PetroVietnam announces higher earnings for 2011

The PetroVietnam Group, the nation’s State-owned oil and gas group, has posted profits of VND49.9 trillion (US$2.4 billion) so far this year, PetroVietnam’s President Phung Dinh Thuc said at a meeting yesterday.

“Our growth has nearly doubled after two years, and we plan to exceed our targets set earlier this year,” Thuc said.

Although two of its subsidiaries, PV Oil and fibre producer PVTex, posted losses in the first half, the group earned a total revenue of VND340 trillion ($16.5 billion), 21 per cent over its half-year plan and 45 per cent more than the same period last year. Its petroleum revenue alone was worth $6.05 billion.

“PetroVietnam’s revenue in 2009 was about VND300 trillion ($14.5 billion), which was less than this half’s figure alone. This growth is really optimistic,” Thuc said.

Gross revenue exceeded its half-year plan by 34 per cent and was 68 per cent of its annual target.

Meanwhile, its contribution to the State budget was worth VND75 trillion ($3.6 billion), a surge of 26 per cent over its half-year plan and 31 per cent over the same period in 2010.

Oil and gas services contributed 28 per cent to the group’s total revenue, worth VND94 trillion ($4.6 billion), up 38 per cent over the same period last year.

“We have inked five new contracts on oil and gas exploitation, of which one was a co-operation agreement with a foreign partner,” the group’s president said.

“For projects signed with foreign partners, we have balanced our foreign currency resources. As for the form of funding, we guarantee 3 per cent is extracted from the group’s equity. In addition, we are considering an appropriate time to issue corporate bonds.”

Exploitation and sales rose 2 per cent and 4 per cent, respectively, over the plan. Specifically, exploitation of crude oil reached 7.23 million tonnes.

Of the 7.2 million tonnes of crude oil sold, more than 57 per cent was exported and the remainder went to Dung Quat Oil Refinery.

Meanwhile, Thuc urged PetroVietnam staff to ensure maintenance work at the refinery met its deadline.

He said PetroVietnam had disbursed VND44 trillion ($2.1 billion) and postponed and rescheduled 56 projects worth VND7.25 trillion ($352 million).

Petrovietnam plans to accelerate its disbursement, while closely monitoring the progress of the projects started and completed in 2011.

“Five new oil and gas mines would be explored by September. Two of those are located in Russia and Malaysia. Key domestic projects such as Nghi Son Oil Refinery, Quang Trach 1 Thermal and Song Hau 1 power plants and the Mien Nam (South) Petrochemicals Complex will be built in Q3 and Q4 of this year,” Thuc said, adding that these programmes were vital to the country’s energy security.

In addition, a series of other projects involving oil, textiles, power and fertiliser production would be commissioned in the second half of this year.

“For the rest of the year, we aim to exploit a further 11.3 million tonnes of oil and gas, and earn VND300 trillion ($14.56 million) more in the second half,” Thuc said.

Although PetroVietnam still had debts of VND7 trillion ($339.8 million) owed to Viet Nam Electricity Corporation, the group planned to gradually pay off the debt, Thuc said. — VNS

Tags: PetroVietnam