The Hanoitimes - A high oil price in the world was one of the main reasons behind PVN`s positive business performances, according to the company`s consolidated financial statement.
With a 82% increase in pre-tax profit in 2017, state-run energy giant Vietnam National Oil and Gas Group (PetroVietnam) became Vietnam’s most profitable company.
However, Vietnam Electricity (EVN) – the sole distributor of electricity in the country, remains the largest company in terms of revenue (excluding FDI enterprises), followed by PetroVietnam and military-run Viettel Telecom Corporation (Viettel).
In 2017, EVN’s revenue reached VND300 trillion (US$12.85 billion), much higher than PetroVietnam's VND271.4 trillion (US$11.6 billion) and Viettel's VND249.3 trillion (US$10.68 billion).
Nevertheless, EVN’s pre-tax profit stood at VND8.14 trillion (US$348.7 million), lower than the figures recorded by PetroVietnam and Viettel at VND48.2 trillion (US$2.08 billion) and VND43.9 trillion (US$1.88 billion), respectively.
A high oil price in the world was one of the main reasons behind PetroVietnam's positive business performances, according to the company’s consolidated financial statement.
According to a HSBC's report, as the momentum on oil has shifted over the past couple of years, Vietnam's oil revenue may have risen to VND60 billion (US$2.6 billion) in 2017 from VND50 billion (US$2.1 billion) in 2016 and could rise up to VND76 billion (US$3.3 billion) this year and next, assuming oil prices average US$70 per barrel.
However, as forecast, the PetroVietnam would face numerous challenges in completing the goals set for 2018 as global crude oil prices have fluctuated wildly. The East Sea dispute also affects oil exploration as well as foreign investment.
PetroVietnam expected to focus on increasing oil and gas reserves by 10 - 15 million tons of oil equivalent, at the same time, to facilitate the progress of gas development projects including Block B and Blue Whale, located offshore Da Nang in central Vietnam.
The company has set target for oil and gas production in 2018 at 36 million tons, in which gas at 22.83 million tons of oil equivalent, and crude oil of 13.23 million tons.