The acute respiratory disease pandemic caused by a new strain of Corona virus (Covid-19) has been negatively affecting all aspects of socio-economic on a global scale. The price of crude oil and oil products have plummeted since the end of January 2020 and have been particularly deep since the beginning of March 2020. Domestic demand for gasoline also dropped sharply.
The double impact of this crisis has reduced business output of PVOIL and subsidiaries; Average business cost per liter increased while retail price continue to plummet.
Adopting the motto of being “tightened belt” and creative to turn risks into opportunities, PVOIL and its member units have reviewed, developed an action plan including the strategy to reduce costs under 3 scenarios, corresponding to the business output decline of up to 10% compared to the plan, 20% compared to the plan; 30% and even over 30% than planned.
Simultaneously, PVOIL has strengthened urgent measures to respond to the Covid-19 pandemic:
Regarding business solutions, PVOIL is flexible from supplying petroleum to business units and inventories are always strictly controlled to minimize damage caused by price reduction and optimizing business efficiency in stages of preparation, transportation, delivery and storage.
Regarding solutions to reduce operating costs, PVOIL reduces expenses not directly related to production and business, giving priority to expenses that help increase production and business efficiency. Especially, all employees agreed to reduce their monthly salary by 25% to share difficulties with the corporation. The period of application is from March 2020 to June 2020 or longer according to the actual business situation.
Regarding the Covid-19 pandemic prevention solutions, PVOIL has carried out several activities that got positive results, including donating 50,000 medical masks to customers and residents at its petroleum stations. PVOIL equips employees at retail outlets with masks and provides lunches for customers who are drivers while waiting for products. In response to the Government’s call, PVOIL also donated VND100 million to buy a virus test kit.
From March 18, 2020, the PVOIL and subsidiaries allowed 50% of employees to work remotely. From March 27, 2020, most workers were asked to work from home. Regulations and procedures for remote work processing are quickly developed and applied. Therefore, when the Government implemented a 15-day social distancing from April 1, 2020, PVOIL was ready for this working regime.
PVOIL continues to promote and introduce to customers the non-cash payment solutions. This is a unique competitive product and service of PVOIL. It is also a solution to help customers limit cash exposure, limiting the risk of disease transmission. Although sales via sales have decreased, PVOIL still effectively exploits its business strengths. Sales volume for corporate customers in the first quarter of 2020 increased by 109% over the same period. Sales volume through PVOIL Easy, an electronic payment using QR codes on mobile phones for corporate and individual customers, in March 2020 reached an average of 146m3 per day, an increase of nearly 12% compared to with December 2019 (132m3 per day).
The above solutions prove PVOIL has moved and promptly responded to the negative impacts caused by the Covid-19 pandemic. The corporation’s Board of Directors and employees unanimously, consistently and drastically assessed the situation, synchronously implemented several solutions to minimize losses and maintain production and business activities. maintain jobs for employees to overcome this difficult period together./.
PVOIL staff presented medical masks to customers and residents at PVOIL’s petroleum stations
PVOIL staff provides lunch for tanker drivers
PVOIL promotes sales through non-cash payment applications