Hanoi (VNA) - The Vietnam Oil and Gas Group (Petrovietnam) has achieved financial targets exceeding planned levels by between 34% and 92% in the first five months despite facing significant drops in its core product prices. This is attributable to its effective management of the market fluctuations.
As heard at a production and business conference organised by the company in mid-June, May saw a nosedive in crude oil prices that negatively impact Petrovietnam's operations. However, with its steadfast approach to managing volatility and rigorous operational efforts, the group achieved robust growth across all financial indicators.
In the month, crude oil prices saw a sharp U turn, dropping by about 9% compared to April averages, leading to decreases of 7 - 11% in petroleum product prices. This also resulted in a significant decline in refining margins, the lowest since November 2023. Additionally, its gas supply for power generation fell short of expectations amidst macroeconomic uncertainties, high inflation, and an appreciating US dollar which increased the burden of USD-denominated debts. Yet Petrovietnam's production and business activities were kept stable and efficient, thanks to its experience in managing market fluctuations.
The group also exceeded its monthly production targets by 6.1 - 35.5%. Notably, the electricity output in May and the first five months surpassed expectations significantly. On May 18, its Song Hau 1 Thermal Power Plant reached a milestone of 10 billion kWh, a remarkable achievement for a new factory just operating commercially for nearly two years.
Overall, in the first five months, Petrovietnam surpassed most of its production targets by 3.5 - 35.7%. Highlights include the ammonia output reaching 797,000 tonnes, exceeding the set plan by 6.7% and increasing by 10.7% year-on-year. Meanwhile, the group generated 12.98 billion kWh of electricity, 3.5% higher than the plan and 28.3% higher than the same period last year. Its petroleum production (excluding Nghi Son refinery) stood at 2.32 million tonnes, surpassing the plan by 21.6%.
Despite the sharp fall in profits from oil refining, down 19.8% compared to the same period in 2023, Petrovietnam's financial indicators for the first five months exceeded planned targets by 34 - 92% and showed strong growth from last year.
Also between January and May, the group was estimated to reel in 392.7 trillion VND (15.7 billion USD) in revenue, increases of 15% annually and of 34% compared to the yearly plan. It contributed some 55.4 trillion VND to the State budget through tax, exceeding the plan by 46% and increasing by 2% year-on-year.
Addressing the event, Chairman of the Petrovietnam Board of Directors Le Manh Hung analysed the risks affecting the company's plan execution in the remaining months of the year, including inflation, domestic currentcy depreciation, declining oil prices, and the pace of energy transition. He underscored the need to enhance risk management with proactive measures and scenarios to respond to macroeconomic and market fluctuations, ensuring operational efficiency.
Le Ngoc Son, General Director of Petrovietnam, highlighted the importance of meeting production targets and financial indicators according to plan, closely monitoring market developments, rigorously controlling petroleum inventory amidst declining oil prices, optimising domestic and LNG import gas sources to meet market demands, enhancing chain integration efficiency across the group, optimising plant operations, maintenance, and repairs.
It is necessary to ensure stable production in the remaining months of the year, and to concentrate resources on implementing key projects, he concluded./.
