Production activities maintain growth momentum, Petrovietnam makes an important contribution to minimizing negative impacts on the economy

CEO briefing June 2023:

Production activities maintain growth momentum, Petrovietnam makes an important contribution to minimizing negative impacts on the economy

In May 2023, in the context of extremely difficult global and national economic conditions, severe weather with record heat on a large scale caused electricity shortages, production decline…, economic production activities Businesses of Vietnam Oil and Gas Group (Petrovietnam) still maintain safety and stability, especially the production and supply of key products such as gas, electricity, and petroleum have impressive growth momentum, over That contributes to reducing electricity supply pressure, ensuring national energy security, and making an important contribution to the budget.

Electricity production increased by 48% over the same period, revenue exceeded 20% of the plan in the context of a sharp drop in oil prices

On June 12, Petrovietnam General Director Le Manh Hung chaired a regular briefing in June 2023 with heads of units within the Group to evaluate the implementation of production and business plans for May and the first 5 months of the year. ; Implement plans for June and the following months.

In May, the world and domestic macroeconomic situation showed that global production continued to decline. The global PMI index continues to be below 50 points, remaining at 49.6 points for 3 consecutive months, especially the PMIs of major economies in the US, EU, and China in May all decreased compared to April; High interest rates create a drag on economic growth, inflation continues to be high, and growth rate is weak. Domestically, manufacturing PMI also decreased to 45.3 points in May compared to 46.7 in April, recording the third consecutive month of decline and this is also the most significant decrease since September/ 2021. In addition, the situation of electricity shortage, low credit growth, shrinking exports, especially in large markets… shows that production and business activities of enterprises face many difficulties, especially for small businesses. Large enterprises in the manufacturing sector such as Petrovietnam.

Besides, in May the price of crude oil and petroleum products continued to decrease, affecting the production and business efficiency of the Group as well as its member units. The average crude oil price in May 2023 decreased by 11% compared to the average in April and decreased by 7% compared to the average in the first quarter of 2023, down 33% compared to the same period in 2022. Oil refining profit margin, gas price, Fertilizer, gasoline… prices all decreased.

In that context, with efforts to increase production to partly offset losses from fluctuations in energy prices, limit negative impacts from the macro and market situation, and effectively take advantage of opportunities, Petrovietnam has exceeded its production and business plan; contributing to the supply of strategic goods: gas, electricity, nitrogen, gasoline, etc. for the economy. In May and the first 5 months of the year, the Group’s production targets were all completed beyond plan, especially in May, recording positive growth, contributing to stability and ensuring national energy security. family.

Specifically, crude oil exploitation output in May 2023 reached 0.92 million tons, exceeding 15.6% of the monthly plan, up 2.6% compared to April 2023, equal to the same period in 2022; Overall, 5 months reached 4.41 million tons, exceeding 13.8% of the 5-month plan. In particular, domestic crude oil exploitation in May 2023 reached the highest level since the beginning of the year, reaching 0.77 million tons, exceeding 18.4% of the monthly plan, an increase of 3% compared to April 2023, an increase 1.1% over the same period in 2022; Overall, 5 months reached 3.66 million tons, exceeding 16.3% of the 5-month plan. Crude oil exploitation abroad in May 2023 reached 149.5 thousand tons, exceeding 3.1% of the monthly plan, up 0.9% compared to April 2023; Overall, 5 months reached 751.6 thousand tons, exceeding 2.6% of the 5-month plan.

The good news is that in early June, the Petroleum Exploration and Production Corporation (PVEP) tested the well of Dai Hung Nam – 4X with very positive test results. Reservoir test results at 12:20 a.m. on June 8, 2023 showed that the well showed good oil and gas performance with a maximum test flow of about 6,350 barrels of oil/day and 4.5 million cubic feet of gas/day. With such traffic, it confirms that the potential of the Dai Hung Nam area is commercial enough and ready to be exploited. This is also the premise for PVEP to continue to develop and exploit Block 05.1(a) area as well as other blocks in the Nam Con Son basin area, continuing to contribute to Petrovietnam’s oil and gas exploitation output in the coming time. .

Petrovietnam’s gas exploitation output in May 2023 reached 0.75 billion m3, exceeding 27.6% of the monthly plan, up 2.8% compared to April 2023, up 6.8% over the same period last year. 2022; Overall, 5 months reached 3.44 billion m3, exceeding 21.8% of the 5-month plan . The average daily gas output in May is also the highest level since the beginning of the year.

