PetroVietnam Gas workers at its plant. (Photo pvgas.com.vn) As of March 31, crude prices rose more than 23.6 percent. It even broke over 70USD a barrel in March.
The gain received support from lower global oil stocks. The Organisationof the Petroleum Exporting Countries and its allies, known as OPEC , agreed toextend production curbs, and supply from the US was estimated to fall 4 millionbarrel a day.
The bullish oil price might have positive effects on business activities of oiland gas companies in this year's first quarter. In early April, PetroVietnamGas JSC (GAS) reported revenue of over 17.8 trillion VND in the first quarter,equivalent to 102 percent of its quarterly target.
Its profit after tax was more than 2.23 trillion VND, equivalent to 127 percentof its plan, GAS said in a statement on its official website.
The company said that despite unstable demand from customers, lower thanGAS’ estimation and that of the same period last year, and sometransportation issues to transfer oil and gas to the mainland from offshorebasin, GAS still achieved business targets on higher oil prices.
GAS' price policy is normally 46 percent of furnace oil (FO) price. Once oilprices rise, GAS will directly benefit from the higher sale price of gas andliquefied petroleum gas (LPG). It is holding a 100 percent market share innatural gas and is accounting for the largest part in wholesale LPG.
Binh Son Refining and Petrochemical Company Limited (BSR) also expected goodresults in the first quarter. In an announcement, BSR estimated that itgained nearly 21 trillion VND in revenue in the first quarter, with aprofit of over 1.8 trillion VND.
The company stated that the strong rally in the international oil price is themain reason for the good results.
Meanwhile, fuel demand is also expected to improve as the pandemic hasbeen contained.
PetroVietnam Oil Corporation (OIL) said that the increase in oil prices mighthelp it revert the provision for devaluation of inventories in the firstquarter of 2021, as well as to improve domestic fuel output, especiallyaviation fuel when international routes are reopened.
The group of oil and gas companies providing services and products such asPetroVietnam Technical Services Corporation (PVS), PetroVietnam Drilling &Well Services Corporation (PVD), Petrovietnam Transportation Corporation (PVT)and PetroVietNam Chemical and Services JSC (PVC) also witnessed positive signson stable operations and development of new projects.
Shares of these companies were also boosted by the higher oil prices and goodbusiness result outlooks.
In the first quarter, BSR shares increased sharply by 73.5 percentcompared to the beginning of the year, followed by PVD (30.6 percent), PVT(17.2 percent), PVS (22.3 percent), OIL (17.2 percent) and GAS (1.8 percent)./.
VNA
