Maintain stability and growth of production and business activities

On 6th August in Hanoi, Vietnam National Oil and Gas Group (Petrovietnam) held an online meeting with leaders of member units to update the situation of the Covid-19 pandemic response, evaluate the production and business results in the first 7 months of the year, deploy work tasks for the remaining months of 2021.

Overview of the Board of Directors’ meeting room

Petrovietnam Chairman of the Board of Directors Hoang Quoc Vuong, President and CEO Le Manh Hung and members of the Standing Party Committee, members of the Board of Directors, Vice President, leaders of divisions/ administration office of the Group, member units attended at 12 bridge points across the country. 

Overview of President and CEO’s meeting room

In July and the first seven months of 2021, the world economy tended to recover. However, the scarcity of input supply causing sharp increase in the price of raw materials, especially iron and steel, besides the shortage of labor supply, affected the economy. It also caused prices to rise rapidly, leading to the risk of inflation.The spread of the Delta variant is becoming a threat to the global economy. 

Domestically, that Covid-19 epidemic is complicated, spreading rapidly, strongly, on a large scale and implementation of social distancing in 20 provinces and centrally-run cities according to Directive No. 16/CT-TTg has affected to the production and business activities of enterprises. Business conditions in the manufacturing sector declined significantly, trade deficit was high, market demand was weak, especially demand for gas energy, electricity, petrol…all decreased sharply, causing enterprises to reduce capacity, increase inventories, increase costs…Many organizations have lowered their forecasts for Vietnam’s economic growth. It is forecasted that Covid-19 epidemic will continue to severely affect all activities of the economy in the coming time. According to the General Statistics Office, due to the impact of the Covid-19 pandemic, the number of businesses facing difficulties has increased. From the beginning of the year until now, the whole country has nearly 79.7 thousand enterprises suspending business for a definite time, shutting down and waiting for dissolution procedures and completing dissolution procedures, an increase of 25.5% over the same period of 2020. On average, nearly 11.4 thousand businesses withdraw from the market every month. Along with this, tens of millions of workers are negatively affected such as job loss, job relaxation, income reduction…

Regular control to prevent disease

In that context, Petrovietnam has made great efforts to carry out production and business tasks, with the top objective of controlling the epidemic situation and ensuring the health of employees; maintain safe, efficient, and smooth operations. The implementation of production targets in July and the first 7 months of 2021 has closely followed the set plan and adapted to market demand. Notably, financial targets exceeded the plan and grew over the same period. In which, the Group’s total revenue reached 347.8 trillion dong, exceeding 18% of the 7-month plan and equaling 71% of the year plan, an increase of 25% over the same period of 2020; The Group’s contribution to the State budget reached 50.9 trillion dong, exceeding 38% of the 7-month plan and equaling 82% of the year plan, an increase of 32% over the same period of 2020; The Group’s consolidated pre-tax profit reached 27.1 trillion dong, exceeding 286% of the 7-month plan, an increase of more than 3 times over the same period of 2020. The Group also made efforts to reduce costs, with a total value of 1,911.5 billion dong, equaling 70.1% of the 2021 plan. In particular, there were 09 units that successfully completed the year’s consolidated profit after tax including: Parent company - PVN, BSR, Rusvietpetro, PVPower , PVFCCo, PVCFC, PVTrans, PVEP and PVOil.

Up to now, Petrovietnam has continued to make the best efforts in accessing and registering the source of Covid-19 vaccine so that employees can be vaccinated soon. Priority vaccination subjects include seafarers; employees doing operation work; employees of projects… Petrovietnam leaders also proposed a plan to take employees and workers in difficult areas to the vaccination site to ensure that all eligible employees are fully vaccinated. In particular, some units have reached a high rate of the first-dose vaccination against Covid-19 (over 70%) such as: BSR, Vietsovpetro, PV GAS, PVCFC, PETROSETCO… 

PVFCCo engineers and experts always try to operate Phu My Fertilizer Plant safely and stably

The result is a great effort of Petrovietnam in the face of the direct and heavy impacts of the Covid-19 pandemic on all aspects of activities such as production and consumption of petroleum, gas, electricity, as well as other products, goods and services, reducing jobs, incurring costs, increasing inventories…

Focus, work hard for dual goals 

Chairman of the Board of Directors Hoang Quoc Vuong delivered speech

Facing the complicated and unpredictable epidemic situation, which will greatly affect the Group’s production and business activities in the coming time, Petrovietnam Chairman of the Board of Directors Hoang Quoc Vuong suggested that the whole Group continue to promote strict implementation of measures to prevent the Covid-19 epidemic, especially efforts to further accelerate the rate of vaccination for employees, because this is the most effective measure today to be able to control the disease, ensure smooth production and business activities. Mr. Hoang Quoc Vuong emphasized “During this difficult time, we must better implement Petrovietnam Culture with the motto of Solidarity - Discipline - Creativity - Efficiency. Units must be more united with mutual love, support and strengthen labor discipline, creativity to overcome difficulties together, towards common efficiency for the Group’s operations. 

President and CEO Le Manh Hung delivered conclusion speech at the meeting 

Summarizing the meeting, Petrovietnam President and CEO Le Manh Hung affirmed that the huge and direct impacts of the Covid-19 pandemic on all aspects of the Group’s activities, of which the first and most obvious is the market problem, when all groups of products and goods of the Group such as crude oil, gasoline, oil, gas, electricity, fertilizer… are being severely affected when the market demand weakens sharply. The emergence of the Delta variant is causing new dangers and complications, even in countries with large numbers of people vaccinated. In that situation, Petrovietnam President and CEO suggested that the units continue to improve disease prevention, besides 5K, well apply technology solutions to meet the requirements of working online. deploy vaccination for workers as soon as possible. Synchronously with that is the safe implementation of production, business and investment activities, ensuring smooth product consumption in the scenarios set out about the situation of the Covid-19 epidemic in our country; at the same time, prepare solutions to promptly take advantage of market opportunities when the epidemic is better controlled. 

Along with that, Mr. Le Manh Hung directed the leaders of the units to review risks in the implementation of the plan, direct production and business activities flexibly depending on market fluctuations; Continue to monitor and analyze macro and market fluctuations to come up with specific response solutions, especially financial solutions to ensure smooth cash flow; Speed up the implementation of projects, remove related problems; actively and effectively deploy value chains within the Group, in order to share and promote the resources of the whole system; promote digital transformation, reduce and optimize costs, improve competitiveness; strengthen risk management to respond promptly and flexibly, especially existing risks in product consumption, inventory…

Petrovietnam President and CEO Le Manh Hung highly appreciated the efforts of the whole Group to achieve very positive results in the first 7 months of this year in the context of difficult market conditions and hoped that the units would continue to make great efforts, strive to protect the achieved results, implement as much as possible the plan of remaining 5 months of 2021, in order to complete the dual goals of both ensuring the employees’ health and completing well the production and business tasks.