On 7th May afternoon, Petrovietnam President and CEO Le Manh Hung chaired a regular online meeting at 8 bridge points nationwide with leaders of member units about the production and business results of the first 4 months, deploying tasks for May and the following months of 2021.

Stability and development

Developments in the world situation in the first 4 months of 2021 show that the global economy has recovered but clearly differentiated. The COVID-19 pandemic has brought many countries into the worst economic recession in history. The recent emergency of COVID-19 pandemic threatens to quell hopes of economic recovery in many countries. Goldman Sachs forecasts the global economic leaders are about to slow down. The OPEC Technical Committee (JTC) also warns that worsening epidemic developments in India, Brazil and Japan may negatively impact world economic growth and change the trend of crude oil demand recovery.

Maintenance of jacket for Moc Tinh rig

In such situation, Petrovietnam has made great efforts to keep up with its planned objectives and targets, drastically manage, administer and effectively implement solutions to respond to market fluctuations as well as developments of COVID epidemic situation, well completed the set targets.

In the context of favorable oil prices, Petrovietnam has had a policy of pushing oil production to offset low gas output due to poor market mobilization. Thus, the oil production in April exceeded 7% of the plan. Accumulated oil production in 4 months has exceeded 1% of the plan.

The Group’s financial results have exceeded the target. In the first 4 months of 2021, consolidated revenue has been estimated at 124.42 trillion dong, exceeding 21% of the 4-month plan and equivalent to 35% of the year plan, an increase of 47% over the same period; The total amount contributed to the State budget by the whole Group in 4 months of 2021 has been estimated at 27.5 trillion dong, higher than the 4-month plan as well as the same period.

In particular, the Group has over-fulfilled the profit target at high level and grown strongly over the same period. Accumulated pre-tax profit of 4 months has been estimated at 15.42 trillion dong, 2.5 times of the 4-month plan and equivalent to 94% of the year plan, 2.46 times higher than the same period, much higher than the increase in oil prices.

All the units under the Group have maintained a stable business and production pace, with 17/22 profitable units, and many units have high growth rates over the same period. The oil and gas security and safety, fire and explosion prevention on the oil and gas projects have been closely monitored and strictly implemented.

Phu My Fertilizer Plant employees wear masks during the overall maintenance process

In the first months of 2021, with the close attention and drastic direction from the leaders of the Group and member units, Petrovietnam’s investment projects continued to have positive changes. Portfolio management work of the Group and member units had some positive results

The evaluation of projects and investment opportunities in the Group has been carried out more systematically with higher quality than before, towards the goal of managing portfolio in the Group, helping Petrovietnam develop sustainably in the strategic direction.

On 7th April, Fitch Ratings - the world’s leading credit rating organization raised Petrovietnam’s rating outlook from “Stable” to “Positive” and PetroVietnam’s Standalone Independent Credit Profile (SCP) rating at “BB+”, and Issuer Default Rating (IDR) at “BB”. The positive assessment from Fitch Ratings shows recognition of PetroVietnam’s achievements in effectively responding to the double impact of COVID-19 pandemic and oil price decline in 2020. In the context that a series of oil and gas companies in the world face difficulties and losses, Petrovietnam has basically fulfilled and over-fulfilled the planned tasks and targets, making important contributions to the budget (over 83 trillion dong), concurrently continue increasing reserves to ensure sustainable development in the future.

Strengthen response to new developments of COVID-19 epidemic

Following the direction of Petrovietnam’s leaders on updating and completing solutions to cope with COVID-19 and crude oil price movements, from the beginning of 2021, the member units of the Group have seriously implemented. Thanks to that, COVID-19 epidemic prevention has been thoroughly and seriously and effectively implemented throughout the Group. Up to now, there has been no case of COVID-19 infection in the whole Group.

Currently, COVID-19 epidemic continues to be complicated in the world, as well as outbreaks strongly in Southeast Asian countries, especially those having common borders with our country such as Cambodia, Thailand and Laos. There have been cases of COVID-19 infection in the country since the end of April and the situation is becoming very complicated. With the experience of COVID-19 epidemic prevention in 2020 and awareness of great impact of the epidemic on all activities, the units throughout the Group are closely monitoring, ready to prepare and ensure the solutions to cope with different scenarios, considering it as the top key task to ensure safety, stability and not disrupt production and business activities.

Ensure stability, safety, smooth production and business activities

At the meeting, through the units' reports, Petrovietnam President and CEO Le Manh Hung and the Executive Management Board analyzed, evaluated and directed to resolve specific problems. In particular, the Group's leaders directed the Exploration and Production Division to focus on ensuring safety for production activities; continue giving solutions to stop the decline and increase production, synchronously with the increase in reserves; continue reviewing costs, strengthening governance to reduce production costs, increase production efficiency. Fertilizer businesses take advantage of favorable market opportunities to boost production, increase gas consumption…

Oil and gas workers thoroughly implement synchronous epidemic prevention measures with the highest determination

Petrovietnam President and CEO Le Manh Hung affirmed that in the first four months of the year, the Group has ensured safety, stability, and smooth production and business activities with remarkable results, making an important contribution to the socio-economic development of the country. 30% of the above result came from favorable oil prices and 70% came from the Group’s efforts in a long period to persevere and drastically implement solutions for smooth production and improvement of management efficiency.

Employees of PV Power Ha Tinh

Petrovietnam President and CEO Le Manh Hung inspecting the overall maintenance of Phu My Fertilizer Plant in the morning of 7th May 2021

Petrovietnam President and CEO Le Manh Hung giving direction speech

Online meeting at bridge points

In order to continue promoting the achievements and facing the new developments of COVID-19 epidemic, Petrovietnam President and CEO Le Manh Hung directed the units to: Focus on assessing risks and fluctuations of the epidemic situation to update, implement response solutions as well as orient the management of production and business activities; review the tasks and targets in the second quarter and make efforts to solve pending works of the first quarter; continue monitoring and evaluating macro factors, the situation of exchange rates and inflation to assess the Group’s financial resources for business and production activities; focus on ensuring stable, safe, effective production, ready to take advantage of market opportunities; seriously implement cost reduction and optimization, analysis of cost and revenue fluctuations for solutions to improve operational efficiency; continue to strengthen the realization of chain links throughout the Group ... With very positive results in the first 4 months of the year, Mr. Le Manh Hung hoped the units to continue making more efforts to maintain the pace of production and business, well complete the assigned tasks.