Flexible governance helps PetroVietnam stay resilient to uncertainties
Thanks to flexible governance measures, especially the governance of uncertainties, the Vietnam Oil and Gas Group (PetroVietnam) has stayed resilient to oil price fluctuations and the COVID-19 pandemic’ impacts over the last three years.
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| Workers of the Binh Son oil refinery. (Photo: VNA) |
Talking to Vietnam News Agency, Director General of PetroVietnam Le Manh Hung said as one of the largest enterprises in the country, the firm operates in five main areas, namely oil and gas exploration and exploitation, the gas industry, the electricity - renewable energy industry, petroleum processing, and petroleum technical services.
Its key products serve essential needs during socio-economic development, including crude oil, fuel gas, electricity, oil, and fertiliser.
He said as a specialised firm with the double role of representing the State to manage oil and gas-related activities and operating under the market mechanism, PetroVietnam has always worked to ensure timely adaptation to uncertainties and capitalise on development opportunities. Leaders of its subsidiaries have proactively made forecasts, built scenarios, and aligned production and business plans with the reality.
Despite impacts of the COVID-19 pandemic, the firm fulfilled the targets for 2020, with total revenue topping 566 trillion VND (23.9 billion USD at the current exchange rate), 83 trillion VND contributed to the State budget, and over 19.9 trillion VND in consolidated profit.
In 2021, its total revenue stood at over 640 trillion VND, budget contribution 112.5 trillion VND, and consolidated profit almost 52 trillion VND - the highest since 2015.
The year 2022 is predicted to be a new milestone of the group in terms of financial, production, and business performance, he noted.
Since the beginning of 2022, the crude oil output has exceeded the annual target by 22%, equivalent to that in the same period last year, thanks to the application of governance measures and scientific and technological advances.
Oil refining and fertiliser production have respectively surpassed targets by 8% and 9% while gas and electricity supply has met market demand.
Besides, earnings from business activities in international markets have also contributed to the fast growth in revenue and financial figures in the first seven months, Hung said.
The executive added that amid the Fourth Industrial Revolution that is taking place strongly, digital transformation holds strategic importance to every enterprise to improve their operational efficiency and competitiveness.
PetroVietnam set up a steering board for digital transformation in 2019 and hired consulting firms to draft a digital transformation vision and strategy. The group has finished building the vision with a long-term overall roadmap, expected to step up its business model change and digital transformation.
It has managed to digitalise all processes and database while applying artificial intelligence to the governance system optimisation, data analysis, plan making, and management and maintenance of industrial factories, he went on.
Hung pointed out that adverse factors are forecast for the remaining months of 2022 such as declined oil prices, low demand in the market, and global economic recession. In particular, big economies like the US, China, and the EU are likely to experience surging interest rates and inflation while the Russia - Ukraine conflict continues, which will result in narrowed production, contracted exports, and shrunken demand for power and gas.
Given this, PetroVietnam will have to push ahead with uncertainty governance, build backup plans, and capitalise on chances to achieve the highest possible production and business results in 2022 and gear up for next year, he noted.
In addition, the Director General said, it will keep good governance over the production system and financial affairs, speed up major projects like the Thai Binh 2 thermal power plant so that this plant can become operational this year.
For 2023, the group will continue consolidating and reforming governance activities, with a focus on uncertainty governance and digital governance, boost the capitalisation of resources to strongly invest in major projects, and expand international investment and business ties, focusing on Southeast Asia, Russia, the Middle East, and North America, according to Hung.
(Source: VNA)
