Petrovietnam profits drop despite revenue surge

By Hung Le January 10, 2020 | 09:00 pm PT

A PVN oil drilling platform in Vung Tau, southern Vietnam. Photo by Shutterstock/TommyTeo.

State-owned oil giant Petrovietnam saw consolidated pre-tax profits fall 13.4 percent year-on-year to VND43.8 trillion ($1.89 billion).

This happened despite revenue having surged 17 percent year-on-year to VND736.2 trillion ($31.78 billion). State budget contribution also fell 10 percent year-on-year to VND108 trillion ($4.66 billion), a report on the government news portal says.

PVN has said that it continued to face many difficulties last year, especially with financial regulations. Its restructuring plan for the 2019-2025 period, which it has completed, is yet to be approved by competent authorities.

PVN was Vietnam’s most profitable enterprise in 2018, topping the Profit500 list with consolidated pre-tax profits of VND50.6 trillion ($2.18 billion).

But earlier last year, the state-run oil and gas group faced major scrutiny when the Ministry of Industry and Trade published a report stating that 11 of Petrovietnam’s 13 foreign oil and gas exploration and extraction projects were at risk of losing their investment.

PVN’s 2020 revenue is projected to surpass VND640 trillion ($27.63 billion).