PVN’s General Director Le Manh Hung reviews PV GAS’s business performance in 2023
On June 15th, Mr. Le Manh Hung - General Director of Petrovietnam, had a meeting with PV GAS with the topic of the company’s business performance for the first 6 months of 2023 and implementation of the business plan for the second half. Assisting with Mr. Le Manh Hung, on PVN’s side, there were Mr. Tran Binh Minh – Member of the Board of Members, Mr. Do Chi Thanh and Mr. Le Xuan Huyen – Deputy General Directors with representatives of the Group’s divisions joining online.
Attending the meeting, on PV GAS’s side, there were Mr. Nguyen Thanh Binh – Chairman of the Board of Directors, Mr. Pham Van Phong – General Director, members of the Board of Directors, the Board of Management and representatives of the company’s divisions and owner and subsidiary units.
Beginning the meeting with the presentation of PV GAS’s business performance in 2023’s first half, Mr. Pham Van Phong indicated that the market had witnessed continuous adverse decreases in the Indexes of Industrial Production, in which those of Brent oil prices and Contract prices were most concerned, ultimately causing formidable obstacles to the company’s production and business operations. Although under those circumstances, PV GAS was able to carry out solutions to mitigate the impacts of the mentioned unfavorable factors and had landed positive results. PV GAS's production and business facilities had ensured continuous and safe operations, providing approximately 4.14 BCM of dry gas, surpassing the planned target by 104%. LPG sales volume reached over 1.06 million tons, exceeding its target by 115%, and helping PV GAS to become dominant in the LPG market with 70% market share and maintain their gas supply to produce 70% of the country's urea volume. Moreover, the company succeeded in achieving 102% of what was expected in terms of gas supply for electricity generation, significantly of great help to meet the electricity demand during the peak dry season.
A point worth noticing is that PV GAS had also actively been implementing many promising investment projects, including the construction of the following facilities: 1-million-ton Thi Vai LNG warehouse, Son My LNG Warehouse, Ethane Separation at Dinh Co, LNG tanker refueling station in Thi Vai, LPG storage tank in Thi Vai, refrigerated LPG/LNG storage in the North, and the expansion of Thi Vai LNG storage to 3 million tons per year. This marked the end of the ongoing part and switched the focus onto 2023’s second half topic.
To ensure the completion of assigned plans and targets for the rest of the year, measures to PV GAS’s production and business operations, construction investments, as well as management restructuring were presented. PV GAS would focus on closely controlling and optimizing the entire production and business processes with effective asset management. Collaboration with EVN/A0 to increase gas consumption during the rainy season and the expansion of the non-electricity gas market of PV GAS (both domestic and international) were also mentioned. Furthermore, the company was in the middle of establishing economic and technical standards for operation and maintenance in the LNG sector. Ending the presentation, PV GAS sought the Group’s support in working with competent authorities on gas business models, mechanisms for LNG products and policies related to gas prices, and transportation fees.
In the next part of the session, representatives of the PVN, who came from functional divisions of the group, took turns discussing PV GAS’s areas for improvement and Mr. Le Manh Hung concluded the meeting with valuable feedback, suggestions and directions for PV GAS and its units.
Petrovietnam’s General Director highly appreciated the achievements of PV GAS in the first 6 months of the year and its great efforts in the context of many unfavorable impacts from the market and macro-economy. With the desire for PV GAS to become a sustainable-development enterprise, Mr. Hung suggested that PV GAS unify its goals to allocate and optimize resources in order to achieving its set objectives.
The General Director of the Group asked PV GAS to continue safe and stable operation of its business activities. Some of his suggestions were: regularly get updates on macroeconomic policies and market fluctuations, improve the internal management system combined with enhancing digital transformation and ERP implementation, promote business activities to increase scale and operational efficiency, including the establishment of Singapore branch to expanse international markets, focus on the successful trial run of Thi Vai LNG warehouse and the LNG business model, review and improve asset management and capital sources to optimize cash flow for business operations and eventually address existing issues both of the company and its units as one of the important steps to complete the restructuring process.
In addition to consolidating and expanding traditional product lines, PV GAS also needed to execute research on new products in line with energy transition trends such as hydrogen, and ammonia, strengthen value chain linkages with potential partners such as BSR and NSRP and existing ones within the Group, develope service products within the gas value chain and follow other directions given by Mr.Hung.
The General Director of the Group expressed strong confidence that, with PV GAS’s existing strengths, along with the motivation and spirit of the newly-formed high-level leadership team, PV GAS would successfully fulfill the directions in 2023 as well as the set goals and strategies.