Petrovietnam’s President & CEO visits PV GAS
The President and CEO of the Vietnam Oil and Gas Group (Petrovietnam), Le Ngoc Son, and his delegation recently had a working session with Petrovietnam Gas Corporation (PV GAS) to review the performance of 2024’s H1, discuss tasks for the second halfand outline development directions for the future.
Mr. Le Ngoc Son hosted the working session with PV GAS
At the working session, it was reported that the production and business facilities were operated with absolute security and safety. PV GAS imported four LNG shipments for electricity production during the peak dry season, helping to compensate for the rapid decline in domestic gas supply. LPG sales reached the highest level ever, increasing by 38% year-over-year (YoY). Revenue from LPG sales hit the $1 billion mark, up nearly VND 9,000 billion YoY, with export and international business contributing over VND 11,000 billion, offsetting the revenue decline from domestic gas sources. Investment and construction activities were actively implemented, with disbursement value reaching 124% of the six-month plan.
Chairman of PV GAS Board of Directors Nguyen Thanh Binh reporting at the session
With these results, all the targets assigned by the Group had been achieved. The Corporation’s total revenue reached 111% of the six-month management plan, up 12% compared to the same period last year, ranking second within the Group. Pre-tax profit reached 129% of the six-month management plan, placing PV GAS third in the Group.
Participants also highlighted the challenges they had been facing. They identified key tasks and solutions to ensure the completion of management plans for the second half of the year and for 2024, along with directions for sustainable development. Notably, the rapid decline in domestic gas supply was occurring faster than anticipated. Core difficulties also included regulatory and policy obstacles in investment, production, and business activities, which directly impacted PV GAS' operations and the execution of its strategic development directions.
PV GAS identified business development and market expansion as short-term drivers, while simultaneously pursuing green transition and development goals in the medium to long term. LNG would serve as the foundation and key product for PV GAS in the future.
This approach aligned with the objectives outlined in Power Plan VIII and the development directions for the gas industry as per the Politburo's Conclusion 76-KL/TW.
PV GAS President & CEO Pham Van Phong reporting the production and business activities at the unit.
To support its production, business activities, and investments, PV GAS requested assistance in working with local authorities to implement LNG storage projects in Northern and Central Vietnam. Additionally, the Corporation sought support in collaborating with relevant Ministries, sectors, and enterprises on issues related to LNG business mechanisms, gas prices, tariffs, gas purchase and sale contracts, gas mobilization, and payment of due gas fees.
Mr. Le Ngoc Son highly praised PV GAS for achieving the management targets set by the Group for the first six months of the year. He acknowledged the Corporation as a leading unit within the Group in terms of revenue and profit contribution. Additionally, he analyzed the revenue and profit structure, foreseeing changes in this structure moving forward, along with shifts in the quality of PV GAS' production and business activities. This analysis emphasized the need for business model transformation and adjustments to align with appropriate strategies.
Overview of the Session
PV GAS' proactive approach in analyzing the current situation, assessing future challenges, and developing directions and strategies for sustainable development was highly agreed and appreciated. Recognizing the intertwined risks and opportunities in both the short and long term for the Corporation’s growth, Mr. Le Ngoc Son emphasized the need for PV GAS to continue leading in infrastructure and LNG business development, sustain growth momentum, enhance LPG business operations, and develop hydrogen in conjunction with the Group's renewable energy value chain. He also highlighted the importance of aligning the strategies with the Group's vision through 2030 and beyond to 2050, while continuing efforts to address policy obstacles in production and business activities.