World oil prices remain lower than planned and complicated storms and floods in the country have significantly affected the business performance of several oil and gas enterprises.
The sharp drop in domestic oil prices for the ninth consecutive time since the beginning of the year has caused great difficulties for the business operations of the Vietnam Oil Corporation (PVOil, code OIL). In addition, storm No. 3 and the flash floods and landslides that occurred after the storm in the northern provinces have caused serious damage to the Corporation's business infrastructure. PVOil's units in the northern region were all affected by storms and floods, such as falling pump columns, collapsed walls and roofs, and some of PVOil's gas stations/depots were flooded and had to stop selling, causing the output and business efficiency of the Corporation and its member units to decline seriously.
The total revenue of the Corporation in the first half of September is estimated at VND3,800 billion, and accumulated revenue in the first 8.5 months of the year is estimated at over VND93,000 billion. Consolidated revenue in the first half of September is estimated at VND3,450 billion, and accumulated revenue in the first 8.5 months is estimated at over VND89,000 billion, completing 152% of the yearly plan and increasing 42% over the same period last year. Revenue of the parent company in the first half of September is estimated at VND3,300 billion, and accumulated revenue in the first 8.5 months is estimated at VND64,000 billion, completing 161% of the 8.5-month plan and increasing 15% over the same period last year.
The unfavorable market situation has negatively affected the business performance of the enterprise. PVOil's consolidated pre-tax profit in the first half of September is estimated at about 1 billion VND.
Accumulated in the first 8.5 months of the year, PVOil estimated a profit of 480 billion VND; of which, the parent company estimated a profit of 395 billion VND and the subsidiaries estimated a profit of 165 billion VND.
Storm No. 3 and floods in the North also negatively affected the business activities of PetroVietnam Fertilizer and Chemicals Corporation (code DPM) last September. In the North, DPM had its transactions frozen on the commercial channel. The distribution system of the Corporation had to focus on flood prevention and limiting commodity risks. Meanwhile, the production channel had transactions at a standstill, without any breakthroughs.
In the Central region, due to the end of the crop season and the beginning of the rainy and stormy season, fertilizer consumption demand is low. Fertilizer market transactions are slow, and urea prices tend to decrease.
In the Central Highlands and Southeast regions, due to the impact of storms and rains, the progress of the third fertilization of coffee and industrial crops was interrupted. Market information recorded that the prices of urea at the main port warehouses decreased slightly by 50 - 200 VND/kg depending on the type (especially imported goods), and transactions were slow.
Similarly, in the Southwest region, continuous rain has affected deliveries, and due to low seasonal demand, fertilizer prices have tended to decrease.
In the first half of September, the consumption output of Phu My urea, Phu My NPK, NH3, UFC products of DPM is estimated to reach 58%, 56%, 50% and 50% of the monthly plan respectively. Total revenue is estimated at 514.3 billion VND, reaching 55% of the monthly plan. Pre-tax profit is estimated at 2.8 billion VND, reaching only 6% of the monthly plan.
However, due to the favorable business situation in the first 8 months of the year, due to the recovery of fertilizer prices and demand, DPM's business results in the first 8.5 months of 2024 were quite positive.
Specifically, Phu My urea consumption output in this period is estimated to reach 75% of the yearly plan, Phu My NPK reached 79% of the year, NH3 reached 64%, and UFC 85 reached 77%. Accordingly, revenue is estimated at VND 9,732.1 billion, reaching 76% of the yearly plan; pre-tax profit is estimated at VND 666.5 billion, reaching 101% of the yearly plan.
At Ca Mau Petroleum Fertilizer Joint Stock Company (code DCM), the converted urea production output in September was 67,410 tons, reaching 90% of the monthly plan and equivalent to 82% of the same period last year. NPK production output in September is estimated at 11,050 tons, reaching 90% of the monthly plan and equivalent to 160% of the same period last year.
However, DCM's September sales volume and business results were quite positive compared to the plan. Specifically, the September urea sales volume reached 80,000 tons, reaching 143% of the monthly plan and equivalent to 207% of the same period; the NPK sales volume in the month was estimated at 25,000 tons, reaching 203% of the monthly plan, equivalent to 136% of the same period.
It is estimated that in September, DCM recorded revenue of VND 1,472.77 billion, reaching 171% of the monthly plan and equal to 157% of the same period in 2023. Pre-tax profit in the month is estimated at VND 78.98 billion, reaching 130% of the monthly plan and equivalent to 99% of the same period last year.
For the Oil and Gas Drilling and Well Services Corporation (PVDrilling, code PVD), short-term business results are not affected by negative developments in oil prices, as drilling service contracts are all signed for the long term. Recently, the Board of Members of the Vietnam Oil and Gas Group (PVN) - the parent company of PVDrilling approved the Corporation's business figures for the first 9 months of the year, with revenue of VND 6,277 billion, up 38% compared to the 9-month plan and up 46% compared to the same period in 2023; pre-tax profit of VND 668 billion, up 107% compared to the 9-month plan and up 54% compared to the same period in 2023.
PVDrilling said that the business results in the first 9 months of the year were higher than the 9-month plan as well as the same period last year thanks to the higher rental price of drilling rigs than the plan and the same period last year. Currently, the Corporation's 4 drilling rigs are all operating at good and stable capacity.
(tinnhanhchungkhoan)
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