Petrovietnam reports 26 percent hike in revenues last year

The state-run giant (Petrovietnam or PVN) reported revenues of VND626.8 trillion ($26.92 billion), 18 percent higher than the target and a year-on-year rise of 26 percent.

As of December 10 it had achieved its domestic crude oil production target of 11.31 million tons. Total oil and gas output reached 23.98 million tons (gas converted into oil equivalent).

The group contributed VND121.3 trillion ($5.22 billion) to the state coffers, exceeding the target by 64.3 percent and 24.3 percent more than the previous year.

"These achievements came at a time when global oil price movements were difficult to predict, production in mature fields were in rapid decline while new fields brought on stream were small and marginal and there was pressure to minimize costs per barrel," CEO Nguyen Vu Truong Son said in the company’s 2018 business performance report.

Petrovietnam's CEO Nguyen Vu Truong Son

Last year the group wrapped up equitization of three of its subsidiaries: PetroVietnam Power Corporation (PV Power), Vietnam Oil Corporation (PVOIL) and Binh Son Refinery and Petrochemical Joint Stock Company (BSR).

These are large enterprises with the state equity estimated at VND89 trillion ($3.83 billion), according to auditors' conclusion.

The proceeds from their IPOs reached VND16.5 trillion ($710 million). Petrovietnam managed to raise VND18.6 trillion ($801 million) from the three firms' equitization and state divestments.

Petrovietnam has succeeded in merging its Party units with relevant technical departments alongside organizational restructuring and personnel reform that aim at objectives of the next stage. The Petroleum Culture Handbook has been issued, specifying ethical norms for Petrovietnam leaders and managers.

Nghi Son Refinery and Petrochemical Complex is one of Vietnam's national key oil and gas projects.

In late last year, the $9 billion Nghi Son Refinery and Petrochemical Complex, one of the key national oil and gas projects, began commercial operation.

With a capacity to process 200,000 barrels of crude a day, it, along with Dung Quat, can meet more than 80 percent of the country’s petroleum demand, reducing dependence on imports.

Situated in the Nghi Son Economic Zone, 200 km south of Hanoi in the central province of Thanh Hoa, Nghi Son is invested by Idemitsu Kosan Co, Kuwait Petroleum, Petrovietnam and Mitsui Chemicals Inc.

Some weak projects have seen positive changes. The Dinh Vu Polyester Plant (PVTEX) has produced 2,200 tons of quality DTY yarn products in six months after it resumed operations. The Dung Quat Bio Ethanol Plant is functional again and Binh Phuoc Biofuel Plant is ready to resume operations.