President and CEO of Vietnam Oil and Gas Group Le Manh Hung chairs the online meeting on May 7, 2021 (Photo: Petrovietnam)

On May 7, President and CEO of Vietnam Oil and Gas Group Le Manh Hung chaired a regular online meeting with member units to review the business results in the first four months and work out tasks for the rest of the year.

In the past 4 months, the global economy recovered but clearly differentiated. Many countries plunged into the worst economic recession in history due to the COVID-19 pandemic. The recent emergency of the COVID-19 pandemic threatens to quell hopes of economic recovery in many countries. Goldman Sachs forecasts the growth of the global leading economies are about to slow down. The OPEC Joint Technical Committee (JTC) warned that the worsening pandemic situation in India, Brazil and Japan could negatively affect the world economic growth and change the recovery trend of crude oil demand.

In this context, Petrovietnam made every effort to closely follow its set targets and plans, was consistent in management, operation and effectively took measures to deal with market fluctuations as well as the developments of the COVID-19 pandemic, and achieved its targets.

In the first 4 months of 2021, Petrovietnam’s consolidated revenue was estimated at 124.42 trillion dong, exceeding 21% of the 4-month plan and equal to 35% of the yearly plan, up 47% over the same period. The Group’s total contribution to the State budget in 4 months was estimated at 27.5 trillion dong, higher than the 4-month plan as well as the same period last year. In particular, the Group's profit target was very high compared to the plan and grew strongly over the same period. Accumulated 4-month pre-tax profit was estimated at 15.42 trillion dong, 2.5 times higher than the 4-month plan and equal to 94% of the year plan, 2.46 times higher than the same period, much higher than the increase in oil prices.

In early 2021, Petrovietnam's investment projects continued positive changes thanks to the close attention and drastic direction of the Group’s leaders and member units. The Group’s management of portfolio investment produced good results. The evaluation of projects and investment opportunities in the Group was carried out in a more effective and systematic manner towards the goal of portfolio management in the Group, helping Petrovietnam develop sustainably in accordance with its strategic orientation.

While many global oil and gas companies faced difficulties and suffered losses, Petrovietnam basically fulfilled its plans and targets, making an important contribution to the State budget (over 83 trillion dong). Petrovietnam continued to increase its reserves to ensure sustainable development in the future.

Petrovietnam’s member units since early 2021 have strictly followed Petrovietnam leaders’ guidelines on measures to respond to the COVID-19 pandemic and the oil prices. No COVID-19 infection case has so far been reported in the Group.

Currently, the pandemic continues raging the world, including Southeast Asian countries, especially Cambodia, Thailand and Laos which share the border with Vietnam. Vietnam has recorded new COVID-19 community transmission cases since late April and the situation is worsening. The Group has prepared different scenarios and considered fighting COVID-19 a top task to ensure safety and uninterrupted production and businesses.

At the meeting with member units, President and CEO of Vietnam Oil and Gas Group Le Manh Hung and the Board of Management analyzed, evaluated and resolved pending issues. The leaders asked for safe exploration and exploitation activities, and measures to raise output, while increasing reserves, reviewing cost, and strengthening management to reduce production cost and improve exploitation efficiency. Fertilizer businesses were urged take advantage of market opportunities and promote gas consumption possibility.

Petrovietnam President and CEO Le Manh Hung noted that the whole group’s stable and efficient operation in the first 4 months this year deserves recognition, making important contributions to the country’s socioeconomic development. 30% of achievements came from favorable oil prices and the remaining 70% was thanks to the Group’s efforts to boost production and improve management efficiency.

To capitalize on achievements and deal with COVID-19 complexities, Petrovietnam President and CEO Le Manh Hung asked member units to analyze risks, implement response measures, review business targets and tasks in the second quarter and strive to settle backlogs of the first quarter.

The Group will continue to closely watch macro factors, the exchange rate and inflation to assess its financial resources for production and businesses, focusing on ensuring safe and efficient production, making full use of market opportunities, reducing cost, optimizing expenditure, analyzing cost and revenue fluctuations to raise operation efficiency, and continuing to realize the link chain in the Group.

Following Petrovietnam’s commendable performance in the first 4 months of the year, President and CEO Le Manh Hung expressed his hope that all member units will work harder to maintain the current pace of production and business to accomplish tasks.