Dung Quất oil refinery contributed to helping Petrovietnam continue its growth in the first five months of 2024. — VNS Photo

HÀ NỘI — Crude oil prices dropped sharply, negatively impacting the production and business activities of PetroVietnam in May 2024, however due to consistent and proactive management, the company achieved high growth across all financial indicators.

On 10 June, PetroVietnam CEO Lê Ngọc Sơn chaired a regular meeting with leaders of company divisions to review the production and business results for the first five months of the year and to plan for the following months.

Chairman Lê Mạnh Hùng was also in attendance.

PetroVietnam's production activities remained safe and stable, ensuring the supply of essential products and contributing to socio-economic stability. In May, all production targets exceeded plans by 6.1-35.5 per cent, including crude oil extraction at 0.813 million tonnes, gas extraction at 608 million cubic metres, fertiliser production at 163,000 tonnes, electricity generation at 3.16 billion kWh and petroleum production (excluding NSRP) at 531,000 tonnes.

Notably, PetroVietnam’s electricity production in May and the first five months exceeded targets.

On 18 May, the Sông Hậu 1 power plant reached 10 billion kWh, an impressive milestone for a plant that started commercial operations nearly two years ago. The group also worked with relevant ministries, agencies, and localities to resolve issues with the Nhơn Trạch 3 and 4 power projects.

Average production in May from Block 09-1 by Vietsovpetro reached 8,069 tonnes per day, an increase of 146.9 tonnes per day compared to April, with 21 days exceeding 8,000 tonnes per day. The Dung Quất refinery operated safely after maintenance at 114 per cent capacity.

In spite of the sharp decline in core product prices, particularly a 19.8 per cent drop in petrochemical margins, PetroVietnam’s financial targets were exceeded by 34-92 per cent for the first five months, with significant year-on-year growth.

Total revenue for the first five months was estimated at VNĐ392.7 trillion, 34 per cent above targets and 15 per cent higher than the same period in 2023. The group contributed VNĐ55.4 trillion to the state budget, 46 per cent above the plan and two per cent higher than the same period in 2023. Consolidated pre-tax profit was estimated at VNĐ22.1 trillion, 92 per cent above the five-month target and six per cent higher than the same period in 2023.

Chairman Lê Mạnh Hùng said that risks still remain for the group for the remainder of the year, such as inflation, currency depreciation, declining oil prices and the energy transition.

He cautioned that the company needed enhanced risk management to respond to macroeconomic and market fluctuations and ensure operational efficiency. He also stressed the importance of updating strategies, development plans, and investment portfolios and recovering outstanding debts.

CEO Lê Ngọc Sơn highlighted the importance of maintaining production and financial targets, monitoring market trends, managing oil inventories amid declining prices, balancing domestic gas extraction and LNG imports, optimising operations and maintenance of plants and focusing resources on key projects. — VNS