Petrovietnam on target for recovery and growth

Petrovietnam on target for recovery and growth

In the first nine months of 2021, the Vietnam Oil and Gas Group (Petrovietnam-PVN) achieved positive results and maintained a “green zone” status of low pandemic risk in production and business.

Projects on schedule, budget contribution grows

Vietnam’s oil and gas industry contributed significantly to the positive economic results in the first nine months of 2021. Petrovietnam's member units have not only ensured good pandemic prevention and control, but also secured their set growth targets. Data released at a recent online progress meeting of the group showed that total revenue in September 2021 was estimated at VND44.9 trillion, exceeding the set plan by 11 percent, raising the accumulated revenue in the first nine months to VND437.8 trillion, up 16 percent compared with the initial plan.

Specifically, crude oil production in September exceeded the plan by 15.4 percent, and production in the first nine months reached 8.2 million tonnes, exceeding the nine-month plan by 13 percent, contributing VND65.9 trillion to the state budget, exceeding the 2021 plan by five percent and up 17 percent compared to the same period in 2020. In this difficult context, the important contributions of Petrovietnam reflect the major efforts of the group's leaders, its member units and nearly 60,000 employees.

Corporate governance was also implemented closely with actual developments, and fluctuations of the market, with coordination strengthened among the units from upstream, midstream to downstream stages. During the nine-month period, the group put Su Tu Trang field phase 2 into operation as planned, while other projects such as BK-18A, BK-19 are being implemented as scheduled (late October 2021 for the BK-19 project, and late November 2021 for the BK-18A project). The group will also mobilize all resources to put into operation the Song Hau 1 and Thai Binh 2 power projects, with the first generating unit of the Song Hau 1 Thermal Power Plant expected to go into commercial operation in early November 2021.

Vaccinations and ratings

In addition to production and business, Petrovietnam also participated in social security activities. Since early 2021, the group has implemented the Covid-19 prevention and control solutions and effectively performed the “three-on-site” production model. In particular, it promptly carried out the vaccination strategy combined with health care for employees. As of September 30, 2021, the group had contributed VND775.8 billion to Covid-19 prevention and control, of which VND554.9 billion was donated to the vaccine fund. So far, most of its employees have been vaccinated with at least one dose, with priority given to workers at construction sites, projects, and factories.

Regarding the thrift and anti-waste practice, in the first nine months of 2021 Petrovietnam saved more than VND2.209 trillion, equaling 80.9 percent of the year’s plan. Digital transformation has been actively implemented. Security, oil and gas safety, environmental safety, labor safety, fire and explosion prevention on oil and gas works have also been closely monitored and strictly implemented.

On September 9, Fitch Ratings, a leading global provider of credit ratings, assessed Petrovietnam's Standalone Credit Profile (SCP) at BB+. It also affirmed the group’s long-term foreign-currency Issuer Default Rating (IDR) at BB with a Positive Outlook as well as senior unsecured rating at BB. These positive ratings reflect the recognition of Petrovietnam's achievements.

VietNam Economic News