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PVN reports profit of over VND10 trillion despite oil price drop

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HANOI – Vietnam Oil and Gas Group (PVN) recorded a profit of over VND10 trillion between January and July despite a plunge in oil prices and the impact of the coronavirus pandemic.

Over the past seven months, most of the world’s leading oil and gas firms and groups were incurring losses of US$1.6-21 billion, forcing them to scale down production, while PVN earned over VND10 trillion in profit and paid over VND38 trillion to the State budget due to its quick response to the pandemic and the drop in oil prices, according to PVN.

The group was still maintaining its production and ensuring its supply of strategic items including gas, electricity, fertilizers and fuel to the local market, buoying its growth during the hardship triggered by the pandemic and oil price drops from January and July.

In the second quarter of 2020, global oil prices stood at low levels, even lower than those seen in the first quarter of the year. The average oil price was US$40.2 per barrel in July, while the price averaged out at US$44 per barrel between January and July.

Meanwhile, the group had earlier targeted US$60 per barrel of oil, Le Manh Hung, general director of PVN, said, adding that PVN’s financial results showed a positive performance.

All of the group’s members maintained their production, with Vietsovpetro, PetroVietnam Exploration Production Corporation and Rusvietpetro, among others, fulfilling their production targets.

In January-July, PVN churned out 12.5 million tons of fuel, well above its seven-month target and meeting 61.5% of the full-year target, while the group generated 12.7 billion kilowatt hours of power, reaching 59% of the full-year target.

The group discovered a large volume of oil at Ken Bau field, 65 kilometers east of Quang Tri, in July, promising to attract investments and smoothen the path for PVN to further develop in various fields including oil exploration and exploitation, processing and oil services in the future.

By Lan Nhi

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