PetroVietnam posts profit of over $430 million despite twin crises

Monday, Aug 10, 2020 20:00

Oil exploration in Bach Ho (White Tiger) well. PetroVietnam enjoyed profit of more than VND10 trillion (US$430.6 million) in the last seven months. — VNA/VNS Photo Huy Hung

The Vietnam Oil and Gas Group (PetroVietnam) still enjoyed profit of more than VND10 trillion (US$430.6 million) and contributed over VND38 trillion to the State budget in the first seven months of 2020 despite Viet Nam being hit by COVID-19.

It was an outstanding result given that many of the leading oil and gas groups and companies around the world have posted significant losses this year, cut their operational scale, and let employees go.

Production units such as Vietsovpetro, the PetroVietnam Exploration Production Corporation (PVEP), Rusvietpetro, the Bien Dong Petroleum Operating Company (BDPOC), PVGAS, and the Binh Son Refining and Petrochemical JSC (BSR) reached or surpassed targets set.

Total oil production from January to July stood at 12.52 million tonnes of oil equivalent, exceeding the seven-month plan by 5.3 per cent and representing 61.5 per cent of the annual plan. Electricity production in the period reached 12.75 billion kWh, meeting 99.3 per cent of the seven-month plan and 59 percent of the annual plan.

Nitro fertiliser production totalled 1.06 million tonnes, exceeding the seven-month plan by 6.7 per cent and equalling 67.7 per cent of the annual plan. Petrol production was 7.37 million tonnes, for 95 per cent of the seven-month plan and 62.4 per cent of the annual plan.

Of note, PetroVietnam’s exploration activities recorded an important milestone last month when the group confirmed a large oil and gas reserve at Ken Bau well, which is expected to open up more opportunities to attract investment in exploitation and processing, the gas power industry, and oil and gas services in the future.

PetroVietnam also successfully put into operation the Song Hau Thermal Power Distribution Centre on July 10, signed a contract on management and operations with the National Power Transmission Corporation (EVNNPT), and successfully fired up Turbine 1 at the Song Hau 1 Thermal Power Plant Project for the first time on July 28.

At a virtual meeting between the group and its member units last week regarding production and business, General Director Le Manh Hung said that with the early and flexible implementation of a number of solutions in response to the “twin crises” of oil price fluctuations and COVID-19, the group maintained production and ensured the supply of strategic commodities such as gas, electricity, fertiliser, and petrol for the economy.

According to Hung, positive production and business results during January-July resulted in sound financial outcomes, despite the average price of oil falling to $44 per barrel in the period, equal to just 73 per cent of the planned price of $60 assigned for 2020. — VNS

Comments (0)