Oil and gas industry maintains growth despite market fluctuations

The risk of escalating trade wars and geopolitical conflicts around the world, disrupting supply chains and increasing production and transportation costs, has negatively impacted business operations.

Oil and gas exploitation at Te Giac Trang field.

To cope with this situation, the oil and gas industry has improved management, reduced costs, etc., thereby boosting production and maintaining business efficiency.

In the past 5 months, the production targets of the Vietnam National Oil and Gas Group ( Petrovietnam ) have all been completed and exceeded the plan, in which many targets increased sharply compared to the same period in 2024.

Exceeded many targets

General Director of PetroVietnam Gas Corporation (PV Gas) Pham Van Phong said that in the context of many unfavorable market fluctuations, especially the rapid decline in oil prices and continued decline in gas demand, with the efforts of the entire system's employees, the unit's revenue and profit in the past 5 months increased from 9 to 11% compared to the same period in 2024.

Specifically, the gas output received and consumed reached 45% to 50% of the annual plan; the liquefied petroleum gas (LPG) output reached more than 1.3 million tons, reaching 69% of the annual plan; consolidated revenue was more than 46.5 trillion VND, completing 63% of the annual plan; pre-tax profit reached more than 7.4 trillion VND, completing 112% of the annual plan.

The above achievements are the result of outstanding efforts in corporate governance, expanding production and business, and optimizing the advantages and capital of the unit. In addition, PV Gas has identified difficulties since the end of 2024 and actively implemented solutions to expand the market, develop international business, and effectively collect debts.

The unit has promoted investment and construction work, the disbursement value of the parent company reached 842 billion VND, focusing on key projects such as: Increasing the capacity of Thi Vai liquefied natural gas (LNG) warehouse to 3 million tons/year; Son My LNG import port warehouse project; gas supply project for Long An 1, 2 power plants; project to increase the capacity of Phu My- Ho Chi Minh City gas pipeline, etc.

“To continue to maintain growth momentum and adapt to the energy transition trend, the unit thoroughly implements the motto of renewing old driving forces and adding new driving forces, focusing on shifting and innovating the operating model to suit the modern and sustainable development of the energy industry. At the same time, develop the consumption market, limit the impacts of the gas supply market for electricity as well as deploy stronger business development activities to ensure production and business efficiency,” Mr. Phong emphasized.

According to Mr. Phong, in investment, the unit aims to continue to strengthen the investment management system, ensure the quality and progress of projects; promote investment in product diversification; focus on scientific research and invention to have products with high applicability in production and business activities, thereby soon completing the assigned production and business tasks, continuing to affirm the No. 1 position in the Vietnamese gas industry.

PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo, Phu My Fertilizer) is also one of the few units that have exceeded the management plan assigned by Petrovietnam in the past time, thereby demonstrating the drastic management and efforts of the whole system.

Regarding this issue, PVFCCo General Director Phan Cong Thanh affirmed: In the context of increasing input material costs and strong market fluctuations, the unit still maintains stable production activities and completes assigned production and business targets, saving production costs of VND 123 billion, reaching 50% of the yearly plan, of which energy savings is VND 113 billion.

In 5 months, urea production output reached 377,687 tons, reaching 101%; NPK reached 88,942, reaching 135% and financial indicators exceeded 30-91% of the plan. To maintain the development momentum in the coming time, the unit continues to innovate its business model associated with the application of science and technology and the development of new products, focusing on markets, raw materials, products, core technologies and industry value chains.

Optimize production efficiency

Petrovietnam General Director Le Ngoc Son said that in the past 5 months, most of the group's production targets were completed and exceeded the plan, many targets increased sharply compared to the same period in 2024.

Of which, crude oil exploitation reached 4.01 million tons, of which domestic exploitation alone reached 3.27 million tons, exceeding the plan by 18.9%; electricity production reached 14.26 billion kWh, up 9.9%; gasoline production (including NSRP) reached 6.81 million tons, up 16.8%; excluding NSRP, output reached 3.12 million tons, up 34.4%; NPK production reached 245.2 thousand tons, up 64.4% over the same period in 2024.

Total revenue reached VND410 trillion, equal to 50% of the annual plan; budget contribution was VND56.1 trillion; investment value reached VND12.74 trillion, up 28.5% over the same period in 2024. According to Mr. Son, to maintain growth in the context of a challenging market, in addition to effectively operating factories and projects, Petrovietnam is promoting the expansion of market share and consumption markets for key products such as gasoline, LPG, LNG and oil and gas services.

The Group has implemented many flexible solutions to increase domestic and foreign business activities, taking advantage of opportunities to optimize production efficiency. The unit promotes signing and cooperation with state and private economic groups to create linkage chains, enhance national competitiveness, seek growth opportunities, and expand markets.

“With its role and position as a leading enterprise in Vietnam in the fields of energy, industry and services, the group has been implementing many comprehensive cooperations with corporations and enterprises such as Viettel, ACV, TKV, Vinachem, Hoa Phat, etc. This is a step demonstrating Petrovietnam's initiative in implementing the group's development strategy in the new period, in line with the Government's direction on enhancing support and cooperation between enterprises for the goal of sustainable development, enhancing national competitiveness in the context of a strongly changing economy", Mr. Son emphasized.

In addition to boosting the capacity of factories, expanding the market and market share of key products, Petrovietnam focuses on accelerating the progress of key projects such as putting Dai Hung phase 3 into operation from May 8, 2025 to increase 860-870 tons/day (14.2 thousand barrels/day higher than the current 7.8 thousand barrels/day) from Dai Hung field, contributing significantly to offset the natural decline in output at domestic oil fields; Nhon Trach 3 power project was synchronized with the grid on February 5, 2025, expected to be commercially operated from July 2025,...

Currently, Petrovietnam and its member units are urgently completing the fabrication, transportation and installation of important marine works of the Block B project chain, and preparing to put the Kinh Ngu Trang-Kinh Ngu Trang Nam field into operation from July 15.

Source: https://nhandan.vn/nganh-dau-khi-duy-tri-tang-truong-truoc-bien-dong-thi-truong-post887663.html