10 outstanding highlights of Petrovietnam in 2020

10 outstanding highlights of Vietnam National Oil and Gas Group in 2020.

The Party Committee of the Group had directed to organize successfully 987 congresses of Party committees, subordinate branches and the 3^rd congress of the Party Committee of Vietnam National Oil and Gas Group for the term 2020-2025 to ensure solemnity, safety, and practicality in the conditions of increasing Covid-19 epidemic prevention and control.

1. HIGHTLIGHT NO.1: successfully organized the 3rd congress of the Party Committee of Vietnam National Oil and Gas Group for the term 2020-2025

Highlight No .1

The congress was conducted under the motto: “Bravery – Responsibility – Solidarity – Innovation – Action”, through the Resolution defining the overall goal is: “Building a strong, comprehensive Party Committee and developing Vietnam National Oil and Gas Group to play a pivotal role, a key player, a leader with strong financial potential and advanced science and technology; having high competitiveness, successfully implementing the Petroleum Industry Development Strategy. Focus on developing the main production and business fields: oil and gas exploration and exploitation, gas industry, oil and gas processing, electricity and renewable energy industry, high quality oil and gas technical services. Preserve and develop capital sources; associate production and business activities with environmental protection, national defense and security and protection of national sovereignty at sea ”.

2. HIGHTLIGHT NO.2: spectacularly surpassed the double crisis due to Covid-19 pandemic and sharply decline of oil price by promptly developing and implementing effectively the solution package to response to the double impact

Highlight No.2

2020 is the most difficult year in the development history of Vietnam National Oil and Gas Group. Facing that situation, the Group actively assessed and had positive, drastic actions in response to the double impact; promptly issued a package of solutions to respond with clear and overall objectives for 5 groups: governance; market; finance; investment; mechanisms and policies; specified each operation field of the Group, focused on three areas that were most heavily affected: exploration and exploitation of oil and gas; oil and gas processing and high quality oil & gas technical services; consistent with the guiding motto “Managing fluctuations, optimizing values, promoting consumption, making efforts to overcome difficulties, seizing opportunities, and safely achieving goals”.

As a result, all activities of the Group were guaranteed to be safe. The whole Group had no cases of Covid-19 infection; financial security was guaranteed, cash flow was kept stable, achieved a much better profit than the decline in oil prices; production and business activities were operated stably in the epidemic conditions. The Group reduced costs by VND 11,999 billion (exceeding 28.9% of the year plan). While most of the major oil and gas corporations/ companies in the world suffering from losses or bankruptcy, Petrovietnam was one of the few oils and gas companies with spectacular and positive profits to overcome difficulties in the double crisis.

3. HIGHTLIGHT NO.3: exceedingly achieved many important targets of 2020

Highlight No.3

Oil and gas exploitation were optimized, in accordance with technical conditions, at the same time minimizing economic losses when oil prices plummeted. Some important targets of the Group had reached the target of the whole year from 19 days to 6 months (Increase reserves, exploit oil, produce fertilizer, petroleum products…). The Group’s financial indicators achieved more positive results compared with the decline in oil prices and the negative impact from the Covid-19 pandemic. The total revenue of the Group reached VND 566 trillion; total consolidated pre-tax profit was VND 17.5 trillion; completed the budget contribution plan (VND 82.1 trillion), making an important contribution to the country’s GDP growth and State budget balance. Most of the production units exceeded the planned output targets; 12 units completed and exceeded the target of consolidated profit before tax target; 18 units completed and exceeded the plan to submit to the State budget target.

4. HIGHTLIGHT NO.4: corporate governance system of the Group was strengthened and completed

Highlight No.4

The Group had standardized and officially issued the Management Regulations in the form of E-Book (applied from July 1, 2020); deployed digital signature and ERP project, progressed to apply throughout the Group.

From the renovation and improvement of corporate governance efficiency, Petrovietnam continued to be rated BB + by the International Credit Rating Organization Fitch Ratings; was rated 10 consecutive years in the Top 500 largest enterprises in Vietnam by Vietnam’s top rating organizations and for 3 consecutive years at the top of the Top 500 most profitable enterprises in Vietnam.

