In February, the world economic situation showed more positive signs, the global purchasing managers' index (PMI) rose to 50 points, showing a recovery in production, as well as that of major economies, especially China; inflation showed signs of slowing down; demand recovered, consumption increased; forecasts on world economic growth as well as growth of major economies were more positive, but pressure from concerns of recession and economic, geopolitic instability was still weighing on, inflation was still at a high level.
Online meeting bridge points
Domestically, the economic situation in February was better than in January, but in the first two months of the year, the economic situation tended to decrease compared to the same period last year. For the Oil and Gas industry, oil price fluctuations continued to be complicated, prices were lower than in the same period last year; Fertilizer market dropped sharply with high inventory.
In that context, Petrovietnam continued to adhere to the management goals, drastically directed all aspects of production, business and investment activities right from the beginning of the month and the beginning of the year; focused on removing and overcoming difficulties, made the most of the motivations, opportunities, fiscal space for growth, made the best efforts to carry out production and business tasks; together with volatility management, risk control and management.
Overview of the meeting
In the first 2 months of the year, maintaining oil and gas production was extremely difficult because in the first quarter of the year, the weather was not favorable for operation, and there were no additional new wells while the decline in natural output continued to be strong because many large oil and gas fields were at the end of their life. Petrovietnam has focused on solutions to improve management and operation efficiency, reduce costs, apply technical solutions, improve oil recovery coefficient… to limit the decline in natural output, continue making efforts to follow up and promote investment projects in exploration and production. As a result, in the first 2 months of the year, crude oil production reached 1.7 million tons, 12.2% higher than the plan. Production of gas, electricity, fertilizer, petroleum products... remained at a high level. In which, electricity production reached 3.63 billion kWh, 13.4% higher than the plan, up 45.6% over the same period; petroleum production (excluding NSRP products) reached 1.13 million tons, exceeding 11.9% of the plan, up 9.5% over the same period; gas production reached 1.20 billion m3, exceeded 11.1% of the plan, fertilizer production reached 306.7 thousand tons, exceeded 10.3% of the plan, equivalent to the performance of the same period.
Petrovietnam President and CEO Le Manh Hung inspects production and business activities
Petrovietnam’s financial targets not only exceeded the plan but also grew, although oil prices and crude oil production decreased over the same period. Specifically, in the first 2 months of 2023, the Group’s total revenue was estimated at 125.6 trillion dong, exceeding 24% of the plan, equivalent to the same period; contribution to the State budget of the whole Group (excluding NSRP) was estimated at 19.6 trillion dong, exceeding 45% of the plan, up 2% over the same period.
After listening to reports, exchanges and discussions of the Group’s Vice Presidents, leaders of Divisions and units, Petrovietnam President and CEO Le Manh Hung highly appreciated the efforts of the whole Group, and gave specific instructions on production and business activities of each unit, each field of activity, on the results of production and business activities in the first 2 months of the whole Group. President and CEO Le Manh Hung emphasized the achieved and unachieved aspects compared to the set management goals.
Offshore oil and gas production project
Although the Group’s 2-month production and business results exceeded the plan, it is necessary to focus on controlling risks to achieve the highest results according to management goals to ensure growth and sustainable development.
Inspecting the maintenance of equipment for Unit 1 of Vung Ang 1 Thermal Power Plant
Directing the key tasks in March, President and CEO Le Manh Hung suggested the units research and carefully evaluate macro and market information to review and update the management and administration, actively implement the plan of the unit, strive to achieve the targets according to the decision on assignment of tasks of the Group. The Group’s President and CEO also directed a number of specific tasks such as: Continue to focus on implementing solutions to maintain the production output; optimize efficiency and capacity at factories in accordance with technical conditions and increase efficiency; urgently implement solutions, assess the market to reduce fertilizer inventories, optimize production materials and business activities; increase the proportion of using services in the industry, especially in the field of exploration and production; review the model, manage the portfolio, remove obstacles and promote the investment of the Group; well prepare the work for the upcoming season of the general meeting of shareholders; review the tasks in the meetings to urge the implementation according to the schedule…
Representatives of Petrovietnam and the Marubeni - WTO consortium sign framework agreement on Block B gas sale
Along with production and business tasks, Petrovietnam President and CEO Le Manh Hung emphasized a number of key tasks that need to be focused and implemented throughout 2023, such as: Promote solutions to accelerate Digital Transformation throughout the Group, using tools and digital technology to transform business models, with special emphasis on building a “digital culture” and transforming electronic offices into “digital offices”; Synchronously implement the energy shift project, focus on promoting the assessment and completion of the Group’s energy transition strategy, as well as the project on technology mastery and implementation of offshore energy projects; Improve the quality, realize and develop Petrovietnam ecosystem, especially the chain link, strengthen the coordination and mutual support among the units in the Group, actively implement the existing chains and turn potential opportunities into efficient chains in the Group’s ecosystem.