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PV GAS successfully completes its 2014 tasks

In 2014, PetroVietnam Gas Joint Stock Corporation (PV GAS) deployed its production and business plan on the conditions that the world and domestic economy was on track of recovery but still plagued with many difficulties. In the country, credit growth remained low and non-performing debts were not improved; world LPG prices constantly fluctuated and deeply dropped; the crude oil reached its lowest record in the past 4 years… However, PV Gas actively recognized, anticipated obstacles and introduced appropriate solutions, promptly handling difficulties in management, creative in production and business; taking advantage of opportunities, promoting the full potential strength of the whole political system. With high solidarity, spirit from PV GAS leaders and personnel, PV Gas has successfully fulfilled most of its tasks and set targets. 

With smart and close instructions from PVN, guidance and support from central ministries, departments, local authorities and partners, PV GAS has passed 2014 with remarkable achievements. That is the safe and continuous operation of gas works, without any incidents adversely affecting people, property and PV Gas’ reputation, completing and exceeding most of the production and business targets, especially those regarding to profit, State budget contribution, production of dry gas, LPG and condensate from Cuu Long gas system have been completed from 2 to 4 months ahead schedule according to the annual plan. PV Gas has been ranked in the list of Top 50 companies with largest market capitalization in Southeast Asia by Nikkei Asia Review and in the top 2,000 largest enterprises in the world by Forbes; remaining as one of leading companies of PVN as well as the stock exchanges in term of profit; with significant contributions to the national budget, jointly with PVN contributing to the nation-wide macroeconomic stability.

In 2014, PV GAS has well performed, boosting and strictly implementing Security – Safety – Health – Environment and inspection tasks. All of the gas systems, production facilities were safely operated, without any incidents affecting people, property and PV Gas’ reputation. Total safe working hours of the year reached 6.3 million hours. PV Gas’ co-ordination with the Command of Vietnam Coast Guard, the Navy Command, Vietnam Maritime Administration, Exploitation and Protection of Aquatic Resources and provincial local governments in good performance of patrol and communication to protect underwater gas pipeline system, received the support from local residents.

All the gas systems of PV Gas have been in safe, stable and constant operation. The total output of wet gas brought onshore and sold for EOR project was 10,175 million m3, representing 104% of the annual plan; PV Gas has produced and supplied 9,971 million m3 of gas (including 9,965 million m3 of dry gas and 6 million m3 of wet gas for EOR project), representing 104% of the annual plan, increased by 5% over the same period in 2013; operating revenues reached 40,514 billion VND, or 114% of the plan, increased by 25% over 2013.

At the Cuu Long gas system, upon completion of the corrective maintenance in the phase of halt from 10/9-18/9/2014 and resumption of the system operation 79 hours ahead of schedule as well as ensuring the system’s stable operation, putting into operation 05 gas compressor units on the CCP at some points in time and achieving stable output from some fields, PV Gas has completed its annual plan at a high level: 1,263 million m3 of gas, representing 129% of annual plan, increased by 5% over the same period of 2013. In particular, output of LPG produced from Dinh Co has reached the target 4 months ahead schedule and Condensate nearly 3 months.

At Nam Con Son (NCS) gas processing and transportation system, PV Gas’ transportation system and processing has been in stable operation; gas assignment and moderation tasks have been reasonably conducted, significantly contributing to completion of the gas supply plan, given the fact of difficulties of gas supply disruption from some fields, as well as low gas consumption for power generation during the rainy season. PV Gas has supplied 6,857 million m3 of gas, representing 104% of the annual plan, increased by 9% over the same period in 2013.

At the PM3-Ca Mau gas system, during the annual phase of complete halt, PV Gas has completed the corrective maintenance work 96 hours ahead schedule and always ensured continuous and safe system operation. However, as the systems of the field owners had more incidents than previous years, leading to interrupting/stopping/reducing gas supply, coupled with partners consuming less gas for power generation, plus long downtime of Ca Mau Power Plant for corrective maintenance work, all these resulted in PM3 gas output only reaching 1,845 million m3, equal to 95% of the annual plan.

During the year, the execution, management and monitoring of gas purchase and transportation contracts have been strictly implemented by PV Gas in compliance with regulations in its best effort to supply gas to customers. Production and business of liquid products remained at high volume. As for production, the implementation of appropriate operating regime, maintaining the high recovery rate of liquid products and the higher volume of wet gas from Cuu Long brought onshore have contributed to exceeding the target in annual liquid production, reaching 57,560 tons of condensate – equal to 122% of the annual plan; 292,300 tons of LPG – equal to 138% of the plan.

Regarding to business, PV Gas has exceeded the annual plan on output and business sales of LPG, condensate; supplied the market with 1,044,300 tons of LPG (With Dinh Co reaching 300,700 tons, Dung Quat – 75,100 tons, import and international trading – 668,500 tons), representing 111% of the annual plan (If taking subsidiaries into account, less overlapping outputs, PV GAS has supplied to the market 1,269,329 tons of LPG), translating to the revenue of 20,285 billion VND, 121% of the plan; providing the customers 57,560 tons of condensate, 122% of the plan, equivalent to the revenue of 813 billion, equal to 149% of the plan. However, wide fluctuations and deep drop of LPG price in the world, and the crude oil reaching its low record in the past 4 years have affected PV Gas’ business performance in LPG.