5. HIGHTLIGHT NO.5: had new oil & gas exploration, increased oil & gas reserves to the highest level since 2016 up to now

Highlight No.5

The discovery of oil and gas reserves at the Ken Bau field located in Lot 114 (reaching over 11.86 million tons equivalent), along with the contribution to increase reserves from the fields of Bach Ho, Thien Nga, Ca Tam helped the target of increasing the reserves fully achieved right from the beginning of June 2020 – the first time to offset the exploitation output since 2016 up to now. Most recently, on December 25^th 2020, the SV-1X exploration well at the Soi Vang structure, block 16-1/15 received an industrial oil flow with a flow of 560 m3/day, which was good news in the year-end day, to compensate for non-stop efforts of oil and gas workers in 2020.

6. HIGHTLIGHT NO.6: project investment and oil & gas projects implementation achieved positive results
   

Highlight No.6

The positive results from Dinh Vu Polyester Refinery of VNPOLY in recent years had been recognized and appreciated by the Government. In 2020, VNPOLY cooperated with SSFC partner for a long-term master plan. By December 2020, the plant had operated 15 DTY lines and would operate all 27 DTY lines in the first quarter of 2021. Quality AA products reached about 89.5%, higher than the level agreed under a cooperation contract (85%). DTY products were made from renewable, eco-friendly materials and were certified the global recycling standards by the Control Union Organization which have been used by a number of major brands such as Adidas, Target.

In 2020, DQS received 32 orders, nearly twice as much as in 2019; in which, orders from outside the industry and abroad accounted for 66%. This proved that DQS’s capacity were been enhanced, and customers’ confidence in DQS was increasing.

Petrovietnam actively proposed to remove difficulties and problems and was approved by the competent authorities to continue implementing the Thai Binh 2 Thermal Power Plant project.

7. HIGHTLIGHT NO.7: subordinate units and projects with difficult situation had positive progress

Highlight No.7

The positive results from Dinh Vu Polyester Refinery of VNPOLY in recent years had been recognized and appreciated by the Government. In 2020, VNPOLY cooperated with SSFC partner for a long-term master plan. By December 2020, the plant had operated 15 DTY lines and would operate all 27 DTY lines in the first quarter of 2021. Quality AA products reached about 89.5%, higher than the level agreed under a cooperation contract (85%). DTY products were made from renewable, eco-friendly materials and were certified the global recycling standards by the Control Union Organization which have been used by a number of major brands such as Adidas, Target.

In 2020, DQS received 32 orders, nearly twice as much as in 2019; in which, orders from outside the industry and abroad accounted for 66%. This proved that DQS’s capacity were been enhanced, and customers’ confidence in DQS was increasing.

Petrovietnam actively proposed to remove difficulties and problems and was approved by the competent authorities to continue implementing the Thai Binh 2 Thermal Power Plant project.

   8. HIGHTLIGHT NO.8: subordinate units and projects with difficult situation had positive progress

Highlight No.8

The Group took the initiative and made efforts to overcome difficulties, paid the State budget in excess of the planned targets, in the unfavorable conditions of 2020. The Group’s operations were stable and continuous; In the context of epidemics, the global supply chain breakage has provided essential products for the economy such as electricity, petroleum, nitrogen, LPG, CNG … actively supporting other economic sectors to develop together… Despite the difficult period, the Group also spent hundreds of billions of dongs to implement social security work.

Through the implementation of marine oil and gas programs, activities, and projects in 2020, made an important contribution to maintaining security and defense.

9. HIGHTLIGHT NO.9: had important progress in implementing the Petrovietnam Culture Regeneration

Highlight No.9

Created a strong, synchronous and unified change in awareness and action on strengthening and building Petrovietnam Culture. Organized the basis cultural training for all officers and employees of the Group’s agencies and key staff of units and unions. Synchronously implemented the Project of cultural regeneration from the Group’s offices to member units, attached the role and position of corporate culture in the implementation of Petrovietnam’s strategic goals.

10. HIGHTLIGHT NO.10: digital transformation and IT application in management brought back high effectiveness.

Highlight No.10

In 2020, the Group had synchronously implemented the overall strategy, plans and programs on digital transformation; built large database for fields of activity, especially E&P. Connected, combined and strengthened technology infrastructure to maximize the use of the Group’s digital resources. Through the application of information technology and digitalization to organize online conferences, seminars and transactions, the whole Group had saved VND 727 billion. Application of information technology in management such as meetings through MS-Team; handling work through Idoc, internet … has gradually become a habit and culture of oil and gas workers, helping to improve the Group’s work handling speed and efficiency.