At the Conference summarizing the work of the first 6 months of the year and implementing the tasks of the last 6 months of 2024 of Vietnam Oil and Gas Group (Petrovietnam), General Director of Vietnam Gas Corporation (PV GAS) Pham Van Phong said that PV GAS is implementing solutions to promote gas market development to ensure growth goals, especially in the current period when mechanisms and policies related to LNG have not been completed.
In the first half of 2024, PV GAS deploys production and business activities in conditions that are still difficult and challenging. The world situation continues to be complicated, the price of Brent oil and LPG and LNG gas products fluctuates with large amplitudes, difficult to forecast. Domestic gas supply in the first 6 months of the year decreased sharply, only 83% compared to the same period in 2023, especially gas output in the Southeast region decreased sharply, only 77% compared to the same period, with a decline rate of 23%, double the forecast from the beginning of the year of only about 10 - 15%. Total gas output supplied to shore in the first 6 months of 2024 decreased by 700 million m3 compared to the same period last year, corresponding to a decrease in revenue of 5 trillion VND and a decrease in profit of nearly 1,000 billion VND. The rapid change in the energy market, along with the policy mechanism for the gas industry, especially LNG, is still in the process of being completed.
Faced with that situation, PV GAS' leadership team has persevered in its efforts and determination to focus highly on implementing safe, stable, effective production and business activities and growth over the same period.
Some outstanding results include:
Firstly, PV GAS has officially put the Thi Vai LNG Terminal project into business, importing 330 million m3 of LNG to serve domestic needs; Providing 240 million m3 of regasified LNG to power plants to produce over 1.2 billion kWh of electricity, contributing to ensuring electricity supply during the peak dry season, and marking the milestone of imported LNG being used for the first time to produce electricity in Vietnam, as well as supplying LNG to industrial customers.
Second, PV GAS has gradually transformed its business model to take full advantage of the Corporation's advantages, in accordance with new market situations and international business practices. Most business units achieved many positive results, especially PV GAS's LPG business output reached the highest growth rate ever, reaching 1.5 million tons in 6 months, an increase of 38% over the same period; Revenue from LPG business reached 1 billion USD, an increase of 9 trillion VND over the same period in 2023, of which export and international business reached more than 11 trillion VND. Currently, LPG business revenue accounts for 40% of the Corporation's total revenue and 50% of the Parent Company's revenue.
Third, PV GAS has completely completed the management plan targets assigned by the Group. PV GAS's total revenue reached 64.5 trillion VND, equal to 111% of the international plan, growing 12% over the same period and ranked 2nd in the Group. Pre-tax profit reached over 6 trillion VND, equal to 129% of the international plan and ranked 3rd in the Group.
It can be said that, despite many difficulties and challenges in the first 6 months of 2024, PV GAS continues to strive to synchronously and effectively implement solutions in production and business activities, focusing on solutions on: (i) staff work, especially in a volatile business environment like the current period, requiring leaders to be dynamic, adaptive, sensitive and make timely decisions; (ii) the work of managing fluctuations, finding new motivations, renewing old ones, at the same time, the mindset of "telling the truth, doing the truth and being truly effective" has been thoroughly grasped to the entire leadership team and employees of PV GAS - the recent success in supplying LNG to EVN is a drastic proof of implementing the transformation of the business model of each specialized gas product to an integrated business model and providing energy solutions to fully take advantage of competitive advantages. of PV GAS.
Conference to summarize the work of the first 6 months of the year, deploying tasks in the last 6 months of 2024 of Vietnam Oil and Gas Group
With the picture of domestic gas supply in the coming time, in accordance with the country's plans and commitments on energy development, PV GAS has determined that infrastructure investment and LNG business development will be the main driving force of PV GAS in the coming time, in parallel with optimizing the use of national resources. However, LNG is a new business field in Vietnam, LNG business activities depend on and comply with world market practices, thus requiring specific mechanisms and policies to minimize risks for the entire LNG business chain.
In the current period, policy mechanisms related to LNG in Vietnam have not been completed. However, affirming the position and role of Petrovietnam/PV GAS in ensuring energy for development, in implementing commitments and policies of the Government, PV GAS has been and will continue to implement solutions to develop the LNG gas market. Specifically: Proactively propose to competent authorities and participate in the process of building necessary policy mechanisms for investment, infrastructure development and LNG trading, especially for LNG trading for power generation; Deploy the gas market development strategy in accordance with the Group's orientation, including developing mechanisms to prioritize domestic gas sources for processing; Transforming PV GAS's gas business model to an integrated business model to create advantages and mechanisms for LNG business development for industrial customers; Concentrate resources and develop business to motivate PV GAS, including continuing to develop international LPG/LNG business, to enhance position, offset revenue, and maintain growth for PV GAS in the short and medium term due to decline in domestic gas output.
Initially, PV GAS has successfully brought LNG products to the market, supplying electricity production and industrial customers, but the road ahead still has many difficulties and challenges and the work that must continue to be done in the coming time is still very heavy. The PV GAS team believes that, with the support of Petrovietnam, the perseverance and continuous efforts of PV GAS, along with the consensus, solidarity and unanimity of the staff, PV GAS will once again demonstrate to seize opportunities, develop and lead the LNG gas market in Vietnam; At the same time, it ensures the sustainable growth and development of PV GAS in the future.