2023 continues to face lingering difficulties from the epidemic period. There are also many “headwinds”, two of which are very prominent and have a strong impact on the macro-economy. The first is that the slowdown of the world economy and major economies leads to fragmentation and a huge impact on global demand. The second is inflation and interest rates, for Vietnam this is a big “headwind” because Vietnam tries to maintain low inflation below 4% and low interest rates today, which is contrary to the world when economies around the world are now using high interest rates to control inflation. 

Meanwhile, not only Petrovietnam but also the oil and gas industry and the energy sector in general face great difficulties, which are the trend of energy mobility and instability in supply, demand and prices. The prices of energy products decline sharply compared to 2022, in which crude oil price decreases by 17-38%, fertilizer price decreases by 25-30%, refining and petrochemical profit margins decrease by 24-26%. 

In particular, the global supply chain is facing difficulties because conflicts and sanctions in the world have greatly affected all aspects of Petrovietnam’s activities including the oil and gas exploration and production - the core activities of Petrovietnam when the implementation of drilling programs is affected by the lack of input supply. 

The Group’s leaders honor and reward the Divisions for contribution to the early achievement of output and financial targets in 2023

Facing that situation, from the beginning of the year, the Group’s leaders, directly President and CEO Le Manh Hung worked with each unit and sector to develop production and business plans for 2023, develop management solutions, technical solutions, increase production, promote business, limit the impact from adverse factors; focus on maintaining volatility management, cost management researching market fluctuation trends to deploy appropriate production activities, especially taking opportunities to increase cash flow and profits at favorable oil price times... 

Through monthly CEO meetings, President and CEO Le Manh Hung has always noted the Group’s general work program in 2023 as “Volatility management; Scaling; Accelerating digital transformation; Shifting paradigm; Improving productivity; Reinventing business”. This is also the basis for the Group and its member units to implement work and tasks in 2023 synchronously, throughout, effectively with quality. A special feature in 2023 is that the Group and its units not only stop at the goal of completing the assigned plan but also set “more aspiration” goals with more difficult challenges, need more consensus and joint efforts for growth target of next year higher than the previous year,  the following month higher than the previous month.

Petrovietnam has maintained stable oil and gas production activities in 2023, early achieved the assigned targets

In recent years, the Government has always had close instructions with the support from central and local ministries/ departments/ branches and especially the solidarity, self-reliance and high determination of all employees of the Group. Along with that, the Party Committee and the Board of Directors agreed to promote efficiency and timely learn from experience in the management of fluctuations of the Group’s Board of Directors, which has helped Petrovietnam fulfill ahead of the schedule for the whole year 2023 in most important production and business targets.  

Specifically, Petrovietnam has comprehensively fulfilled its financial targets and achieved the assigned full year targets from 1.5 to 5 months ahead of schedule. In which, the Group’s submission to the State budget is completed 5 months ahead of the year’s schedule (with 78.3 trillion dong on 30th July 2023); Consolidated profit of the whole Group is completed 4 months ahead of the year’s schedule (with 34.7 trillion dong on 31st August 2023).
Total revenue of the Group is achieved 2 months and 20 days ahead of the year’s schedule (with 677.7 trillion dong on 10th October 2023); Total consolidated revenue of the Group is achieved 2 months and 18 days ahead of the year’s schedule (with 413.7 trillion dong on 12th October 2023); Total revenue of the Group’s parent company is achieved 1 month and 15 days ahead of the year’s schedule (with 181.6 trillion on 15th November 2023);  Profit before tax of the Group’s parent company is achieved 4 months ahead of the year’s schedule (10.9 trillion dong on 31st August 2023). 

Two outstanding areas providing important contribution to the completion of the Group's financial results are oil and gas exploration and production together with oil and gas processing, storage and distribution of petroleum products. 

Oil and gas workers unite for the Group’s sustainable growth aspiration

Petrovietnam’s oil and gas exploration and production sector has had a great success in 2023 when fulfilling the whole year’s target for increasing oil and gas reserves 1 month and 10 days in advance (12 million tons out of the whole year plan of 8-16 million tons of oil equivalent by 20th November 2023). At the same time, Petrovietnam has made 02 new oil and gas discoveries at Block 16-2 (Ha Ma Vang-1X drilling well) and at Block PM3-CAA (Bunga Lavatera-1 drilling well). This is a very encouraging result when for the first time in the past 5 years, the Group has 2 new discoveries in a year. 

The Group has completed the whole year’s domestic oil production target 1 month and 18 days in advance when it reached 7.52 million tons on 12th November 2023. By the end of 21st November, domestic oil production has reached 7.71 million tons, exceeding 2.5% of the year plan, making an important contribution to the Group’s completion of the whole year plan for oil production (domestic and foreign) when it reached 9.29 million tons on 21st  November - 1 month and 9 days earlier than the full year plan. 

In the manufacturing sector, Petrovietnam has completed the year’s plan for petroleum production (excluding Nghi Son) 2 months and 25 days in advance (with 5.53 million tons on 6th October 2023). 

In all situations, Petrovietnam still ensures petroleum supply for socio-economic development

The Group has completed the year plan for petroleum business output 2 months in advance (with 9.06 million tons on 30th October 2023). PVOIL has completed the full-year plan of 3.3 million tons 4 months in advance; PVNDB plans to complete the year plan of 5.76 million tons 20 days in advance (on 10-11th December 2023), making an important contribution to maintaining petroleum supply. Since then, it has affirmed that Petrovietnam has well performed the tasks assigned by the Government, the Prime Minister and the Ministry of Industry and Trade: “In all situations, not to break, not to lack petroleum supply to serve the task of socio-economic development”. The achieved results have shown the effectiveness of Petrovietnam’s management and administration as well as the efforts of contractors and units in implementing production and business activities. 

According to President and CEO Le Manh Hung, the early achievement of production and financial targets is the encouragement of the spirit and responsibility of the Group’s employees to be consistent with the goal of growth, try to complete all targets, and strive to achieve the highest targets assigned in 2023. On the occasion, the Group’s leaders rewarded, honored and encouraged the Group’s Divisions for their contributions to the early achievement of production and financial targets in 2023.

In the remaining time of 2023, Petrovietnam will be consistent with the set goal that is to fulfill the highest targets and tasks assigned, strive for growth aspirations. The results in 2023 will be the basis for Petrovietnam to continue striving and nurturing the goal of building and developing the Group to become the leading energy industry group of the country and the region, in line with new development trends with new motivations and new opportunities in the coming time.