The information was announced by Petrovietnam President and CEO Le Manh Hung during the regular meeting in May 2023 with leaders of the Group’s member units on 8th May. 

Online bridge points

In April and the first 4 months of the year, the world macroeconomic picture showed many difficulties and challenges: inflation continued to be high, growth slowed down, the risk of financial system recession increased, consumer demand dropped… The global PMI in April continued to stay below 50 points, at 49.6 points. Major export markets of our country such as the US, China, EU, and ASEAN faced difficulties. In April, only the US had an increase in PMI while China and EU had sharp decrease. Domestically, the economy continued to face many difficulties, the growth of macroeconomic indicators were all low compared to the same period last year. Along with the adverse impact of the world and domestic situation, the decline in oil and gas prices had a great impact on the production and business activities of Petrovietnam. Although OPEC+ announced an additional cut in oil production of about 1.16 million barrels per day (bpd) from May, bringing the total OPEC+ cuts to 3.66 million bpd, equivalent to 3.7% of global demand, the oil prices did not increase but tended to decrease since the end of April when the fear of recession continued to exist in major economies, inflation continued to increase, interest rates were likely to continue to be raised by central banks. The average selling price of crude oil of Petrovietnam in April decreased by more than 17.1 USD/barrel over the same period, equivalent to a decrease of nearly 16%; natural gas prices in the market continued to remain low in the context of oversupply and weak demand; although the electricity price was adjusted up by 3%, it was not significant compared to the increase in input material prices; Fertilizer prices were low, especially single fertilizers, and consumer demand was weak. 

Prime Minister Pham Minh Chinh visits and encourages oil and gas workers at Thai Binh 2 Thermal Power Plant

In that context, Petrovietnam drastically implemented solutions to minimize damage from adverse factors, especially the price factor, took advantage of opportunities to increase revenue and profit. As a result, in April, Petrovietnam’s production and business activities were relatively stable and better than in March. 

Specifically, in terms of output, oil and gas production in April continued to achieve more positive results than in the first months of 2023. In which, domestic crude oil production in April 2023 was equivalent to the level of the same period in 2022; overseas oil production reached the level of the same period in 2022. Dung Quat Oil Refinery continued to maintain a high capacity (106-114% of designed capacity), making an important contribution to ensuring energy security, stabilizing the petroleum market of the country. Generally in 4 months, all main production targets of the Group were over-fulfilled: Crude oil production exceeded 15.3%; gas production exceeded 20.3%; fertilizer production exceeded 12.8%; petroleum production exceeded 13%; electricity production exceeded 4.6% compared to the 4-month plan. 

Petrovietnam’s financial indicators in the first 4 months of the year also exceeded the plan and were more positive than the decline in oil prices. In which, the Group’s total revenue was estimated at 262.2 trillion dong, exceeding 21% of the plan; The Group’s state budget contribution (excluding NSRP) was estimated at 36.6 trillion dong, exceeding 16% of the plan; Consolidated pre-tax profit reached 18.2 trillion dong, exceeding 77% of the plan and equaling 52% of the plan in 2023. 

Prime Minister Pham Minh Chinh and leaders of the National Assembly, ministries, branches, Thai Binh province, Petrovietnam cut the ribbon to inaugurate Thai Binh 2 Thermal Power Plant

Especially on 27th April 2023, Petrovietnam held the Inauguration Ceremony of Thai Binh 2 Thermal Power Plant. After completing and putting into operation, Thai Binh 2 Thermal Power Plant will supply about 7 – 7.2 billion kWh to the national grid annually; bringing the total capacity of the Group’s operated power plants to 6,605 MW, accounting for about 8.5% of the total installed capacity of the country.

One of the bright spots in the first 4 months was the Group’s service units had stable growth in production and business activities and were expected to continue maintaining positive results in the following months of 2023. 

Phu My Fertilizer Plant completed the overall maintenance to ensure safety, quality and schedule

At the meeting, the units reported on the production and business activities in the first 4 months of the year, the plan for May and the following months of 2023, along with proposals and recommendations. Petrovietnam President and CEO Le Manh Hung and the Vice Presidents in charge of activities, Divisions/ relevant units discussed and proposed solutions and tasks for each unit/ field of activities of the Group. 

Employees of Ca Mau Fertilizer Plant

Delivering direction speech, Petrovietnam Chairman of the Board of Directors Hoang Quoc Vuong emphasized three key tasks to be promoted in May and the following months of 2023, including: Continue to ensure conditions and solutions to realize the target, the task of maintaining production output; Ensure the safety, stability, and high availability of power plants, take advantage of market opportunities when the power supply is very tense to increase production and business efficiency, and at the same time provide maximum power to serve the country’s socio-economic development requirements; Focus on promoting construction investment, settling investment procedures, especially focusing on key projects such as Block B gas project chain, Nhon Trach 3 & 4 power plant…

Construction port of PTSC

Concluding the meeting, Petrovietnam President and CEO Le Manh Hung highly appreciated the results achieved in the first 4 months of the year with the great efforts of the whole system in the difficult business environment and conditions.

Dung Quat Oil Refinery

Determining to continue steadfastly the goal of maintaining stability and growth set out at the beginning of the year, in the context of macroeconomic difficulties, potential economic and financial recession, unfavorable price movements of oil and petroleum products, Petrovietnam President and CEO Le Manh Hung directed specific tasks for each unit/field of activities of the Group. At the same time, the President and CEO proposed to focus on a number of common solutions such as: Promote the completion of relevant mechanisms and policies (Draft Bidding Law (amended), Draft Decree to replace Decree 124/2017/ND-CP on offshore investment in the Oil and Gas sector, Draft Decree guiding the implementation of the Petroleum Law); Overcome the decline in output in the manufacturing sectors; Overcoming the decline in revenue in units and fields that account for a large proportion in the Group’s revenue structure; Promote assessment of service resources, develop key products and services; Continue to promote portfolio/investment project management, long-term scientific research program, database building, digital transformation... make every effort in the remaining months to accomplish the management goals set out by the Group.