PVN President and CEO chaired the 10-month meeting
On 5th November, PetroVietnam President and CEO Le Manh Hung chaired an online meeting with the general directors of member units on business results in October and 10 months of 2020, outlining tasks and solutions for last months of the year.
In October, the Covid-19 epidemic continued to deteriorate in many countries, causing oil prices to decline and remain at low level. Average world crude oil price in October 2020 decreased sharply in comparison with September. Average Brent oil price in the month was 40.5 USD/ barrel. The average price of crude oil exported and sold by Petrovietnam in October 2020 was 41.1 USD/ barrel, a decrease of about 2.58 USD/ barrel against September. Average crude oil price in 10 months of 2020 is 43.9 USD/ barrel, much lower than the planned price of 60 USD/ barrel. Besides, because the demand for energy consumption in the country decreased sharply due to the impact of epidemic and storms, gasoline and electricity consumption continued to decline sharply.
In that very difficult situation, with the drastic direction of leaders of all levels and efforts and perseverance to synchronously deploy response solution packages of the whole Group, in October and accumulated 10 months of 2020, production, business and investment activities of the whole Group continued to be maintained stably, optimally effective in all aspects of operation. The accumulated oil output in the first 10 months of 2020 was estimated at 17.32 million tons, exceeding 2.3% of the plan; The Group’s revenue was estimated at 464.5 trillion dong, equivalent to 83% of the plan; the whole Group’s contribution to the State budget was estimated at 58.3 trillion dong, equivalent to 86% of the plan.
Regarding fertilizer market, although the domestic urea price remained at low level, the transaction was slow due to the low market period as well as the long-term effects of storms and floods, thanks to the dynamism in searching and taking advantage of export opportunities, the consumption volume in October of Phu My and Ca Mau Fertilizer factories continued to achieve positive results. PVFCCo reached 100% of the monthly output plan; PVCFC reached 130% of the monthly plan (mainly thanks to the export orders). With good consumption situation, fertilizer production output of the Group remained at a high level, exceeded 42.7% of the plan in October; exceeded 11.9% of the plan in the accumulated 10 months.
The units throughout the Group also seriously implemented measures to cope with the double effects (the Covid-19 epidemic and the deep fall in oil prices). In the first 10 months of 2020, the whole Group implemented a reduction of 8,111 billion dong, equivalent to 87% of the year target.
At the meeting, General Directors of units reported specifically on the business situation in October and the first 10 months of 2020 of their units; implementation and handling of work items set out in the previous month; plan for the remaining 2 months of the year, difficulties and problems that need to be removed. On that basis, the Group’s leaders reviewed and evaluated the performance of each unit and gave instructions to the work, as well as resolved the specific recommendations of the unit.
Giving conclusion speech, Petrovietnam President and CEO Le Manh Hung affirmed that, in the past 10 months, in the context of the Covid-19 pandemic, the decrease in oil prices as well as severe weather, Petrovietnam has kept the pace of production and business stable, continuous and safe. The production targets have been basically completed and over-fulfilled. Thereby, Petrovietnam is one of the few oil and gas enterprises in the world that has recorded positive financial indicators with no loss in the context that global oil and gas market is heavily affected.
Assessing that general situation in the last months of the year was still very difficult, Petrovietnam President and CEO directed the units to focus on reviewing plan of the last 2 months, making the best efforts to complete the 2020 plan and preparing for the 2021 plan; particularly paying special attention to such solutions as: thoroughly practicing thrift; continuing to synchronously deploy packages of dual impact response solutions; concretely and further strengthening cooperation between units, synchronously deploying value link chains to efficiently use resources and advantages of each unit; proactively forecasting, proposing scenarios to cope with market fluctuations; discovering and seizing new and viable opportunities, to disburse investment effectively, creating a premise for the development of the next stage.