PVOIL reports 9-month business result as positive on flexible strategy to minimize damage from uncertainties

08.10.2022

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On October 7, 2022, the Executive Party Committee of PVOIL organised the 11th Conference in Ho Chi Minh City to review PVOIL's business, production, and Party work in the first nine months of 2022.

The conference was chaired by Mr. Cao Hoai Duong, Secretary of the Corporation’s Party Committee, who is also Chairman of the Board of Management of PVOIL, and PVOIL President & CEO Doan Van Nhuom.

Members of the Executive Committee of the Party Committee of the Corporation, the Board of Management, the Control Board, the Chief Accountant, the Chairman of the Trade Union, the Secretary of the Youth Union, the Heads and Deputy Heads of the Corporation's Divisons and Offices, the Secretaries and Directors of Affiliated Units, and the Secretary, Chairman of the Board of Directors, Director, and Chief Accountant of subsidiaries all attended the conference.

The implementation of political duties as well as the Corporation's production and commercial operations were conducted and supervised by the Party Committee of PVOIL in the first nine months of 2022, according to the Executive Board of the Party Committee's report.

Party building and leadership activities brought positive results of business and production tasks of the Corporation and its unit. The Standing Committee of the Party Committee, the Board of Directors, and the Board of General Directors of the Corporation had close, timely, cooperation and agreement in leading, managing, and operating PVOIL's activities.

In the first 9 months of the year, the main production and business targets met the goal decided earlier. In particular, PVOIL's petroleum and lubricant sales volume reached 3,022 thousand m3/ton, exceeding 21% of the 9-month plan and reaching 91% of the whole year plan in 2022.

Sales volume through wholesale and corporate customer and retail system grew strongly over the same period. Consolidated revenue reached VND 76,497 billion ($3.2 billion), exceeding 70% of the whole-year plan in 2022. Investment and development of retail petroleum stations have been actively implemented, bringing the total number of PVOIL's stations to 648 stores in the whole system.

Additionally, PVOIL keeps promoting comprehensive technology applications, automation, and digital transformation in order to boost company efficiency, enhance the customer experience, and establish competitive advantages in the marketplace.

Sales volume through the PVOIL Easy channel reached 71.5 thousand m3 in the first nine months of the year, completing 84% of the year plan, averaging 262 m3/day, up 27% from the daily average output in 2021. Sales volume using PVOIL Easy in combination with non-cash payment options including Got It, MoMo, Viettel Money, VCB, HDBank, AirPay, and VNPT Money continues to develop well, with total production increasing by a factor of two to 9.8 thousand m3. The amount of transactions generated by clients using the PVOIL B2B application platform, which serves wholesale and industrial customers, has increased.

At the Conference, the PVOIL's affiliated and subsidiaries reported the operational situation, as well as the challenges, issues, and suggestions related to Party activities, business and production efforts, and investment. With each member unit, the Corporation leaders discussed and responded to recommendations as well as detailed directions.

Operating the conference, PVOIL President & CEO Doan Van Nhuom agreed that the third quarter's business activities of PVOIL were challenging due to the continued slowdown in domestic and international petroleum prices, which had a direct impact on the company's accumulated profit and performance over nine months.

In such situation, the Price Management Team of the Corporation and its divisions effectively coordinated, making sure that the inventory strategy for products dispatching was acceptable and flexible. They also managed and limited losses in highly challenging market circumstances. Additionally, PVOIL has successfully promoted the network of connections with PetroVietnam’s member units to ensure the source of goods under the supervision of the Ministry of Industry and Trade, helping in the growth of output and operational effectiveness.

Mr. Doan Van Nhuom requested the units to continue closely monitor the market during the final three months of the year, manage production and business factors to prevent losses in the event of a challenging market, and make efforts to seize opportunities to complete business activities and achieve the best-assigned plan.

In particular, special attention should be given to carrying out the task of safety, fire prevention, fighting, debt collection, using the industry's value chains effectively, and making sure there is never a lack of supplies at any construction stations throughout the entire country system.

At the end of the Conference, Mr. Cao Hoai Duong acknowledged the outcomes of the Party operations carried out by the whole Party Committee of the Corporation in the first nine months of the year. To overcome obstacles and weaknesses in their work, the Party Committee of the Corporation and its affiliated branches/party committees must review and strictly abide by the Party's rules and policies. They must also place importance on the implementation of professional training and retraining for Party committees at all levels.

Mr. Cao Hoai Duong was very appreciative of the ability of the Executive Board, the Divisions, and the units in terms of production and commercial operations. The fall in oil prices had a significant impact on PVOIL's commercial activities in the third quarter, but even this, the Corporation and its subsidiaries favored flexible applications, reduced losses, and maintained company profitability.

He requested that the Corporation and its units be prepared to respond to scenarios in order to maximize opportunities when the market is favorable and to reduce losses in adverse circumstances in order to best complete the business plan in 2022. This was done in recognition of the fact that the economic and political world still has a number of variables that directly affect PVOIL's business activities.