PetroVietnam employees work on an oil rig. Photo courtesy of PetroVietnam

HÀ NỘI — The Vietnam Oil and Gas Group (PetroVietnam) has more than doubled its pre-tax profit targets in the first five months of this year, despite the pandemic impacting operations and lowering energy demand. 

The energy group posted VNĐ144.9 trillion (US$6.31 billion) in pre-tax profit during January-May, 2.3 times higher their target for the period and tripling figures from 2020.

At an online meeting on June 7, PetroVietnam General Director Lê Mạnh Hùng said that over the first five months of 2021 the group recorded positive results in almost all fields, despite the COVID-19 pandemic.

Despite the need to adjust operations, PetroVietnam adapted, stuck to its goals and achieved positive results in most fields. 

Oil exploitation output was particularly high, with volume exceeding targets by 18 per cent in May, resulting in good growth in financial indexes for the five-month period.

PetroVietnam generated VNĐ227.3 trillion in revenue, 14 per cent higher than their target and an increase of 16 per cent against the same period last year. The group contributed VNĐ32.4 trillion to the State budget, exceeding the plan by 23 per cent and up 20 per cent on-year.

The group also reported that its pre-tax profit in the first five months of the year was three times that of the same period last year, reaching VNĐ15.3 trillion. The group maintained operations while strictly adhering to COVID-19 prevention and control measures.

As disruption from the pandemic increased,  PetroVietnam implemented a series of proactive measures such as; activating emergency responses in disease prevention and control, screening tests for workers and employees, and obtaining COVID-19 vaccines for employees. PetroVietnam will continue to work with authorities to ensure all its employees are vaccinated as soon as possible. 

PetroVietnam has also contributed VNĐ480 billion to the national Vaccine Fund. 

2021 plan

The Chairman of the Board of Members of PetroVietnam, Hoàng Quốc Vượng, praised the positive business results achieved by the company in the first five months of the year, despite the direct and indirect difficulties caused by the pandemic, such as reduced operations and lower demand for electricity and gas consumption.

Concluding the meeting, General Director Lê Mạnh Hùng said all parts of the company must continue to focus on controlling the pandemic. Coordinating with the Ministry of Health and relevant authorities is important to ensure vaccination for all employees, with priority given to those working in domestic and foreign marine projects, construction and factories with a high level of risk. 

The group will continue to implement construction investment projects, which will have long-term positive effects on operations in the future. 

The focus going forward should be on updating macroeconomic conditions such as new price increase cycles, inflation and exchange rates, financial and investment management, strengthening forecasting and assessment of markets, and studying the impact of the COVID-19 pandemic on production and consumption. 

Regarding production, Hùng said the company needed to focus on improving oil production to compensate for gas output, while increasing reserves as a long-term solution.

PetroVietnam will also expand gas and petrochemical products, improve management work, and tackle difficulties in production and trade with state management agencies. 

At the same time, it is continuing to optimise investment, production costs, and connectivity chains.  — VNS