Gas transport operations, control of quality and gas product volume differences has been carried out in strict compliance with regulations, satisfying customer demands. No customer complaints were reported on gas product quality and services. PV Gas has transported 6,857 million m3 of NCS gas, yielding 2,522 billion VND in revenue, representing 115% of the annual plan; transporting 1,845 million m3 of gas from PM3 -Ca Mau, equivalent to 1,417 billion VND, accounting for 98% of the plan; fully transporting NCS condensate on demand, reaching over 32 billion VND in revenues, equal to 122% of the plan.

Corrective maintenance, verification and calibration tasks were carried out with quality according to the plan and process, ensuring stable and constant operation. PV Gas also completed the corrective maintenance ahead schedule at the gas works requiring gas supply stop during such tasks, including: The corrective maintenance of LPG tanks at Thi Vai storage, gas system of PM3-Ca Mau and Cuu Long, putting the gas system into safe operation ahead schedule (Bach Ho central gas compressor, Dinh Co Gas Proccessing Plant ahead 79 hours and PV Gas’ Ca Mau Gas system 44 hours, 79 hours and 96 hours ahead of schedule, respectively). Besides, PV GAS also completed survey, repairing of defective points of many pipelines.

PV Gas has actively carried out construction investment works, strictly following plans, schedules and ensuring capital sources according to disbursement schedule of the projects. With great support from PV GAS- parent company, its subsidiary and affiliate companies actively deployed their business and production activities. 3/6 companies had their ROE (net profit /charter capital) of over 35%, but some companies failed to achieve high performance in business activities. Usage and supply of services have always been implemented by every member company in strict compliance with current regulations and PVN’s directions. In 2014, services within and outside the oil and gas industry have contributed nearly 14% of PV GAS’ revenues, equivalent to VND 9,116 billion (services in the industry accounted for approximately 74%), mainly in transport services for gas and gas products, supply of low pressure gas, CNG for industrial use, supply of CNG/LNG for transportation/urban areas, pipe manufacturing, pipe coating and storage lease. These services have always satisfied customer requirements in term of quality, quantity and schedule. In addition, PV GAS has used services worth of VND 5,966 billion (services in the industry accounted for approximately 80%), mainly for design, procurement; construction and installation of gas works; maintenance, repair and procurement of equipments for operation, gas product transportation; insurance, testing, appraisal, scientific research and training,...

The tasks of corporate restructure, labor and remuneration, policies were implemented in strict compliance with the State regulations and PVN’s directions. The recruitment was always closely based on demand and plan. The 2014 training plan of PV GAS was effectively deployed and implemented; employee salaries were promptly raised/adjusted in accordance with regulations; documents of emulation and reward, emulation titles in 2013 have been completed and submitted to management of all levels. PV Gas’ total employees were 3,550 (1,134 employees working for the Parent company), of which 80% were male, 20% female and employees holding university degrees and above accounted for over 60%. 6,614 employees participated in training courses organized by PV GAS or organized abroad, representing 150% of annual plan, at cost of more than VND 27 billion, or 125% of annual plan. Activities of scientific research and technical innovations have been constantly promoted and deployed from the beginning of the year and hailed by every division, production unit and employee. PV GAS has completed and submitted the plan of Vietnam’s Gas Industry Model to PVN; continued completing the Development Strategy of PV GAS up to 2025 and orientation to 2035, Five Year plan 2016-2020, and 2015 anual plan to submit them to PVN for consideration and approval as the basis for implementation.

PV GAS has also prepared and launched the action plan of thrift practice, expense reduction and required every employee to strictly follow this policy according to PVN’s direction; arranged, managed capital and production cost tightly and effectively; announced the 2014 saving targets of management cost and production cost to every member company across PV GAS, at the same time enhancing the inspection and supervision of this policy implementation at member companies. As a result, in 2014, PV GAS saved over VND 192 billion in expenses, production cost, equal to 140% of annual plan (saved from management cost, production innovation, raw materials, fuels, energy costs). To keep fulfilling its social security responsibilities, PV Gas has actively deployed the tasks according to PVN’s assignment program in provinces/cities nationwide, focusing on areas such as: construction of houses of great solidarity, support in education sector – schools, health sector – hospitals, gratitude programs, support for natural disasters, humanitarian relief...In 2014, PV GAS spent total VND 90 billion in social security programs, equal to 100% of annual plan.

