PVN's Q1 revenue up 19 percent

Overview of the briefing

Chairman of the Board of Members of Petrovietnam Le Manh Hung gives directions at the meeting

Impressive growth

In March and the first quarter of 2024, Petrovietnam’s production and business activities were implemented in a mixed context of favorable conditions and difficulties from domestic and foreign markets. Inflation in the US continued to rise; potential energy supply risks are also increasing due to geopolitical tensions in the Middle East as well as the Russia - Ukraine conflict.

Gas prices in Europe continued to decline mainly due to the record high gas reserves, resulting in lower prices of gas, fertilizer products and difficulties in gas and electricity supply for the economy. Domestically, the manufacturing sector still faced difficulties as the Vietnam Manufacturing Purchasing Managers’ Index (PMI) decreased to 49.90 points in March from 50.40 points in February. Furthermore, many related policies and mechanisms are being amended and supplemented…

Petrovietnam CEO Le Ngoc Son runs the briefing

In such contexts, Petrovietnam still implemented the most effective solutions to maintain safe and stable production and business activities. Specifically, in March, crude oil exploitation reached 0.87 million tonnes, a 9.3 percent increase compared to February; gas exploitation reached 618 million cu.m, an increase of 20 percent; fertilizer production at 160,700 tonnes, increasing by 4.7 percent; NPK production of 34,400 tonnes, up 74.3 percent; and electricity production at 2.61 billion kWh, up 74.3 percent compared to February.

In the first quarter 2024, most of the production results of Petrovietnam exceeded plans. For example, crude oil exploitation reached 3.54 million tonnes, exceeding by 19.4 percent compared with plan; gas exploitation at 1.69 billion cu.m, 32 percent beyond the plan; fertilizer production at 475,800 tonnes, a seven percent excess of plan; and petroleum production at 1.61 million tonnes, exceeding the plan by 22.5 percent.

Dung Quat Refinery still supplies products to the market during overall maintenance period

Thanks to good volatility management, although the prices of most Petrovietnam’s key products decreased by two to 16 percent in the first quarter, most of its major financial targets exceeded quarterly plans and recorded high growth compared to the same period last year. Production and business activities of Petrovietnam member units saw stable operations and many of the units, such as BSR, PV Oil, PV Gas, PVCFC, PVI, PV Drilling, well completed their target plans.

Resolving difficulties and obstacles

Speaking at the event, Chairman of the Board of Members of Petrovietnam Le Manh Hung highly appreciated the achieved results of the group in the first quarter.

Petrovietnam’s power plants always ensure high availability

He directed units to find solutions to sustain oil and gas exploitation output, ensure fuel supplies for production and availability of power plants during peak months of the hot season, and risk management in the supply chain of oil refineries amid rising tensions in many countries worldwide, continue to promote investment, control risks of exchange rates, and consistent to complete the group’s target plans.

Concluding the meeting, Petrovietnam CEO Le Ngoc Son asked Deputy General Directors in charge of related areas to direct and resolve the recommendations of their units.

For example, in the field of oil and gas exploration and exploitation, they need to launch investment projects, work with competent authorities on strengthening decentralization so that the group can perform well its related tasks.

Petrovietnam wokers do maintenance work at Dung Quat Oil Refinery

In the field of petrochemical refining and distribution of petroleum products, they are to closely follow market developments, strictly supervise the implementation of key tasks, in particular evaluating the impact of geopolitical tensions that could affect the supply of crude oil to refineries in the coming time; and take measures to ensure the security of crude oil supply to the group’s member units.

In addition, it is necessary to maximize gas exploitation and consumption to increase revenue, and also develop plans to increase the supply of imported LNG, forecast and develop timely electricity production and supply plans, ensure operational efficiency, and meet market demand during the peak period in April and May 2024.

Units providing services are to take advantage of favorable opportunities to expand markets, develop new products and services along with synchronous implementation of work in the group’s value chain and ecosystem.

The second LNG shipment for power generation

In addition, General Director Le Ngoc Son directed the handling of difficult problems at projects such as Long Phu 1, Nhon Trach 3 and 4; the acceleration of O Mon 3 and O Mon 4 power plant projects; the focus on implementing the group’s restructuring projects; the improvement of the quality of risk management; the review and prompt detection of loopholes in the network security and information security to ensure smooth and effective production and business activities on digital platforms.