Song Hau 1 Thermal Power Plant completed its 2024 production plan 2 months ahead of schedule. (Source: PVN)

Key indicators exceeded the plan

In October, the domestic and global macro-economy showed signs of improvement. Vietnam's Purchasing Managers' Index (PMI) recovered to 51.2 points, up from the previous month. The situation of some items related to PetroVietnam's production and business activities changed for the better.

The most prominent highlight of October is that PetroVietnam was honored in the leading position in the Top 10 Strong Vietnamese Brands 2024; at the same time, for the 6th time, it was honored as the leading enterprise in the Top 500 Most Profitable Enterprises in Vietnam.

In October 2024, leaders of PetroVietnam and Zarubezhneft exchanged cooperation documents, consolidating the close relationship between the two sides over the past 40 years in the oil and gas and energy sectors. The project "Manufacture and complete installation of the topside of the RC-8 wellhead platform" by Vietsovpetro is an outstanding project of the 3rd Enterprise Development Innovation Award, 2024.

In terms of specific indicators, PetroVietnam's crude oil production in October reached 822 thousand tons, exceeding the monthly plan by 19%, up 4.5% compared to September 2024; in the first 10 months of 2024, the output reached 8.25 million tons, exceeding the annual plan by 0.6%, reaching the target 2 months ahead of schedule. The Group's total electricity production in October reached 2.49 billion kWh, up 50.7% compared to the previous month; in the first 10 months of 2024, PetroVietnam produced 23.37 billion kWh of electricity, up 19.6% compared to the previous year.

Notably, in October, nitrogenous fertilizer output reached 163 thousand tons, exceeding the monthly plan by 7%, up 16% over the previous month; gasoline and oil output reached 636.9 thousand tons, exceeding the monthly plan by 14%, up 1.6% over September 2024. Accumulated in 10 months, nitrogenous fertilizer production reached 1.54 million tons, exceeding the 10-month plan by 6.5%, up 5.4% over the same period in 2023; gasoline and oil production (excluding NSRP) reached 5.55 million tons, exceeding the 10-month plan by 18.7%, equal to 95.8% of the annual plan (if including NSRP output, it reached 12.36 million tons, exceeding the 10-month plan by 15%, equal to 95% of the annual plan, up 11.4% over the same period in 2023).

Recorded revenue of VND820.4 trillion in 10 months

PetroVietnam continues to perform well in its management, most of its production targets have exceeded the plan, so although the prices of the Group's key products have decreased compared to the same period and the previous month, greatly affecting its operating efficiency, the results of the first 10 months of 2024 have all financial targets exceeded by 26% - up to 3 times the 10-month plan.

The Group's financial indicators have made important contributions to the country's socio-economic development, exceeding the annual plan by 12% - 2.6 times and growing strongly compared to the same period in 2023.

Overview of the offshore wind power base construction site. (Source: PVN)

Specifically, the total revenue of the whole Group reached the target 3 months ahead of schedule, in the first 10 months of 2024 it is estimated at 820.4 trillion VND, exceeding the annual plan by 12%, up 10% over the same period in 2023; The budget payment of the whole Group reached the target 4 months ahead of schedule, estimated at 129.2 trillion VND, exceeding the annual plan by 37%, up 7% over the same period in 2023; Consolidated pre-tax profit is estimated at 43.3 trillion VND, exceeding the annual plan by 96%. With the achieved results, in the past 10 months, PetroVietnam has fully completed 6/6 financial targets for the whole year of 2024 according to the plan assigned by the Capital Management Committee and the Board of Directors.

In the member units, in the first 10 months of 2024, there were 17 units with high growth in consolidated revenue from 1-76% and 11 units with growth in consolidated pre-tax profit from 3% to 2.6 times compared to the same period in 2023.

PetroVietnam also allocated a budget for social security in the first 10 months of 2024 of VND 515 billion, reaching 69% of the plan (VND 750 billion), of which VND 121 billion was used to support the construction of Great Solidarity houses for the poor; VND 227 billion was used to support education and training programs; VND 57 billion was used to support health care programs; VND 110 billion was used to support organizations, funds, and associations... In particular, the Group has coordinated with the People's Committee of Lao Cai province to implement the Kho Vang Village Reconstruction Project, Coc Lau Commune, Bac Ha District, Lao Cai Province under the direction of the Prime Minister (with a sponsorship value of over VND 40 billion), to be completed in December 2024.

Regarding the plan for the last two months of the year, PetroVietnam strives to achieve the highest set management targets, deploy new motivations and renew old motivations.

Focus on solutions for the target of 1 million billion VND in revenue

To reach the 2024 target, PetroVietnam member units have proposed many solutions and initiatives. In the exploration and exploitation sector , units completed the year's major maintenance and repair campaign, maintained exploitation projects on schedule according to the management plan, and extended new contracts.

The gas, electricity and fertilizer sectors are determined to implement activities in line with the Group's goals. Investment activities promote projects implemented at fertilizer plants. Following the energy transition trend, Vietnam Gas Corporation (PV GAS) and Vietnam Oil and Gas Power Corporation (PV Power) are making restructuring adjustments, increasing the proportion related to renewable energy and new energy.

Engineers at Dung Quat Oil Refinery. (Source: PVN)

The petrochemical refining block actively improves machinery, saves fuel, builds scenarios for the last months of the year and 2025; builds a management plan to control both input and output inventories.

The general solution of the technical service sector is to extend contracts, strengthen coordination between technical service units and production and business to complete the assigned management plan, focusing on horizontal linkage according to the strengths of each unit. Vietnam Oil and Gas Technical Services Corporation (PTSC) carried out a series of outstanding events in the last 2 months of the year, in which the unit will export the first base for offshore wind power.

In 2024, PetroVietnam's investment disbursement rate is higher than the national average, which is a great effort of the whole Group, which depends on human factors and good governance. In addition, PetroVietnam also achieved the highest savings and social security targets, which are of special significance in the context of the country having suffered many natural disasters in recent times.

Some PetroVietnam member units have exceeded their revenue plans in 10 months, including: PV GAS completed 110% of the plan; PVOIL completed 108%; BSR 108%; Vietsovpetro 115%; PV Drilling 127%; DQS 131%; PVMR 125%; PVChem 106%; PVI 102%; Parent company 105%.

Units need to continue to evaluate the market, develop plans, proactively add new motivation, renew old motivation, carry out assigned tasks and at the same time develop plans for the last 2 months of the year, ensuring synchronization with the Group's plan, in the spirit of "saving - efficiency - anti-waste".

In the coming time, the Group's professional departments will proactively organize seminars and discussions, coordinate with state management agencies, departments/sectors, and experts on each draft law, participate in giving opinions on draft laws, promptly voice their opinions to the Government, and contribute to creating a favorable legal corridor for production and business.

PetroVietnam needs to focus highly on the management plan, be steadfast and determined with the set goals, ensure completion and over-fulfillment of the plan. Continue to closely follow the market, prioritize operational efficiency, review growth potential, strive for the target of 1 million billion VND in revenue in 2024, achieve high efficiency in consolidated profit in 2024, maintain the number one position in Vietnam in terms of profit, and prepare for growth momentum for the following year.