PV GAS Reaping Many Successes Amid Challenging Year

2020 was an extraordinary year for the whole world as the Covid-19 pandemic seriously affected all aspects of social and economic life. The oil and gas industry also faced an energy crisis when oil prices plunged and stayed low for a long time, especially sliding to a negative level (-US$37 per barrel). Amid heaps of difficulties, PetroVietnam Gas Corporation (PV GAS) has affirmed its outstanding capacity and efforts, maintained stable production and business, and achieved positive results.

Successfully wrapping up the extraordinary year 2020

Like other companies in 2020, PV GAS fulfilled its business plans amid the complicated Covid-19 pandemic, which infected almost all countries and territories in the world. Oil prices plunged from February to April 2020 and stayed lower than expected. Brent crude was about US$41 a barrel (equal to 68% of the expected price of US$60 a barrel). Domestic production and consumption stagnated and fuel demand plummeted. Especially, the PV GAS’s gas products for power and industrial users decreased significantly.

Despite facing many disadvantages, with the motto "Solidarity - Innovation - Professionalism - Action", PV GAS's management and all employees are always united, innovative in thinking and professional in action to make good use of opportunities, drastically and effectively carrying out five groups of consistent solutions (governance, investment, finance, market and policy). Besides, with the active support from all levels and units inside and outside the gas industry, with the smooth and close coordination of operating stages from upstream to downstream, with contractors implementing the project, especially is the positive direction and support from PetroVietnam Group, ministries/governmental agencies, PV GAS has successfully implemented its tasks and planned targets with remarkable results.

All gas systems and works of PV GAS operated safely and efficiently and ensured an uninterrupted gas supply. PV GAS adopted good measures to prevent the Covid-19 pandemic. No infections were detected in the corporation. Maintenance, repair, inspection and calibration of gas projects were always conducted according to plans, procedures and quality. In particular, the annual maintenance of gas shutdowns was completed in August and September and brought the gas systems into operation ahead of schedule. Since the end of March 2020, PV GAS has increased gas supply from Thien Ung field to the shore, and since mid-April 2020, has increased the gas transportation capacity of PM3 - Ca Mau pipeline to 6.5 million cubic meters of gas a day, helping raise revenue/profit to about VND200 billion a month.

With these effective solutions, PV GAS has achieved a high output plan despite facing numerous difficulties due to the upstream incident and fierce competition on the LPG trading market. Specifically, nearly 9.1 billion cubic meters of wet gas was received, equal to 93% of the plan; 8.9 billion cubic meters of dry gas was supplied, equal to 96% of the plan; 1.9 million tons of LPG was produced and sold, fulfilling the plan three months ahead of the schedule; over 58,000 tons of condensate was produced and supplied, 6% higher than the plan. PV GAS continued to maintain a stable gas supply for producing nearly 20% of electricity output, 70% of fertilizer, and over 62% of the LPG market share.

Its financial targets have completed and exceeded the plan by 0-48% (revenue: over VND66 trillion, pre-tax profit: nearly VND10 trillion, and after-tax profit: nearly VND8 trillion). In particular, profit and tax payment were completed 2-3 months ahead of schedule, significantly contributing to the State Budget and PetroVietnam (VND4.4 trillion). PV GAS was a top financial performer in PetroVietnam (Return to equity (ROE): 16%, to registered: 41%, liabilities/total assets: 23%), a top-listed company by market capitalization, and a high rate of dividend in cash (30% a year).

Construction investment can be said to be a prominent highlight of PV GAS. In the past year, despite a lot of difficulties, PV GAS managed to actively adopt many breakthrough and effective solutions to compensate, limit and minimize the impact of the pandemic. As a result, PV GAS completed and operated the entire Nam Con Son 2 gas project in December 2020, completed the LNG 1 MMTPA warehouse project in Thi Vai ahead of schedule. The total disbursement value for the construction investment of the parent corporation reached VND6,752 billion, equal to 99% of the annual plan (if excluding Lot B-O Mon gas pipeline, PV GAS’s disbursement value reached 128% of the plan). The entire PV GAS invested VND6,842 billion in the year, the biggest annual investment so far.

With business performance and strong capacity, PV GAS is highly appreciated in the market. For the 8th time in a row, the corporation was named Top 50 best-listed companies in Vietnam in 2020 by Forbes; ranked 7th on Profit500 rankings - the list of the most profitable companies in 2020 by Vietnam Report in collaboration with the VietNamNet Newspaper, and won the Vietnam Value award - a recognition of 124 enterprises with national brand products announced by the Ministry of Industry and Trade in 2020.

New spirit - New opportunity

The Politburo’s Resolution 55-NQ/TW dated February 11, 2020 on the Vietnam National Energy Development Strategy to 2030, with a vision to 2045, which states key views, targets and solutions concerning the gas industry: “Prioritizing production and use of clean energy sources”, “prioritizing development of gas power”, thus outlining the direction and building the corridor to develop the gas industry into an important source of energy for the nation.

Defined as a pioneer in implementing the Vietnam Gas Industry Development Strategy and Master Plan, PV GAS has worked out a strong, efficient, highly competitive development strategy and completely operated all stages of gathering, transporting, processing, importing, exporting, storing, servicing and trading gas and gas products; and has taken part in upstream investment activities. PV GAS continued to effectively perform its key role of leading Vietnam's gas industry to develop rapidly and sustainably and integrate into the world.

PV GAS is currently carrying out a series of new gas projects, including the LNG value chain - a new gas product in Vietnam with LNG 1 MMTPA Thi Vai and LNG Son My projects, which will help diversify gas supply sources for the market in Vietnam and ensure national energy and food security in the future.

Closing a difficult year with impressive results, preparing to welcome the new year, with its fresh spirit and available resources plus the unanimity of all employees, PV GAS will steadily overcome all challenges and obstacles, adapt to new trends for sustainable development, and deserve to be a key member in PetroVietnam that plays a key role in the young and potential gas industry.

Source: Vietnam Business Forum