Petrovietnam maintains growth despite declining oil prices

Dung Quat oil refinery contributed to helping Petrovietnam continue its growth in the first five months of 2024. (Photo: VNA)

The optimistic results can be attributed to consistent and proactive management, heard a recent regular meeting of the company’s executives.

Petrovietnam's production activities remained safe and stable, ensuring the supply of essential products and contributing to socio-economic stability. In the first five months of the year, all production targets exceeded plans by 3.5-35.7%, including crude oil extraction at 4.19 million tonnes, gas extraction at 2.91 billion cubic metres, fertiliser production at 797,000 tonnes, electricity generation at 12.98 billion kWh and petrol production (excluding the Nghi Son Refinery Plant) at 2.32 million tonnes.

Notably, Petrovietnam’s electricity production in May and the first five months exceeded targets.

In spite of the sharp decline in core product prices, particularly a 19.8% drop in petrochemical margins, Petrovietnam’s financial targets were exceeded by 34-92% for the first five months, with significant year-on-year growth.

Total revenue for the first five months was estimated at 392.7 trillion VND, 34% above targets and 15% higher than the same period in 2023. The group contributed 55.4 trillion VND to the state budget, 46% above the plan and up 2% year on year. Consolidated pre-tax profit was estimated at 22.1 trillion VND, 92% above the five-month target and 6% higher than the same period in 2023.

The group’s chairman Le Manh Hung said that risks still remain for the group for the remainder of the year, such as inflation, currency depreciation, declining oil prices and the energy transition.

He cautioned that the company needs enhanced risk management to respond to macroeconomic and market fluctuations and ensure operational efficiency. He also stressed the importance of updating strategies, development plans, and investment portfolios and recovering outstanding debts./.