Through the "eye of the storm"
Over the past six decades, Petrovietnam has gone through many proud stages of development but has also faced many challenges and hardships. In particular, the oil price crisis from 2015 to 2019 was one of the most difficult periods for the Oil and Gas industry. Oil prices plummeted from over 100 USD/barrel to below 30 USD/barrel, severely affecting the Group's production and business activities.
In the face of continuous difficulties, with the attention, direction, rectification and support of the Party and State leaders, Petrovietnam has carried out a comprehensive reform.
The first is the restructuring of the Group's management apparatus. It can be affirmed that Petrovietnam is a state-owned enterprise that has pioneered the restructuring of the management apparatus in the direction of "streamlining - efficiency". The restructuring started in 2018 and after only 1 year, the number of focal departments/offices in the Group's apparatus was reduced by nearly half. Many officials had to change their positions, or from high positions to low positions, but there were absolutely no negative internal problems, no prolonged complaints. Because, thanks to the participation of the entire political system in the Group, everyone understands: Only building a streamlined and streamlined management apparatus can be effective in operation, and that is essential for the Group to develop sustainably.
Another strategic breakthrough is the project “Regenerating Petrovietnam culture” with the goal of regenerating a leading culture to consolidate and create momentum for business regeneration.
Only by building a corporate culture with the identity of the oil and gas industry “Aspiration – Intelligence – Professionalism – Loyalty” can we create discipline, order and team spirit, thereby building a professional and effective working environment. This is not only an important strategy to restore and strengthen internal trust but also creates a strong driving force for the Group’s comprehensive innovation.
The Power of “One Team – One Goal”
The challenges did not stop when the Covid-19 pandemic broke out in 2020, causing unprecedented disruptions in the global supply chain. At the same time, geopolitical fluctuations and the global economic recession put great pressure on the Group's business operations. Petrovietnam had to quickly adapt and come up with creative solutions to survive and develop. Petrovietnam has proactively innovated its governance, especially fluctuation management, improved operational efficiency and shifted its business model, steadily weathered the storm, completed all aspects of production and business activities, and achieved the goal of recovery and outstanding growth compared to the period before the Covid-19 pandemic.
Thanks to solidarity and continuous efforts, Petrovietnam has overcome the dual crisis of falling oil prices and the Coid-19 pandemic and achieved impressive results from 2020 to present.
As of December 31, 2023, Petrovietnam's total consolidated assets increased by 19% compared to 2020, reaching over 1 million billion VND; total revenue increased by 81% compared to 2020, contributing an average of 9-10% of the country's GDP annually. In 2023 alone, Petrovietnam's contribution to the state budget increased by 83% compared to 2020, accounting for an average of 9-9.5% of the total national budget revenue annually.
From 2020 to the end of June 2024, Petrovietnam achieved a total revenue of VND 3.6 million billion, paid nearly VND 600 trillion to the State budget, and consolidated pre-tax profit reached VND 230 trillion. Notably, the Group has successfully completed two years ahead of schedule the financial targets for the 2021-2025 period assigned by the Prime Minister.
In the production sector, Petrovietnam maintains an average crude oil production output of 7.5-8.5 million tons/year, and gas production of 6-8 billion m³/year. The Group supplies more than 13.5 million tons of gasoline and oil each year, meeting about 70% of domestic demand. In addition, Petrovietnam also produces 1.6-1.7 million tons of nitrogen fertilizer, meeting 70-80% of domestic demand, contributing to ensuring national food security.
In the energy sector, Petrovietnam is currently safely and stably operating 9 power plants with a total capacity of over 6,600 MW, accounting for about 8.5% of the total installed capacity of the national power system. Petrovietnam's key products such as crude oil, natural gas, liquefied petroleum gas, electricity, and nitrogen fertilizer have become an indispensable part of all socio-economic activities of the country.
In particular, during this period, many key projects of Petrovietnam were put into operation, serving the country's socio-economic development. The biggest mark in this period was the miraculous "revival" of the Thai Binh 2 Thermal Power Plant Project after a long period of stagnation. This success is the most vivid proof of the spirit of "one team - one goal".
Besides Thai Binh 2, there are also a series of other key projects of Petrovietnam that have been gradually overcome difficulties and put into operation such as Song Hau 1 Thermal Power Plant, Thi Vai LNG port warehouse, Nhon Trach 3 - 4 Thermal Power Plant, EPC contracts for mine development projects in the Block B gas - power project chain...
It can be affirmed that the success of Petrovietnam cannot be separated from the value of corporate culture of solidarity and unity. “One team - One goal” is not only a slogan but has permeated every action and thought of all employees. This spirit has been clearly demonstrated in the most difficult times. When facing crises, all employees of Petrovietnam have worked together, shared responsibilities, and sought common solutions.
