On July 7, in Hanoi, Vietnam Oil and Gas Group (Petrovietnam) held periodic online briefings with leaders of member units to evaluate business and production results in the first 6 months. year, deploy work tasks in the second half of 2021.
Petrovietnam Chairman of the Board of Directors Hoang Quoc Vuong, President Le Manh Hung and member of the Standing Party Committee, the Board of Directors, Vice President, heads of the Divisions/Administration Office of the Group, member units attended at the bridges across the country.
Achieving dual goals, comprehensive and positive results
In the first 6 months of 2021, with the promotion of large-scale vaccination campaigns and the implementation of economic stimulus packages, the world’s major economies such as the US, China and the EU have taken strong economic recovery steps, lead the global economy. However, the world economy is still facing many risks, especially financial issues, public debt, inflation, and the recovery has a clear divergence depending on the vaccination progress. Meanwhile, the vaccine against COVID-19 has not yet reached the emerging economies, developing and less developed countries, and new variants of this virus have emerged.
Domestically, the first six months of the year experienced two outbreaks of COVID-19. In which, the fourth wave of COVID-19 epidemic is currently complicated, spreading to many provinces and cities throughout the country, especially in Ho Chi Minh City, the southern provinces where many units, oil and gas works and a number of industrial zones are located, the most dynamic economic areas in the country, greatly affecting production and business activities, consumption of products and goods… of the economy. Economic growth in the second half of 2021 is forecasted to depend greatly on the control of the COVID-19 situation.
In that context, with good control of safety and epidemic work, promotion of experience and efficiency in governance, taking advantage of opportunities from the recovery of the world economy and positive oil prices, Petrovietnam has closely followed the plan, market developments, over-fulfilled most of the assigned key targets. In which, oil production has completed the 6-month plan right in May 2021. Generally, in the first 6 months of the year, the output of crude oil and condensate exceeded the plan by 15%, contributing to the completion of the 6-month oil production plan of 9.68 million tons. The production of petroleum and fertilizers also exceeded the assigned plan.
The financial targets have been over-fulfilled and have a high growth compared to the same period of 2020. Specifically, in the first 6 months of 2021, the Group’s total accumulated revenue reached 299.3 trillion dong, exceeding 20% of 6-month plan, an increase of 22% over the same period in 2020; The Group’s contribution to the state budget reached 45.2 trillion dong, exceeding 42% of the 6-month plan, an increase of 33% over the same period in 2020; Consolidated pre-tax profit of the Group reached 21.3 trillion dong, exceeding 165% of the 6-month plan, an increase of more than 3 times compared to the same period in 2020.
The above financial indicators show that the Group’s pre-tax profit is much more positive than the increase in oil price (more than 3 times higher than the increase in oil price); Specifically, the average price of crude oil in the first 6 months of 2021 was 66.8 USD/barrel, exceeding 48% of the plan price, while the Group’s consolidated pre-tax profit in the first 6 months exceeded 165% of the plan. Return on equity (ROE) in the first 6 months is estimated at 4.6%, belonging to the group of oil and gas companies with good ROE in the world. It can be said that achieving this very positive result depends not only on favorable factors from the positive trend of oil prices but also on the fact that governance has been paid special attention by the Group's Board of Directors. Simultaneously, there is the decisiveness in the management and direction from the Group to the member units and each specific field. This result makes a great contribution to the country’s socio-economic development. Along with that, the Group’s strategic products such as gasoline, oil, gas, electricity, fertilizers… have not only brought revenue to the state budget but also provided essential products, contributed to stabilizing the market, especially in the context of complicated epidemic developments.
Petrovietnam has made great efforts in investment, gradually solved and removed obstacles in difficult projects, achieved some remarkable progress; Promoted the construction of value chains in order to enhance coordination, share and make the most of advantages and resources of units in the Group to improve overall operational efficiency (by the end of June 2021, the Group has developed 19 linked chains). Optimizing and reducing costs have been actively implemented. Total cost reduction is estimated at 1,691.6 billion dong, equal 62% of the reduction plan of 2021, making an important contribution to the Group’s overall business results.
The prevention of the COVID-19 epidemic has been thoroughly, synchronously and effectively implemented throughout the Group. All units in the Group have maintained stable production and business activities, controlled inventories, and prevention of COVID-19 epidemic has been strictly and thoroughly implemented, ensuring absolute safety, without interrupting production and business activities. Actively responding to the Government's call, so far, Petrovietnam has contributed more than 500 billion dong to the COVID-19 Vaccine Fund and supported epidemic prevention and control in localities throughout the country. Petrovietnam has also safely implemented vaccination against COVID-19 for nearly 10,000 employees.
Solidarity, continued efforts in performing tasks in the last 6 months of the year
Delivering direction speech, Petrovietnam Chairman of the Board of Directors Hoang Quoc Vuong acknowledged the efforts of all units under the Group in the first 6 months of the year, with many units over-fulfilling the plan. Recognizing many challenges ahead, especially the COVID-19 pandemic in the country is very complicated with unpredictable oil prices, the Chairman suggested that the units continue promoting the results achieved, make efforts to complete the whole year plan. “In the current difficult period, more than ever, units need to unite, especially units in the value chain, need to create favorable conditions and support each other to complete the assigned plan” emphasized Mr. Hoang Quoc Vuong.
Summarizing the meeting, Petrovietnam President and CEO Le Manh Hung assessed the Group’s production and business results in the first 6 months of the year, in the context of many difficulties and challenges due to the impact of the COVID-19 epidemic, as well as difficulties in employment, consumption market, sharply-increased raw material costs... with the great efforts of the whole Group and many effective solutions, Petrovietnam has comprehensively over-fulfilled the assigned plans, especially in terms of high growth financial targets, expected to recover soon compared to the period before the COVID-19 epidemic.
In order to continue to successfully complete the tasks of the last 6 months and the whole year 2021, Mr. Le Manh Hung directed a number of key tasks including: Continue to update and strengthen forecasting on the macroeconomic situation, market to identify risks, update solutions in management, flexibly operate production and business activities; Synchronously deploy solutions to control the COVID-19 epidemic, promote coordination, find vaccine sources to inject for employees throughout the Group for the sake of worker safety, production and business safety; Ensure the balance between oil and gas output to fulfill the most important target, i.e. the Group’s oil and gas production; Promote market expansion of gas, refining and petrochemical products, as well as other products; Continue to improve governance, promote the removal of obstacles at the State management agencies for the Group’s production and business activities, in parallel with strengthening grasping and solving difficulties for units; Continue to optimize investment, optimize production costs, reduce operating costs; Realize the chain of links within the Group and enhance mutual support between units.