PV GAS - Leader of Vietnamese Gas Industry

In 2016, steep falls of oil prices and peculiar difficulties posed multi-dimensional impacts to the gas industry and gas firms. PetroVietnam Gas Joint Stock Corporation (PV GAS) is no exception. However, under the close direction and leadership of Vietnam National Oil and Gas Group (PetroVietnam), PV GAS endeavoured to beat production and business objectives in 2016 to become a leading unit of PetroVietnam in revenue and profit contributions to affirm its position in the national economy. Being proud but not complacent with its successes, PV GAS still strived for greater sustainability and performance to be worthy of being a leader in the Vietnamese gas industry and a strong brand in the region and the world.

Another glorious year of success
In 2016, PV GAS surpassed annual business plans from 7 per cent to 46 per cent and completed them 2-3 months ahead of schedule. With good control and guarantee of gas systems, the corporation produced and supplied nearly 10.4 billion cubic metres of gas, 1.5 million tonnes of LPG, and over 69,000 tonnes of condensate to customers, thus asserting its leading role in the gas industry of the nation. PV GAS met nearly 30 per cent of electricity output, 70 per cent of nitrogen fertilisers and 70 per cent of LPG in country.

Financially, the corporation exceeded the targets by 4-9 per cent, for a greater contribution to the State budget and PetroVietnam Group. Making up 14 per cent of revenue and 25 per cent of profit of PetroVietnam, PV GAS was one of leading units of in the group by the return on equity ratio of over 12 per cent. Besides, PV GAS completed financial balancing plans for the 2016-2025 period; timely arranged finances for projects; finalised negotiations and signed contracts and contract addendums on gas prices and charges with customers and determined credits and liabilities with gas purchasers; and completed construction and deployment of drastic LPG retail strategies.

PV GAS actively carried out 65 projects in total. The corporation cooperated closely with relevant authorities, PetroVietnam Group, and contractors in project implementation. PV GAS timely arranged VND5,286 billion for its projects.

Performances of PV GAS’s subsidiaries and associated companies were effective thanks to valuable support from the holding corporation. Three out of nine units had a return on equity ratio of over 20 per cent (PV Gas D, CNG Vietnam and PV Gas South). Particularly, LPG business units constantly strived to expand the market, production output and market share (their combined market share was 23 per cent in the country). Its low pressure gas and CNG business units constantly increased output (their total supply of low pressure gas and CNG accounted for nearly 10 per cent of PV GAS’s gas output).

To ensure safe operations, maintenance, repair and calibration of gas systems are always top concerns of PV GAS. The corporation has strictly followed its plans, processes and quality standards; ensured stable, continuous and safe system operations. In particular, PV GAS completed gas facility repairing and maintenance during its supply interruption in August and September 2016 and safely brought four gas systems into operation ahead of schedule to save and increase billions of Vietnamese dong for the corporation. Its service revenues grossed over VND6,451 billion in the year, accounting for 12 per cent of the corporation’s total revenues.

With these enviable figures and impressive accomplishments in 2016, PV GAS contributed greatly to PetroVietnam Group and the country's economy. The corporation proudly became a leading unit of PetroVietnam Group by revenue and profit, a Top 10 most well-reputed listed company in 2016, the third largest taxpayer in Vietnam, a Top 300 Asian company, a Top 100 sustainable company in Vietnam in 2016, and a national value status in 2016.

Drives for corporate renovation, corporate culture
2016 also marked PV GAS’s serious implementation and completion of corporate restructuring as guided by PetroVietnam Group. Specifically, the corporation completed the registered capital increase, purchased shares at CNG Vietnam, rearranged its member units to end fourth-tier companies at PV Gas South and PV Gas North, actively sought partners to sell its stake at PV Pipe, finalised PV GAS restructuring plan to submit to PetroVietnam Group, supplemented personnel planning for the 2016-2020 period, appointed and rotated its staff according to regulations and PV GAS development requirements; and developed the Human Resources Management System.

In the year, the corporation did not recruit new employees but transferred current ones because the workload did not increase. PV GAS and its member units trained their employees and practised thrift. In the year, the corporation sent employees to 10,020 professional training courses in Vietnam and in other countries (equal to 123 per cent of the plan) at a cost of over VND37 billion, lower than the budget assigned by PetroVietnam Group. Payroll mechanism was strictly applied by the corporation according to PetroVietnam regulations. At present, PV GAS has 3,841 employees, of which over 60 per cent hold university degrees or higher.

PV GAS attached much importance to regular and close inspection and supervision and practised thrift to reduce costs and prices. As a result, PV GAS saved over VND263 billion as planned. The corporation also placed emphasis on scientific research, investment cooperation and innovation. The concern actively carried out social security and upheld pro-community corporate culture. Last year, it donated VND125 billion to social security. It also gave commendations to well performing employees.

Ready for 2017
Continuing the spirit and enthusiasm of 2016 to 2017, PV GAS will endeavour to fulfil all criteria and tasks in 2017 to expand its operating scale and popularity to domestic and foreign investors. Accordingly, PV GAS will focus on safe and efficient performance and security of gas projects; and supply 9,244 million cubic metres of gas, 1.05 million tonnes of LPG, and 56,000 tonnes of condensate. The corporation will actively deploy retail development strategies; expand gas market development; control and ensure the progress, quality and cost of construction projects (to operate GPP Ca Mau; and to carry out the second phase of Nam Con Son 2 project, Su Tu Trang, Sao Vang - Dai Nguyet, Ca Rong Do and polypropylene plant); and improve the LPG recovery factor in GPP Dinh Co.

Besides, PV GAS will implement solutions to cut costs, improve labour productivity and business efficiency; and develop the culture of PV GAS. The firm will actively deploy the “Human Resources Management System” and corporate restructuring plan in the 2016 - 2020 period to enhance production and business performance, especially preparing plans to be ready for high gas prices in the future.

Anh Dao