Fertilizer production in May 2023 reached 158.4 thousand tons, exceeding 5.5% of the monthly plan, up 53.8% compared to April 2023, up 3.8% over the same period in 2022; Overall, 5 months reached 719.5 thousand tons, exceeding 11.1% of the 5-month plan.

Petroleum production (excluding NSRP products) in May 2023 reached 570.2 thousand tons, exceeding 14.4% of the May plan; Overall, 5 months reached 2.92 million tons, exceeding 13.3% of the 5-month plan, up 4.7% over the same period in 2022.

In particular, when there was a shortage of electricity for production and life, especially last May, Petrovietnam made efforts to provide maximum fuel for electricity production, optimizing the operation of the Group’s power plants. group to increase supply to the system, contributing to reducing electricity supply pressure. The Group’s electricity production in May 2023 reached 2.36 billion kWh, up 12% compared to April 2023, up 85.5% over the same period in 2022; Overall, the five months reached 10.12 billion kWh, an increase of 48% over the same period in 2022. In May 2023, the Group’s mobilized electricity output reached an average of 75.5 million kWh/day, an increase of 5 .3 million kWh/day (equivalent to an increase of 7.5%) compared to April 2023. In particular, the average output in May 2023 of PetroVietnam Power Joint Stock Corporation (PV Power) reached 51.5 million kWh/day, an increase of 5.9 million kWh compared to the average in April 2023; At the same time, in an effort to contribute to reducing the electricity shortage in the North, Thai Binh 2 Thermal Power Plant has also operated at 100% capacity.

With high-speed production efforts, Petrovietnam’s financial targets in the first 5 months of the year also exceeded the plan, making an important contribution to the economy. Total revenue of the entire Group is estimated at 334 trillion VND, exceeding 20% of the 5-month plan. State budget contribution of the entire Group (excluding budget budget) is estimated at 54.5 trillion VND, exceeding 45% of the 5-month plan. Consolidated pre-tax profit is estimated at 21.7 trillion VND, exceeding 63% of the 5-month plan and equal to 63% of the 2023 plan. This result is also much more positive than the decline in oil prices. Petrovietnam’s average oil price in May 2023 decreased by 7% compared to the oil price in April 2023 and decreased by 27.7% compared to the same period in May 2022. On average, in 5 months, oil prices are 18.4% lower. % compared to the same period in 5 months of 2022.

Associate production and business goals with the country’s overall goals

Speaking at the meeting, Chairman of the Board of Directors of Petrovietnam Hoang Quoc Vuong emphasized that to fulfill the Prime Minister’s expectations, the entire Group must strive to make even greater efforts and successfully complete the management plan targets. set out, to partly compensate for the difficulties that the country’s economy is suffering.

Chairman of the Board of Directors of Petrovietnam Hoang Quoc Vuong also directed issues related to the implementation of the Block B – O Mon gas project, as well as component projects in the chain to ensure the project’s progress goals are very good. this important.

After listening to reports, discussions and instructions for each unit and field of operation of the Group; At the same time, accepting the instructions of Chairman of the Board of Directors Hoang Quoc Vuong, concluding the meeting, General Director of Petrovietnam Le Manh Hung emphasized “The Prime Minister has repeatedly directed that the goals of state-owned enterprises must be with the common goals of the country. Therefore, the entire Group must thoroughly grasp this direction, closely follow it and serve the common goal. Especially in the current difficult economic context, the role of state-owned enterprises is urgently needed.”

General Director of Petrovietnam Le Manh Hung also noted a number of other contents that need to be focused in the coming time such as: Based on the production and business results in the first 5 months of the year and updated reports, the Group and its member units It is necessary to review and update goals and allocate targets for plan implementation in the following months; Implement production and business plans and management to ensure maintenance and growth of production output, especially in the fields of oil and gas search – exploration – exploitation, petrochemical refining, gas industry, and electricity industry ; Review investment work and portfolio management, create changes and increase the disbursement rate of investment capital; Focus on implementing and promoting large and key projects: Block B – O Mon, upgrading and expanding Dung Quat Oil Refinery, Nhon Trach 3 and 4 Power Plant Project,…, ensuring resource balance capital and cash flow for projects; Develop a plan to organize a conference on service work in June, evaluate and propose plans, goals and solutions for this field; Strengthen chain connections, review ongoing chains and deploy new chains to promote the strength of the Petrovietnam ecosystem; Improve the management system, review and update according to new legal regulations;…

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