13:00 | 05/05/2020 Companies
(VEN) -?The spread of Covid-19 and tumbling oil prices have posed difficulties for the Vietnam Oil and Gas Group (PVN) and its subsidiaries. However, trade and production growth in the first quarter of the year is expected to create a momentum for PVN and its subsidiaries to minimize the impact of the pandemic in order to complete this year’s targets.
Strong first quarter
The spread of Covid-19 and a sharp decline in oil prices have greatly affected trade and production activities of PVN and its subsidiaries, the state-owned group responsible for all oil and gas resources in the country and the country's largest oil producer and second-largest power producer. Tumbling oil prices have resulted in a loss in revenue, while the pandemic has affected the supply of equipment and materials for a series of projects, leading to delays. PVN’s services, such as drilling, transportation, fertilizers and chemicals have also been affected.
PVN and its subsidiaries have implemented solutions to maintain trade and production activities, minimize the impacts caused by the pandemic and protect the health of its workers.
PVN basically completed the targets set out for March and the first quarter of 2020. Specifically, total volume of oil and gas exploitation exceeded the March target by 8.1 percent and the quarterly target by 10.1 percent, equivalent to 26.6 percent of the yearly plan. Electricity production reached 2.097 billion kWh in March and 5.33 billion kWh in the first quarter of the year, equal to 24.7 percent of the yearly plan. Fertilizer production stood at 136,900 tonnes in March and 441,800 tonnes in the first quarter of the year, equal to 28.3 percent of the yearly plan. Petroleum production reached 1.149 million tonnes in March and 3.415 million tonnes in the first quarter of the year, 1.7 percent and 2.5 percent more than targeted, equal to 28.9 percent of the yearly plan.
Working from home
To complete the set targets, PVN leaders have issued instructions and plans for Covid-19 prevention and control, requiring units to focus on inspecting facilities, monitoring human resources and work conditions especially for employees at crowded sites.
Following the call of the general secretary and president, and the instruction of the prime minister, PVN has allowed officials and employees to work at home in order to restrict movement, contact and reduce the number of people at the office.
PVN and its subsidiaries have focused on essential business activities, while cancelling meetings and conferences, reducing costs and saving expenses by applying new technologies and improving labor productivity. The units have also coordinated closely with each other to share market information and resources in order to optimize the efficiency of the value chain.
PVN has directed its members to forecast market trends, and build scenarios for petrol and oil production, inventories and transportation.
Thanks to these efforts, the group’s total revenue reached VND49 trillion in March and VND165 trillion in the first quarter of the year, while its contribution to the state budget stood at VND6.5 trillion in March and VND20.8 trillion in the first quarter of 2020.
|PVN will continue to implement solutions in the coming months, including cost reductions and resource optimization. The group will also review and adjust its trade and production targets in 2020 in accordance with the new situation, develop scenarios to cope with risks and minimize the impacts caused by the pandemic and tumbling oil prices, strengthen information sharing, and take advantage of the strengths of member units to complement each other in the supply of raw materials for production.|