Attending and directing the meeting were Mr. Hoang Quoc Vuong - Secretary of the Party Committee, Chairman of the Board of Directors; members of the Standing Party Committee, members of the Board of Directors, Vice President, Heads of Divisions/ Administration Office and leaders of member units of the Group.
Overview of the meeting
In January 2022, along with the gradual re-opening and recovery of major economies, the global economy, trade and investment faced potential risks of the Covid-19 pandemic, inflation, supply disruption, monetary tightening move… threatened to weaken the recovery momentum of the world economy. Besides, new developments of the world political situation such as tensions between Russia and Ukraine, negotiations between the US and Iran on nuclear issues…might have a great influence on the macro economy.
Domestically, the economy had a positive recovery in January. However, the situation of energy consumption, especially electricity and gas recovered slowly and at a low level, directly affecting the Group’s production and business activities. Along with that, because our country’s economy depends heavily on imported raw materials, it will face the risk of high inflation due to the increasing price of raw materials in the world, as well as exchange rate risks as the main trading partner countries are likely to return to a tight monetary policy.
Overview of the Conference to summarize the work in 2021 and deploy the tasks in 2022 of Petrovietnam
Regularly updating, closely monitoring the market, keeping it transparent, stabilizing the production pace, entering 2022, right in January, the whole Group successfully organized the 2021 Summary Conference (on 14th January 2022) to comprehensively evaluate the results achieved in 2021; at the same time offered solutions to successfully implement the 2022 plan of the Group and its member units. Immediately after the Lunar New Year holiday, the Group’s President and CEO organized to work on the implementation of the 2022 plan in all 05 areas of activity, agreed on the contents and solutions for the synchronous implementation of the action program to successfully implement the 2022 plan approved by the Board of Directors for the units and ensured the commitment to growth as concluded by the Group’s President and CEO at the 2021 Summary Conference.
Thai Binh 2 Thermal Power Plant completed the import of fuel oil and chemicals to serve the first fire of Unit 1 during the Lunar New Year holidays
With the foundation from the good implementation of the 2021 plan, and high determination from the beginning of the year, Petrovietnam had a positive start, over-fulfilled the production and business targets in January 2022. Oil production in January reached 0.93 million tons, exceeding 24.2% of the January plan and equaling 10.7% of the 2022 plan. Production of electricity, fertilizer, and petroleum was at high capacity. However, the realized gas output was low due to the holiday period, the demand for gas mobilization for electricity production continued to be difficult and low.
The financial targets were over-fulfilled and at high growth compared to the same period last year. In January 2022, the Group’s total revenue was estimated at 60.8 trillion dong, exceeding 36% of the month plan and increasing by 43% compared to the same period in 2021. The Group’s budget contribution was estimated at 8.4 trillion dong, exceeding 44% of the month plan and increasing by 42% over the same period in 2021. Consolidated pre-tax profit was estimated at 6.2 trillion dong, 2.9 times higher than the month plan and 2.5 times higher than the same period in 2021.
PVOIL ensured petroleum supply before, during and after the Lunar New Year
Petrovietnam and its member units have actively participated in ensuring the petroleum supply in the market, contributing to not disrupting the supply chain, stabilizing the market in the face of fluctuations and supply shortage in the petroleum market recently.
In January 2022, the units throughout the Group urgently focused on implementing the 2022 plan, basically fulfilled and over-fulfilled the month plan. Safety work on the Group’s constructions/factories/rigs was ensured smoothly with no incident during the Lunar New Year. Policies for employees were ensured, especially during the Lunar New Year, creating an exciting atmosphere for all Oil and Gas employees. In addition, the Group’s leaders organized social welfare programs in localities throughout the country such as Tet for the poor, building school items in Hoa Binh, Nam Dinh, Hau Giang…
Petrovietnam Chairman of the Board of Directors Hoang Quoc Vuong presented gifts to employees working on Tet holidays
Delivering speech, Mr. Hoang Quoc Vuong - Secretary of the Party Committee, Chairman of the Board of Directors of the Group specifically directed a number of upcoming key tasks such as promoting the implementation of commitments by the partners in Nghi Son Refinery and Petrochemical Limited Liability Company for solutions to restructuring the company; strengthening inspection, supervision, and absolutely ensuring the important progress milestones of Thai Binh 2 Thermal Power Project; preparing for the inauguration and putting Song Hau 1 Thermal Power Plant into operation in March 2022; at the same time, actively coordinating with relevant authorities and units to promote the Group’s participation and development in the offshore wind power field. Assessing the situation in 2022, despite many difficulties and challenges, there were also many positive signs, Mr. Hoang Quoc Vuong directed the units to make efforts to implement solutions towards the goal of successful completion of the 2022 plan, achievement of better results than in 2021. Concluding the meeting, Petrovietnam President and CEO Le Manh Hung emphasized, in January, the Group achieved quite comprehensive results and high growth over the same period last year. The result would create an important motivation and premise for Petrovietnam to successfully complete the plan for the first quarter and the next quarters of 2022.
Petrovietnam President and CEO Le Manh Hung delivered the closing speech of the Conference
Petrovietnam President and CEO requested the whole Group to focus on a number of solutions in the coming time such as developing a change control plan to respond to the epidemic in the new situation, as well as market fluctuations; closely monitoring and updating developments of political situations and conflicts in the world, domestic and foreign supply and demand for effective solutions and scenarios; updating the process of energy restructuring in general and in the oil and gas industry in particular to have solutions to controlling and responding to the energy displacement in the short and long term; strengthening governance, review and update targets, based on the implementation results in 2021 and growth orientation in each field of operation of the Group, as a basis for monthly, quarterly control, towards the effective implementation of the 2022 plan.
President and CEO Le Manh Hung directed the units to prepare well for the upcoming financial reporting period and Annual General Meeting of Shareholders; focus on forecasting and controlling costs when input risks increase; control and continue to promote the implementation of value chains within the Group; synchronously deploy digital transformation from the Group to the units; promote investment, strengthen portfolio management, focus on key projects, difficult projects; focus on research and development, grasp, forecast and orient the trends that have great influence and impact on the energy, oil and gas fields, thereby synchronously deploy long-term scientific research tasks to create new products and services to inherit, overlap and promote the existing assets of the industry; continue to accelerate the synchronous implementation of Petrovietnam corporate culture re-creation project as well as new brand identity kit of the Group.