Petrovietnam fulfills set targets of 2023 ahead of schedule

Chia sẻ
(VOVWORLD) - Despite several challenges in production and business with a significant downturn in the consumer market and petroleum product prices in November, Vietnam Oil and Gas Group (Petrovietnam) resiliently achieved its production and business targets ahead of schedule. This consistent performance established a positive trajectory for realizing ambitious growth goals in 2023 thus making substantial contributions to the national economy.
Petrovietnam fulfills set targets of 2023 ahead of schedule - ảnh 1Petrovietnam fulfills set targets of 2023 ahead of schedule

At the regular meeting between Petrovietnam General Director Le Manh Hung and the Group's member unit leaders on December 5, delegates agreed macro economy and the market was much more difficult than forecast, directly affecting Petrovietnam's production and business activities, reflected in two important indicators of the Group: a 14.6% decline in electricity mobilization and a corresponding 8.4% decrease in gas mobilization.

Furthermore, the energy market is experiencing adverse developments, with a pronounced downturn in world crude oil prices. November witnessed the fifth consecutive week of decreasing oil prices since mid-October, resulting in an average decline of approximately 18% in oil prices over the first 11 months compared to the same period in 2022.

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In November, the prices of petroleum products experienced a decline ranging from 1% to 9% compared to the October averages. When juxtaposed with the same period in 2022, all products, excluding FO oil, witnessed a reduction in prices ranging from 2% to 12%. Notably, the prices recorded in November this year for all products were lower than the overall average for the entirety of 2022.

Urea prices exhibited a substantial drop, with an accumulated average decrease exceeding 22% since the beginning of the year. This decline in prices is attributed to both low demand in the domestic market and subdued export activity, contributing to challenging consumption conditions. Particularly in November, market demand reached unusually low levels, leading to elevated inventories of both oil refining products and fertilizers.

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Despite facing substantial negative impacts from objective and market factors, Petrovietnam has responded proactively with a comprehensive and vigorous governance approach. Implementing specific solutions swiftly from the outset of the year, the company has demonstrated synchronicity and effectiveness in its operations. Furthermore, ongoing efforts to enhance institutions and policies have contributed to a gradual improvement in Petrovietnam's overall operational landscape.

In November, Petrovietnam's main production targets were all completed and exceeded 2.7-72.7% against the plan. Thanks to solutions to maintain output and bolster reserves, crude oil exploitation output in November reached 0.86 million tons, surpassing the monthly plan 9.8% and reflecting a 1.7% increase compared to October (with a domestic crude oil exploitation increase of 2.7%).

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Additionally, there were notable increases in various production sectors: electricity from PV Power rose 4%, NPK increased a substantial 95.1%, and polypropylene saw a notable increase of 7.2%, compared to October figures. Furthermore, when compared to the same period in 2022, there were remarkable growth indicators across several areas, including a 4.1% increase in petrol production, a 4.6% increase in urea production, a significant 3.2 times increase in NPK production, a 3.6% increase in LPG production, and a noteworthy 12% increase in polypropylene production.

Over the course of 11 months, except for NPK targets achieving 76%, gas production reaching 95.5%, and electricity production reaching 97.6%, which were largely influenced by objective factors, the Group's remaining production targets exceeded the plan by a substantial margin, ranging from 2.3% to 28%.

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The financial performance of the Group continues to surpass expectations with remarkable figures. In November alone, the Group’s total revenue soared to 89 trillion VND, surpassing 59% of the monthly plan and registering a 2% increase compared to October. The Group's contribution to the state budget (excluding contribution of Nghi Son refinery petroleum) in November reached an impressive 13.1 trillion VND, exceeding 84% of the monthly plan.

Notably, after 11 months, the Group has completed its financial targets for the entire year 2023, ahead of schedule 1.5-5 months and surpassing the yearly plan by an impressive 7-81%. The accumulated total revenue for the Group over the 11 months is estimated at 833.6 trillion VND, surpassing 34% of the 11-month plan and exceeding 23% of the yearly plan. The Group’s state budget contribution was estimated at 134 trillion VND, exceeding 86% of the 11-month plan and surpassing the yearly plan by an impressive 71%.

It is forecast that by the end of 2023, several indicators will experience substantial growth compared to 2022. Investment indicators are expected to show notable improvements, with a projected 24% growth over the same period last year. This positive outlook extends to various sectors, including electricity and petroleum production, Ca Mau urea, Ca Mau NPK, LPG, polypropylene, among others.

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The Group has also actively strengthened its operation in various aspects. It continued to enhance digital transformation and ERP implementation, made persistent effort to reinvigorate corporate culture, guided by the objective of "Regenerating culture to consolidate and create momentum for business re-creation." In November, five enterprises of Petrovietnam received the certificate of "Enterprise meeting Vietnamese business culture standards," of the National Council. As of now, Petrovietnam and its 11 member units have received this certification among 54 certified enterprises nationwide.

The Group has gained remarkable achievements in ensuring social security. As of the end of November 2023, Petrovietnam had spent 217.5 billion VND on social security efforts. The world’s leading credit rating organization, Fitch Ratings, has recently re-evaluated Petrovietnam's credit rating, revealing more positive indicators compared to the previous assessment.

Alongside the notable accomplishments, Petrovietnam has also identified significant challenges that have emerged and are anticipated to persist into 2024. These challenges include the difficulty of sustaining mining output amid a substantial decline in natural output across several key mines. Additionally, there are challenges related to gas and electricity consumption, marked by low mobilization and a continuous sharp decline, compounded by weak market demand.

Petrovietnam fulfills set targets of 2023 ahead of schedule - ảnh 7Five enterprises of Petrovietnam received the certificate of "Enterprise meeting Vietnamese business culture standards," of the National Council. 

The dynamics affecting oil prices pose another formidable challenge. The limited driving force behind the increase in oil prices has altered the effectiveness of OPEC+ production cuts compared to previous periods. Non-OPEC supply is on the rise, and the global economic growth is sluggish, further complicating the landscape.

Following the comprehensive analysis, assessment, and guidance provided for each agency during the briefing process, and responding to directives from the Chairman of the Group's Board of Directors, Petrovietnam General Director Le Manh Hung concluded the meeting by asking the entire Group to persist in their efforts, capitalizing on market opportunities to achieve ambitious goals, particularly increasing revenues to expand operations and create conditions for transition, restructuring of business models, enhancing competitiveness and operational efficiency.

The General Director of Petrovietnam also pointed out a number of specific tasks in December and the coming time: Actively coordinating with relevant agencies to submit amendments to Resolution 41 of the Politburo; Collaborating with the Ministry of Industry and Trade to develop the Oil and Gas Program in the East Sea.; Focusing on maximizing oil exploitation output and finding solutions and motivations for maintaining output and increasing reserves, particularly projects scheduled to commence operation in 2024, with a focus on key projects such as Lot B, O Mon 3, O Mon 4; Strengthening the assessment and forecasting of supply and demand, inventory, and production capacity; Leveraging opportunities to increase the production of petrochemical products; Reviewing, evaluating, and forecasting gas and electricity mobilization, and promoting solutions for the consumer market; Reviewing and optimizing investment activities, balancing capital, and managing investment cash flow; Evaluating the market, developing production and business plans along with financial plans to enhance capital management and cash flow.

Based on the goals and plans for 2024 approved by the Group's Board of Directors,a units are tasked with designing solutions to achieve these assigned goals through thorough reflection on the achieved results and challenges of 2023 to improve management and operational strategies for 2024.