In January 2020, although it is the Lunar New Year with long holiday, all activities of the Group have been maintained and taken place normally. With great effort and concentration, Petrovietnam has over-fulfilled the production and financial targets. Before, during and after the Lunar New Year, security and safety on oil and gas projects have been guaranteed; oil and gas contractors and units have implemented seriously the direction of the Group. The first day after Tet holiday, the Group asked all units to focus and embark on the mission to determine to successfully complete the plan for 2020.
However, it is forecasted that the situation in the country and the world in February as well as in the coming time will face many difficulties because of uncertain risks from the market, epidemics, and natural disasters... along with unpredictably fluctuating world oil prices. These factors adversely affect the business and production plans of the Group in particular as well as the domestic economy and the world in general. In this situation, Petrovietnam President and CEO has instructed the units to strengthen the forecast and proactively respond to market developments in front of the negative impact of the disease caused by nCoV, minimize damage as well as take advantage of opportunities to plan production and market access in a timely and reasonable manner.
At the end of January 2020, Petrovietnam) surpassed many targets, including revenue and State budget contribution in the first month of 2020.
Its total revenue reached 66.3 trillion VND (2.85 billion USD), up 16.2 percent from the month’s plan, while contribution to the State budget hit 8.3 trillion VND, exceeding 17 percent of the goal set for the month.
Meanwhile, Petrovietnam’s oil and gas exploitation increased 8.5 percent against the monthly plan. It produced 147,300 tonnes of fertiliser and more than 1.2 million tonnes of fuel, surpassing targets by 2.5 percent and 5.3 percent, respectively.
Also in January, the group’s affiliate - the Vietnam Petrochemical and Fiber Joint Stock Company (VNPOLY) - produced five tonnes of drawn textured yarn (DTY) to make medical face mask amid the acute respiratory disease caused by the new strain of coronavirus (nCoV).
In January 2020, Petrovietnam and its subsidiaries have implemented some outstanding activites such as:
• Petrovietnam and its subsidiaries have organized activities to celebrate the Party and welcome Spring, enjoy the Lunar New Year in all regions of the country joyfully, warmly, safely, healthily, not affect to production and business activities.
• Jointly organize the Art Program “Forever Believing in the Party” and “The Party is my life” on the occasion of the 90th Establishment Anniversary of the Communist Party of Vietnam (3rd February 1930 – 3rd February 2020), welcome new Spring 2020.
• Support localities with tens of billion dongs to visit and give gifts to the families having merit in the revolution, poor and disadvantaged households during the Lunar New Year. Particularly, the amount from the Headquarter is 5,250 billion dong.
• Organize the program “Tet Reunion - Spring of Love of Petrovietnam 2020”, spend 54 billion dong to sponsor for Tet of Petrovietnam’s laborers and retired workers in difficult circumstances.
• Check production and send New Year’s greeting to cadres, engineers and laborers working on the oil and gas rigs and projects.
• Direct all units of Petrovietnam to strengthen safety, health and environmental measures and instructions for oil and gas workers to proactively prevent the spread and outbreak of diseases caused by nCoV.
• The President and CEO of the Group instructs all the subsidiaries to strengthen the forecast and proactively respond to market developments in front of negative impacts of nCoV epidemic.
• Facing complicated situation due to nCoV epidemic, Vietnam Petrochemical and Fiber Joint Stock Company (VNPOLY) has promptly produced and sold 5 tons of raw materials (DTY) to the market for producing medical masks; Vietnam Petroleum Institute (VPI) has successfully produced antibacterial dry hand sanitizer (germicidal gel, VPI-gel). The product has been tested and recognized by Pasteur T Institute for its ability to quickly and effectively destroy up to 99.99% of common microorganisms.
In order to take proactive measures to cope with negative impacts, minimize losses from epidemics caused by nCoV, particularly the decline of market purchasing power, in order to complete production and business plans of February and the following months of 2020, the Holding Company - PetroVietnam and its subsidiaries focus on:
• Urgently, proactively analyze, evaluate and forecast the impact of epidemics caused by nCoV on the implementation of business and production targets; devise measures to minimize damages as well as take advantage of opportunities arising.
• Reduce costs to maximize profits, specifically: management cost, production cost, selling cost... Review the list of strategic backup supplies, and have solutions to sharing backup supplies between factories with the same technology and the manufacturer to minimize inventory supplies and increase capital using efficiency.
• Optimize updates of technical norms for production operation, consider raising capacity and output on the principle of ensuring safety, stability and sustainable efficiency.
• Propose short-term and medium-term solutions (regarding production plans, products, costs, investments) to cope with negative impacts and seize opportunities due to the impact of epidemics caused by nCoV. Coordinate focal points, business partners, control market risks, optimize product consumption; especially, it is necessary to take initiative in approaching the market that has not been penetrated in order to promote the competitive advantage in a timely manner.
• Actively share information and strengthen cooperation between the units in the Group, the industry and the country.