Petrovietnam exceeds planned targets

06:00 | 25/05/2021 Companies

(VEN) - Thanks to persistent efforts to remove bottlenecks in production and corporate governance, the Vietnam National Oil and Gas Group (Petrovietnam) has exceeded its plans in most of the assigned targets in the first four months of 2021, recording strong growth compared to the same period last year.

President and CEO of PetroVietnam Le Manh Hung inspects maintenance of the Phu My Fertilizer Plant

Stability and development

In the context of favorable oil prices, Petrovietnam pushed oil production to offset low gas output due to low market demand. Oil production in April and in the first four months of 2021 exceeded 7 percent and 1 percent, respectively, compared with plans. During the four-month period, the group’s consolidated revenue is estimated at VND124.42 trillion, exceeding the plan by 21 percent, equaling 35 percent of the year’s plan and up 47 percent over the same period last year.

Total payment of the group to the state budget in the period was estimated at VND27.5 trillion, higher than the four-month and year-on-year plans.

The group's profit also far exceeded plans, with the four-month accumulated pre-tax profit estimated at VND15.42 trillion, 2.5 times higher than the four-month plan and equal to 94 percent of the annual plan.

Petrovietnam Ha Tinh Power Company

Fitch Ratings recently upgraded Petrovietnam's rating outlook from "Stable" to "Positive" and rated the group's Standalone Credit Profile (SCP) rating at "BB+", and Long-term Issuer Default Ratings - IDR) at “BB”. This positive assessment reflects recognition of Petrovietnam's achievements in responding to the double impact of the Covid-19 pandemic and the oil price decline in 2020.

Whereas oil and gas companies around the world are facing difficulties and losses, Petrovietnam has completed and exceeded its planned tasks and targets, contributing significantly to the budget (over VND83 trillion), and increasing reserves to ensure its sustainable development in the future.

Stable, safe production and business

At online briefings for member units on production and business results in the first four months, President and CEO of PetroVietnam Le Manh Hung and the Board of Directors also gave directions for the rest of the year. These include ensuring safety in oil exploitation, raising exploitation output and reserves, strengthening management to reduce production costs, and increasing exploitation efficiency. Fertilizer enterprises were urged to take advantage of favorable market opportunities to boost production and increase gas consumption.

Hung affirmed that in the first four months, the group has ensured the safety, stability and smoothness of production and business activities, making important contributions to Vietnam’s socio-economic development. He attributed 30 percent of the significant results to favorable oil prices, and 70 percent to the group’s efforts to improve business efficiency.

In order to keep maintain the results, the group’s leader directed its units to assess the epidemic’s continued risks and variants in order to implement responsive solutions and orient administration of production and business activities; continue to monitor and evaluate macro-economic factors such as exchange rates and inflation to assess the group's financial resources for production and business activities; concentrate on ensuring stable, safe and efficient production, ready to take advantage of market opportunities; seriously optimize costs, analyze cost and revenue fluctuations to improve operational efficiency.

President and CEO of PetroVietnam Le Manh Hung expressed his hope that the highly positive results in the

first four months of the year would be maintained.

Ngan Vu