and gas production in January is implemented as planned, exceeding 8.5% of the month plan.

- Fertilizer production of the Group in January is 147.3 thousand tons, exceeding 2.5% of the month plan.

- Petrol and oil production of the whole Group in January is 1.201 million tons, exceeding 5.3% of the month plan.

* Financial targets of the whole Group

- Total revenue of the Group in January is estimated at 66.3 trillion dong, exceeding 16.2% of the month plan.

- The whole Group’s contribution to the State budget in January is 8.3 trillion dong, exceeding 17.1% of the month plan.

* Outstanding activities

- Petrovietnam and its subsidiaries have organized activities to celebrate the Party and welcome Spring, enjoy the Lunar New Year in all regions of the country joyfully, warmly, safely, healthily, not affect to production and business activities.

- Jointly organize the Art Program “Forever Believing in the Party” and “The Party is my life” on the occasion of the 90th Establishment Anniversary of the Communist Party of Vietnam (3rd February 1930 – 3rd February 2020), welcome new Spring 2020.

- Support localities with tens of billion dongs to visit and give gifts to the families having merit in the revolution, poor and disadvantaged households during the Lunar New Year. Particularly, the amount from the Headquarter is 5,250 billion dong.

- Organize the program “Tet Reunion - Spring of Love of Petrovietnam 2020”, spend 54 billion dong to sponsor for Tet of Petrovietnam’s laborers and retired workers in difficult circumstances.

- Check production and send New Year’s greeting to cadres, engineers and laborers working on the oil and gas rigs and projects.

- Direct all units of Petrovietnam to strengthen safety, health and environmental measures and instructions for oil and gas workers to proactively prevent the spread and outbreak of diseases caused by nCoV.

- The President and CEO of the Group instructs all the subsidiaries to strengthen the forecast and proactively respond to market developments in front of negative impacts of nCoV epidemic.

- Facing complicated situation due to nCoV epidemic, Vietnam Petrochemical and Fiber Joint Stock Company (VNPOLY) has promptly produced and sold 5 tons of raw materials (DTY) to the market for producing medical masks; Vietnam Petroleum Institute (VPI) has successfully produced antibacterial dry hand sanitizer (germicidal gel, VPI-gel). The product has been tested and recognized by Pasteur T Institute for its ability to quickly and effectively destroy up to 99.99% of common microorganisms.

Some urgent solutions

In order to take proactive measures to cope with negative impacts, minimize losses from epidemics caused by nCoV, particularly the decline of market purchasing power, in order to complete production and business plans of February and the following months of 2020, the Holding Company - PetroVietnam and its subsidiaries focus on:

- Urgently, proactively analyze, evaluate and forecast the impact of epidemics caused by nCoV on the implementation of business and production targets; devise measures to minimize damages as well as take advantage of opportunities arising.

- Reduce costs to maximize profits, specifically: management cost, production cost, selling cost... Review the list of strategic backup supplies, and have solutions to sharing backup supplies between factories with the same technology and the manufacturer to minimize inventory supplies and increase capital using efficiency.

- Optimize updates of technical norms for production operation, consider raising capacity and output on the principle of ensuring safety, stability and sustainable efficiency.

- Propose short-term and medium-term solutions (regarding production plans, products, costs, investments) to cope with negative impacts and seize opportunities due to the impact of epidemics caused by nCoV. Coordinate focal points, business partners, control market risks, optimize product consumption; especially, it is necessary to take initiative in approaching the market that has not been penetrated in order to promote the competitive advantage in a timely manner.

- Actively share information and strengthen cooperation between the units in the Group, the industry and the country.