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Suffering "double impact", the financial targets of PVN could not be achieved as planned

Suffering  - 

The Vietnam Oil and Gas Group (PVN) informed that its financial targets in the first quarter of 2020 could not reach as planned because of “double impact” from Covid-19 pandemic and low oil prices.

According to PVN, the outputs of the group main products in the first quarter of 2020 were as follows:

Oil production exceeded 10.1% quarter plan by and equaled 26.6% year plan; power generation reached 5.33 TWh, equaled 100% quarter plan and 24.7 % year plan; nitrogen fertilizer reached 441.8 thousand tons, exceeded 5.5% quarter plan and equaled 28.3% year plan; gasoline production reached 3.415 million tons, exceeded 2.5% quarter plan and equaled 28.9% year plan.

The average price of the crude oil in the first quarter of 2020 reduced 3.8 USD/barrel (nearly 6% against the year plan price as 60 USD/barrel) and 9.1 USD/barrel (nearly 14% against the average price in the first quarter of 2019 as 65.3 USD/barrel).

Under these heavy impacts, the total turnover of PVN in first quarter 2020 reached 165 thousand billion VND, equaled 89.7% quarter plan and 25.3% year plan; the payment to state budget was 20.8 thousand billion VND, equaled 89.7% quarter plan and 25.3% year plan.

It should be said that PVN is in the most difficult period in its history. Many units in the Group are suffering the risk of the imbalance or even losses if oil prices will not improve. The value chain of PVN will accordingly be seriously affected.

However, besides the difficulties and challenges, PVN has recognized the opportunity for it to accelerate fulfilling the unfinished investment projects, expand the scope and scale of investment, increase reserves through buying crude oil, or even buying the oil fields when oil prices going down, increase ownership in businesses with a good property and efficient operation.

PV.

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