Vietnam’s State energy firm’s 1Q profit falls 51% from a year earlier

First quarter revenue was estimated to drop by 13% compared to the same period of 2019 to VND88,300 billion ($3.77 billion), while the after-tax profit was estimated at VND4,440 billion ($190 million), a decrease of 51%, according to data.

Due to the increasingly complicated and serious situation of the Covid-19, governments restricted travel and contact, resulting suspension of several production and tourism activities.

Furthermore, the impact of the on-going trade war, the reduction of oil prices sent companies into difficult situations.

The Vietnamese oil firm is expected to suffer VND279,767 billion ($12 billion) loss in revenue in 2020 if the epidemic is prolonged and the oil price does not recover, CafeF news website cited the State Capital Management Committee.

PetroVietnam has reported that its exploitation of crude oil in the first quarter of 2020 exceeded the target by 10 percent. Electricity production reached 5.33 billion kWh, equivalent to 100 percent of the first quarter plan, and 24.7 percent of the annual target.

The firm produced 441,800 tonnes of nitrogenous fertilizer, and 3.41 million tonnes of petroleum, 5.5 percent and 2.5 percent higher than the set targets, respectively, VietnamPlus said.

PetroVietnam and its subsidiaries have actively implemented a series of solutions to maintain their production and business activities amid the COVID-19 pandemic, which has led to a sharp drop in global crude oil prices and caused serious losses to the domestic oil and gas industry.

The group has strengthened cooperation with domestic businesses that have business lines related to products they supply.

It has also monitored market information related to the demand and price fluctuations of crude oil and petroleum products, and outlined plans to take advantage of business opportunities.

Source: VietnamPlus