Thi Vai LNG warehouse will be inaugurated in October 2023. (Photo: Petrovietnam)

The first 9 months of 2023 saw the global economy in general, and large economies in particular, facing many challenges and risks, amid unsustainable economic recovery. The Global Purchasing Managers Index (PMI) constantly stood at below 50 points, indicating a manufacturing sector in decline, weak market demand, and financial instability with many risks. In Vietnam, most considered the target GDP growth hard to reach. With the oil and gas industry, despite positive signs after an increase in oil prices in Q3, prices remained low compared to the same period last year while supply-demand and the market suffered from low market demand, affecting crude oil output and causing superfluous gas inventories. 

Despite challenges, Petrovietnam stuck to its goals for the year, striving month-by-month, quarter-by-quarter to reach its growth targets, thus making up for the difficulties facing the economy, contributing to GDP growth, assisting the Government, ministries, and the people to reach Vietnam’s 2023 economic goals while making national energy security a top priority. 

Petrovietnam maintains its pace in production and business activities. (Photo: Petrovietnam)

Monthly meetings between the group’s chief executive director and heads of division were maintained to update on each division’s operations, discuss, provide directions and solutions, and organize to realize set goals. In addition, Petrovietnam’s CEO Le Manh Hung involved himself with every division, every project, lots, and mines to review, motivate, support each division, and encourage teamwork to reach the big goals of 2023, with the motto “to manage volatility, expand the scale, accelerate digital transformation, shift models, improve productivity, reinvent business”. 

Petrovietnam achieved optimistic results in its production and business activities and remained a highlight amid a difficult economy, thanks to the group’s strong leadership and management, timely responses to difficulties to make use of opportunities while limiting the effects of negative externalities. 

In the first 9 months of 2023, Petrovietnam ensured a high oil output both in Vietnam and overseas. Its factories and subsidiaries maintained safe and stable operations with high output exceeding targets while ensuring a maximum gas supply for power plants and non-electrical energy consumption. Outputs for energy, petrol, oil, fertilizers, and other key products maintained a high level and exceeded set targets, contributing to other industries and national energy security. 

From January to September, Petrovietnam’s oil production reached an output of 7.85 million tons, exceeding its 9-month target by 14.1% and accounting for 84.6% of the 2023 target. Oil production nationwide reached 6.51 million tons, exceeding the 9-month target by 16.8% and accounting for 86.5% of the 2023 target. Overseas, oil production reached 1.34 million tons, exceeding the 9-month target by 2.7% and accounting for 76.2% of the 2023 target. 

In the same period, gas production reached 5.76 billion cubic meters, exceeding the 9-month target by 11% and accounting for 72.1% of the group’s 7.94 billion cubic meter target set for 2023. 

CEO Le Manh Hung inspects at projects’ construction sites. (Photo: Petrovietnam)

Power generation and supply in the period reached 17.55 billion kWh, exceeding the 9-month target by 1.2%, accounting for 73.1% of the 2023 target and increased by 45.6% compared to the same period last year, which stood at 12.06 billion kWh. 

Fertilizer production in the period reached 1.3 million tons, exceeding the 9-month target by 5.2%, accounting for 81% of the 2023 target, and reduced by 4.8% compared to the same period last year. 

By boosting production and business, Petrovietnam has exceeded its financial targets, a positive result considering the drop in oil prices and outputs of several products due to external factors. Gross revenue in the 9-month period reached 26.48 billion USD (643.2 trillion VND), exceeding the target for the period by 26% and accounting for 95% of the 2023 target. State budget contributions in the 9-month period reached 4.2 billion USD (102.4 trillion VND), exceeding the 3.2 billion USD target for the whole year, which was completed 5 months ahead of time, by 31%. Earnings before tax (EBT) in the period is estimated at 42.5 trillion VND, exceeding the 2023 target by 22%. 

Investment is a key focus for Petrovietnam. The group is determined to eliminate bottlenecks and move key projects forward, creating positive changes, such as: Completing investment and operating at high capacity of Thai Binh 2 Thermal Power Plant from April 27th 2023, contributing to Vietnam’s power supply amid recent power shortage; excellent results from reservoir testing at the Dai Hung Nam-4X drilling well, with about 6,350 barrels of oil/ day and 4.5 million cubic meter of gas/ day, meeting the requirements of commercial development and putting into operation as soon as possible. Petrovietnam is preparing to inaugurate the one-million-ton Thi Vai LNG warehouse (the first and biggest LNG warehouse in Vietnam). Nhon Trach 3 and 4 power plant projects, Block B projects, O Mon III and O Mon IV power plants remain the group’s top priorities for execution. 

As of September 30th, 2023, Petrovietnam’s consolidated total asset is estimated at 41.19 billion USD (998 trillion VND), tripling that of 2019 with a brand strength rating of AA-. The group is also listed among the top 10 most valuable Vietnamese brands in 2023 by Brand Finance and leads the Top 500 most profitable enterprises of Vietnam ((PROFIT 500 - Vietnam Report).

These achievements affirm Petrovietnam’s ambitions and position as Vietnam’s leading energy corporation who plays a key role in ensuring national energy security, worthy of the trust from the State and Government.