Petrovietnam maintains growth trajectory despite market challenges
Vietnam's State-owned oil and gas giant Petrovietnam has defied rising market risks with a strong performance in the first two months of this year, recording a 19% year-on-year increase in turnover and a 5% growth in its contribution to the State budget.
Petrovietnam surpassed or met most of its production targets, with some exceeding expectations by as much as 30%. Oil extraction reached 1.66 million tonnes, 19% higher than the target, while gas extraction hit 1.07 billion cubic meters, surpassing the plan by 30%, although this figure still represented only 87% of the group's total supply capacity.
Production of key products like urea, NPK fertilisers, liquefied natural gas (LNG), petroleum products, and polypropylene also exceeded targets by 6-14%, contributing significantly to Vietnam's socio-economic development.
Notably, the Petrovietnam Fertiliser and Chemicals Corporation (PVFCCo) achieved fertiliser exports equivalent to its total sales for the entire 2023. Ca Mau fertilisers successfully entered the demanding markets of Australia and New Zealand while solidifying their presence in existing American markets. Additionally, PV GAS started supplying LNG to industrial customers from March 15.
Despite a 3-15% decrease in the prices of key products during the period, Petrovietnam successfully achieved all its financial targets, exceeding the plan by 18-48%. Its total revenue was estimated at VND149.6 trillion (US$6.23 billion) while State budget contribution hit VND20.6 trillion, or 28% and 18% higher than the targets, respectively.
The group also witnessed a substantial 58.6% year-on-year increase in its total investment value, topping VND3.1 trillion.
To fulfill its business plan for the first quarter and beyond, Petrovietnam CEO Le Ngoc Son instructed all units to continue closely working with ministries and relevant agencies to finalise legal documents, firstly mechanisms and policies related to LNG and electricity as it is a crucial task for the group’s ongoing development across all stages, from exploration, and exploitation to production and sale.
