PRESS RELEASE

Regarding former PVOIL officials prosecuted in the Oceanbank case

On April 7, 2020, the Investigation Department under the Ministry of Public Security prosecuted Mr. Nguyen Xuan Son, former General Director of PVOIL (one-member limited liability company) and Mr. Vu Trong Hai, former Chief Accountant of PVOIL (one-member limited liability company) on alleged abuse of power to appropriate property related to the expanded investigation on the Oceanbank case.

This is a personal issue of Mr. Son when he was Deputy General Director of the corporation from July 16, 2009, then General Director of the corporation from January 5, 2010 to September 30. 2014, and Mr. Hai when he was Chief Accountant from June 3, 2011 to the end of December 8, 2014.

Deploying business activities, PVOIL always complies with financial regulations and cash flow management strictly. PVOIL also cooperates closely with investigating authorities in this case.

Like other local and foreign businesses, especially those operating in the oil and gas sector, PVOIL is receiving severe damage caused by the Covid-19 pandemic. As part of the global economy, PVOIL has been suffering double whammy from the virus fears and the decreasing oil price.

The oil price has fallen to $20 per barrel end of March from approximately $70 per barrel at the beginning of February 2020. Severe decrease in demand of about 20% caused by the pandemic. This is not only the most difficult time since PVOIL was equalized in early 2018 but also since its inception in 2008.

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 solution 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./.