Entering the year 2015, PV GAS continues receiving interest and close directions from PVN, support from local authorities of all levels, contributions given by its experienced and enthusiastic personnel. Besides, PV GAS’ reputation has kept increasing over time both domestically and regionally. PV GAS Development Strategy up to 2025 and orientation to 2035, PV GAS’ Five Year plan 2016-2020, PV GAS restructure plan, overall development model of Vietnam’s Gas Industry and gas trading mechanism of PV GAS will be approved by PVN, facilitating PV GAS in implementing its planned tasks and targets for development of the gas industry. The Government adjusts gas prices to fertilizer plants, power plants at the market prices applicable to surplus gas above take or pay quantity, faciliatating PV GAS in promoting investment in and development of new gas projects. The global economy as well as domestic economy is expected to be on recovery with positive growth but still facing many difficulties, continuing to adversely affect operation of businesses in the country. The Asia-Pacific region still harbors potential factors trigerring instability such as expansion of influence of big countries, disputes over territory and sovereignty over ocean islands and natural resources.... The crude oil price is expected to strongly fluctuate and deeply fall. Some FDI companies are supported with strong finance source and LPG supply by their parent companies abroad. Some new LPG suppliers other than existing ones are entering the Vietnamese market, resulting in much fiercer competition. Many major projects of PV GAS are simultaneously deployed on tight schedules and require large capital. Huge resources need to be focused and mobilized to ensure these projects to be completed on schedule. In 2015, the new gas sources from Thien Ung, Dai Hung fields will be added to Cuu Long gas system and in quarters III, IV of 2015, the Tien Hai –Thai Binh gas system will be put into operation for supply to customers in the North.

The targets of PV GAS in 2015 include: safely and effectively operating and ensuring security for existing gas works; receiving and putting new gas sytems (NCS2 – Phase 1, Ham Rong – Thai Binh gas system, Dinh Vu LPG storage) into safe operation and production; ensuring optimized effectiveness in gas and gas product production and consumption. PV GAS is expected to supply 9,771 million m3 (dry gas: 9,540 million m3, wet gas: 231 million m3), 48,000 tonnes of Condensate, produce and consume 960,000 tonnes of LPG, together with other member companies satisfy more than 70% of LPG demand nationwide. In 2015, PV GAS registers total 30 projects with capital amount of VND 7,009 billion requiring disbursement.  

I. MAIN TARGETS

No.

Target

Unit

Plan 2015

I

Output

 

 

1

Wet gas (gas ashore + supply to JVPC)

M.m3

9,980

 

2

Gas Consumption

M.m3

9,771

3

Condensate

Tonne

48,000

4

Parent company’s LPG

Tonne

960,000

II

Finance

 

 

1

Revenue

Billion VND

69,539

 

-

Of which parent company

Billion VND

61,998

2

Profit before tax

 

Billion VND

14,164

 

 

-

Of which parent company

Billion VND

13,951

3

Net profit

 

Billion VND

11,526

-

Of which parent company

Billion VND

11,339

4

Net profit/Charter capital

%

40

5

Dividend payout

%

30

6

Charter capital

Billion VND

28,615

7

Contribution to budget

Billion VND

4,670

-

Of which parent company

Billion VND

4,563

 

SIGNIFICANT EVENTS IN 2014

1. Completing  turn around (TA) at GPP, Thi Vai Terminal and PM3 - Ca Mau gas system, ensuring safety and resuming operation ahead of schedule;

2. Fulfilling targets of profit and budget contribution; producing dry gas, LPG and Condensate from Cuu Long source 2 to 4 months ahead of schedule of the annual plan; 

3. Investing in Nam Con Son 2 project – Phase 2; gas gathering and supplying system in Tien Hai – Thai Binh, contributing an important part to maximizing the gas gathering and adding to the domestic gas supply system, facilitating PV GAS in developing gas projects in the North.

4. Completing the final accounting and settlement of investment capital for important projects with difficulties unresolved and lengthened over time (Phu My – HCM City, Rong Doi Moi, Su Tu Den/Su Tu Vang-Rang Dong, PV GAS Tower, low pressure gas supply system to Nhon Trach IP Phase 1, Hiep Phuoc Long Hau IP Phase 1, steel pipe manufacturing plant, Thi Vai refrigerated LPG storage, Extended Rong Doi Moi).

EXPECTED SIGNIFICANT EVENTS IN 2015

1. Completing and putting into operation the following projects: Nam Con Son 2 – Phase 1, playing an important role in maximizing gas gathering and adding to gas supply system in the Southeast region; Tien Hai – Thai Binh gas gathering and supplying system, facilitating PV GAS to develop gas projects and supply gas to the North; Offset of NCS wet gas to Dinh Co GPP to supplement gas supply to Cuu Long system and increase gas value.

2. Completing PV GAS’ charter capital increase.

3. Signing EPC contracts and deploying projects: 1 MMTPA LNG storage at Thi Vai for supplementing gas supply for the Southeast region, preparing to develop LNG product in the future; Ca Mau GPP to recover the gas amount conceded to Petronas and increase gas value. 

4. Celebrating 25th anniversary of PV GAS and its 100 billionth cubic meter of gas supplied to customers.

© Copyright PETROVIETNAM GAS JOINT STOCK CORPORATION (PV GAS)
Address: Floor 12-15, PV GAS TOWER, No. 673 Nguyen Huu Tho Street, Phuoc Kien Commune, Nha Be District, Ho Chi Minh City.
Phone: +84.28. 3781 6777 Fax: +84.28. 3781 5666 Email: pvgas@pvgas.com.vn

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