At the mid-year review conference, deploying the tasks for the last 6 months of 2024 of the Vietnam Oil and Gas Group (Petrovietnam), General Director of Petro Vietnam Gas Joint Stock Corporation (PV GAS) Pham Van Phong stated that PV GAS is implementing solutions to boost gas market development to ensure growth targets, especially in the current period when mechanisms and policies related to LNG are not yet complete.
In the first half of 2024, PV GAS is implementing production and business activities under challenging and difficult conditions. The global situation continues to be complex, with Brent oil prices and gas products like LPG, LNG fluctuating significantly and unpredictably. Domestic gas supply in the first 6 months decreased sharply, only reaching 83% compared to the same period in 2023, especially gas volumes in the Southeast region decreased deeply, just 77% compared to the same period, with a 23% decline rate, doubling the initial forecast of only around 10 - 15%. The total gas volume supplied to the shore in the first 6 months of 2024 decreased by 700 million m3 compared to the same period last year, corresponding to a revenue decrease of 5 trillion VND and a profit decrease of around nearly 1,000 billion VND. The rapid changes in the energy market, along with the policy framework for the gas industry, especially in LNG, are still in the process of being finalized.
Facing that situation, the leadership of PV GAS has persistently made efforts, determined to focus intensively on implementing safe, stable, efficient, and growing business activities compared to the same period.
Among these, there are some notable results such as:
First, PV GAS has officially put the LNG Thị Vải warehouse into operation, importing 330 million m3 of LNG to serve domestic demand; providing 240 million m3 of recycled LNG for power plants to produce over 1.2 billion kWh of electricity, contributing to ensuring electricity supply during peak dry season, marking the milestone of the first use of imported LNG for electricity production in Vietnam, as well as supplying LNG to industrial customers.
Secondly, PV GAS has gradually implemented a business model transformation to fully leverage the advantages of the Corporation, in line with the new market situation and international business practices. Most business units have achieved positive results, especially PV GAS's LPG business volume has reached the highest growth rate to date, reaching 1.5 million tons in 6 months, a 38% increase compared to the same period; revenue from LPG business has reached 1 billion USD, an increase of 9 trillion VND compared to the same period in 2023, with exports and international business reaching over 11 trillion VND. Currently, LPG business revenue accounts for 40% of the total revenue of the Corporation and 50% of the revenue of the Parent Company.
On Tuesday, PV GAS has comprehensively completed all the governance plan targets (GPT) assigned by the Corporation. The total revenue of PV GAS reached 64.5 trillion VND, equal to 111% of the GPT, a 12% increase compared to the same period, ranking second in the Group. Pre-tax profit exceeded 6 trillion VND, equal to 129% of the GPT and ranked third in the Group.
Although facing many difficulties and challenges in the first 6 months of 2024, PV GAS continues to make efforts to effectively implement synchronized solutions in business operations, focusing on solutions such as: (i) personnel work, especially in a volatile business environment like the current period, requiring leaders to be proactive, adaptable, sharp and make timely decisions; (ii) managing changes, seeking new motivations, renewing old motivations, and at the same time the philosophy of "speak truth, do truth, and be truly effective" has been fully implemented throughout the leadership team and employees of PV GAS – the successful supply of LNG to EVN recently is evidence of resolute implementation of the business model transition from specialized gas product to an integrated business model and providing energy solutions to fully exploit the competitive advantages of PV GAS.
Summarizing the work of the first 6 months, deploying the tasks of the last 6 months of 2024 of the Vietnam Oil and Gas Corporation
With the picture of the domestic gas supply in the coming time, in line with the country's energy development master plans and commitments, PV GAS has identified that investing in infrastructure and developing LNG business will be the main driving force of PV GAS in the future, alongside optimizing the use of national resources. However, LNG is a new business field in Vietnam, LNG business activities depend on and comply with the regulations of the world market, therefore specific mechanisms and policies are required to minimize risks for the LNG business chain.
In the current period, mechanisms and policies 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 government strategies, PV GAS has, is, and will continue to implement solutions to develop the LNG market. Specifically: Actively propose to competent authorities and participate in the process of building necessary policy mechanisms for investment, infrastructure development, and LNG business, especially for LNG business for power generation; Implement the market development strategy for gas in line with the Group's direction, including building mechanisms to prioritize domestic gas sources for processing; Transform PV GAS's gas business model into an integrated business model to create advantages and mechanisms for developing LNG business for industrial customers; Focus resources on business development to drive PV GAS, including continuing to develop international LPG/LNG business to enhance position, offset revenue, maintain growth for PV GAS in the short and medium term due to declining domestic gas production.
In the beginning, PV GAS successfully brought LNG products to the market, supplying to power generation and industrial customers, but there are still many difficulties and challenges ahead, and some tasks that must continue to be carried out in the future are still very burdensome. The entire PV GAS team believes that, with the support of Petrovietnam, the relentless perseverance of PV GAS, along with the unity, solidarity, and consensus of the staff, PV GAS will once again prove to seize the opportunity, develop, and lead the LNG gas market in Vietnam; at the same time, ensuring the sustainable growth and development of PV GAS in the future.
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