The meeting was attended by Petrovietnam Chairman of the Board of Directors Hoang Quoc Vuong; together with the leaders of the Group and member units.
Development of the world economic and political situation in the first quarter of 2021 shows that the recovery trend of the world economy in 2021 is not yet clear, there are still many risks of instability from geopolitical issues, trade conflicts and unpredictable developments from the COVID-19 epidemic.
There are many potential negative influences on the world crude oil market. In the most recent meeting on 1st April 2021, OPEC+ decided to increase the production output by 350,000 bpd from May-June and 441,000 bpd from July, and extend the time limit to offset the overproduction volume (about 90 million barrels) to the end of September, leading to an adjustment in supply in the near future. Meanwhile, on 31st March, OPEC+ Technical Committee revised down the outlook for world crude oil demand growth from 5.9 million to 5.6 million bpd, sending more negative signals about crude oil market in 2021.
Proactively updating, forecasting the situation, drastically operating and proposing reasonable solutions, in March and the first quarter of 2021, Petrovietnam endeavored to keep up with the targets and business plans. Working aspects such as ensuring oil and gas security and safety; advising on building mechanisms, policies and amending the new Petroleum Law; building corporate culture, social security... all complied with the program and plan. All units in the Group maintained a stable business pace and ensured absolute safety.
The Group’s consolidated financial targets exceeded the set plan, the revenue and profit were very positive, of which the State budget contribution was estimated at 19,023 billion dong, fulfilling 118% of the quarter target and increases 3% over the same period. The whole Group had 17/22 profitable business units, of which 12/17 units grew over the same period. To achieve the above results, the units drastically optimized the value and reduced costs with the total amount estimated at 2,835 billion dong, significantly contributing to the Group's business results in the first quarter.
Addressing at the meeting, Petrovietnam Chairman of the Board of Directors Hoang Quoc Vuong praised and highly appreciated the close direction of the Board of Management, together with the efforts of the units in implementing the business tasks of the first quarter, when all units had good business results. Commenting that there were still many difficulties and uncertainties in remaining months of 2021, Chairman Hoang Quoc Vuong instructed units to closely monitor the market situation for proper management and administration, optimal business efficiency of the whole Group. In particular, the units should continue to promote restructuring; reviewing and optimizing costs to reduce costs and improve operational efficiency; promote market advantages in dominant fields; efforts to maintain production output and increase reserves, ensure sustainable development.
Concluding the meeting, Petrovietnam President and CEO Le Manh Hung summarized and evaluated the results achieved by the whole Group in the first quarter, analyzed the risks that could affect the Group’s business activities in the coming time. In order to continue promoting the achieved results and well perform the tasks of April as well as the following quarters, Mr. Le Manh Hung requested to continue optimizing the administration work; actively analyze, update and evaluate risks and opportunities of the market, as well as from the macro situation to update administration, management solutions, successfully complete the set plan; focus on planning management solutions, actively practice cost reduction; ready to welcome market opportunities in the coming time. President and CEO Le Manh Hung emphasized that the Group and its member units would continue to expand market share, promote portfolio management and investment association, strengthen coordination among units as well as actively deploy horizontal links throughout the Group.