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PetroVietnam sees earnings fall
PetroVietnam reported revenues of just VND52.2 trillion (US$2.98 billion) in the first quarter this year, 20 per cent lower than in the same period last year, mostly due to lower global oil prices, PetroVietnam deputy director Phung Dinh Thuc told a press conference in Ha Noi last Friday.
The group earned about $1.45 billion from exporting 4.3 million tonnes of crude oil during the period, with oil prices averaging just $45 per barrel, a drop of $55 from last year’s price peaks, Thuc said.
As a result, PetroVietnam paid merely VND18.6 trillion (over $1 billion) into the State Budget in the first quarter, 26 per cent less than a year earlier, he noted.
During the period, the group also invested about VND10.4 trillion in a number of ongoing major projects, including the Dung Quat Oil Refinery; a five-star hotel and office complex in Ha Noi’s My Dinh area; a fertiliser plant in Ca Mau; the Nghi Son oil refinery complex; Long Son refinery; and Nhon Trach power plants No 1 and 2.
The long-awaited Dung Quat Oil Refinery, the nation’s first, began operations on February 22, since churning out 2,440 tonnes of various kinds of refined petroleum products.
PetroVietnam chairman Dinh La Thang said the group would submit to the Government this week a draft plan on the prices of products produced at Dung Quat, with prices to be based on the market, as well as a proposal on tax policies that would guarantee the profitability of the refinery.
Crude oil for the refinery came initially from the Bach Ho offshore oilfield, but PetroVietnam has already inked contracts with BP to provide additional crude oil supplies, Thang said. It would likely sign with two additional foreign partners for supplies, he added.
The group has also signed 10 contracts to exploit oil and gas abroad, including co-operation agreements with Nicaragua, Bolivia and Argentina.
Recently tapping into the thermo-power sector, PetroVietnam also planned to set up an affiliate supplying coal for a domestic electricity project. To secure stable coal resources, Thang said the group would sign contracts to import coal from Australia, Indonesia and Russia.
Vietinbank loan
Also last Friday, PetroVietnam signed an agreement under which the Viet Nam Bank for Industry and Trade (Vietinbank) would provide a $200 million line of credit for the Dung Quat Oil Refinery.
Built at a total estimated cost of $3 billion, the refinery has already received a preferential loan of $1 billion from Viet Nam Development Bank.
Vietcombank has also committed to be the leading funder for a $250 million loan package for Dung Quat.
PetroVietnam expected to continue signing such loan agreements in the future to satisfy its capital demands.
Vietnamnet
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