On 4th December, Petrovietnam President and CEO Le Manh Hung chaired an online meeting with leaders of member units on the business results of November and the first 11 months of 2020, and preparing to develop plan for 2021.
In the context that the global oil and gas industry continues to be heavily influenced by the “double crisis” due to the Covid-19 epidemic, the oil price has maintained a deep decline - on average, in 11 months, it was 43.8 USD/ barrel, much lower than the planned price of 60 USD/ barrel. At the end of the third quarter of 2020, major oil corporations such as Shell, BP, Chevron... all recorded losses up to tens of billions of dollars. BP (UK) reported a huge loss of 16.8 billion USD in the second quarter and continued to record a net loss of 450 million USD in the third quarter; Chevron, the US oil giant, reported a loss of 8.3 billion USD in the second quarter and a loss of 207 million USD in the third quarter; Shell (Netherlands) recorded a loss of 18.15 billion USD in the first 6 months of 2020. In the same situation, a series of large oil and gas companies in the world recorded negative business results such as: ConocoPhillips lost 1.5 billion USD, Total lost 8.3 billion USD and ENI lost 7.35 billion EUR... Among three major economic regions, i.e. US, Eurozone and China, only China saw growth, the US and Europe had very negative signs.
In such difficult context, with the drastic direction of leaders as well as efforts and perseverance to implement synchronous response solutions of the whole Group; Petrovietnam’s production, business and investment activities continued to be maintained stably. Generally, in 11 months of 2020, the targets on crude oil, fertilizer and petroleum production were basically fulfilled and over-fulfilled. The Group’s cumulative revenue in 11 months was estimated at 508.9 trillion dong, the whole Group’s contribution to the State budget was estimated at 66 trillion dong. Petrovietnam seriously and effectively implemented the work of cost reduction; the total value of reduction in the whole Group was 8,745 billion dong, equivalent to 93.9% of the year plan, of which the reduction value of the costs that made up the production and business costs was 3,776 billion dong (equivalent to 113% of the year’s saving target of 3,338 billion dong) and the optimal reduction value in the construction investment and equipment procurement was 4,969 billion dong (equivalent to 83.2% of the whole year target of 5,971 billion dong).
In particular, in November 2020, 17 member units under the Group achieved profitable business results and by the end of November 2020, 10 units under the Group not only fulfilled the target ahead of schedule but also over-fulfilled the profit target of the year from 105% to 935%.
At the meeting, on the basis of reports on production and business results of units, Petrovietnam leader gave specific instructions for each unit as well as each section/ field of activity to promptly solve difficulties and problems, in order to improve operational capacity, competitiveness, well prepare for key tasks in 2021, as well as ensure sustainable development in the coming years.
Giving conclusion speech, President and CEO Le Manh Hung highly appreciated the efforts of the units in 2020 and suggested that the units continue efforts in the remaining month of the year to ensure the completion of the assigned targets and tasks of the whole Group.
2021 is forecasted to remain a difficult year for the world oil and gas market, despite hope of Covid-19 vaccine to be put into use soon. In preparation for the production and business plan in 2021, Petrovietnam President and CEO directed the units together with the Group to focus on market forecasting, political and economic issues in 2021 to make response scenarios and appropriate management directions; focus on analyzing solutions to avoid and limit the momentum of decline, find solutions to growth again; carefully analyze the investment and portfolio management; focus on implementing the tasks in the project on responding to energy movement. In addition, President and CEO Le Manh Hung also requested to focus on controlling the horizontal link between units to form a solid chain of links throughout the Group, in order to develop internal forces, improve competitiveness; at the same time, conduct detailed and overall assessment of the group’s assets and resources as a basis for the Group’s leaders to consider appropriate re-allocation of resources in order to promote the value of use, create a basis for the group’s activities in the next period.