PVE strives to restructure and improve production and business situation

In 2022, PVE’s business continued to face many difficulties, especially the shortage of work sources in all areas of operation. Many projects are behind schedule, while service prices remain low, significantly affecting the implementation of PVE’s plan. The fierce competition in the oil and gas service market between domestic units, industry and foreign companies operating in Vietnam has been taking place. Besides, there are difficulties in financial resources of PVE, …

With a more difficult than favorable context, the Board of Directors and employees of the whole corporation have made efforts to implement specific solutions/solutions to overcome and handle existing from previous years; well implement key projects and resolutely pursue potential projects to improve the business situation and maintain human resources.

PVE successfully held the 2021, 2022 Annual General Meeting of Shareholders

In 2022, the whole corporation exceeded the targets of the business plan with a total revenue of VND 423.25 billion, equal to 154% of the plan; Profit after tax is equal to 101% of the year plan. In particular, during the year PVE made strong restructuring efforts. In particular, PVE has completed the restructuring of the parent company from 06 Departments/Office to 03 Departments; Management and administration personnel decreased from 46 people to 35 people, arrange appropriate personnel and optimally use existing resources in order to reduce indirect apparatus costs and improve labor productivity. PVE also successfully held the 2019 Annual General Meeting (28/4/2022) and the 2020, 2021 Annual General Meeting (30/6/2022); Successfully restructuring and receiving senior personnel of the Corporation and its member companies. PVE also completed the transfer of contributed capital at PV GAS building; handle all principal balances of the parent company and part of PVE-PMC at VCB; Removed some financial difficulties, gradually resolved outstanding debts, …

In business activities, PVE completed the SMP construction package of Long Son project and is one of the few subcontractors highly appreciated by SECL General Contractor. Long Son project has generated a large source of revenue to cover costs, compensate for the lack of output and revenue of other fields in 2022 of the parent company and PVE-PMC member company; Implement projects to ensure quality and progress, contributing to creating the trust, cooperation and support of industry units and foreign partners.

These results are great efforts of PVE in responding to market fluctuations, as well as efforts to solve difficulties and backlogs to stabilize business production. Leaders at all levels have renewed their thinking and actions in corporate governance, focusing on risk forecasting and assessment in the fields of operation; Look directly at the actual problems that are and will be encountered to provide timely and effective solutions; Maintain periodic business briefings and project marketing meetings, closely follow the investment / bidding plans of the Investors to update situations and scenarios in the implementation of projects to serve as a basis for developing monthly/quarterly/yearly plans close to reality; Consider and propose to choose the form of signing a fixed price contract with subcontractors/suppliers to hedge risks when exchange rate fluctuations are large.

Black Lion / Golden Lion – Rang Dong Pipeline Project with the participation of PVE

In 2023, it is forecast that PVE’s business activities will face many difficulties due to the context of fluctuations in oil prices and the risk of economic recession. The investment and development of new projects in the oil and gas industry has not had many positive changes; The progress of some onshore projects may be delayed and prolonged. The oil and gas services market (including PVE) is assessed to continue to lack job resources and competition is extremely fierce. PVE’s limited financial resources continue to affect the Corporation’s ability to participate in major projects. Surging inflation increases labor and financing costs while service prices remain low due to competitive pressure to source jobs.

In this context, PVE aims to improve management capacity and roles and responsibilities of leaders at all levels in the management and administration of enterprises; direct and effectively use existing resources to achieve business objectives and targets as well as continue to handle difficulties and existences of the Corporation and its member units.

In addition, PVE will focus on marketing and market development in core areas; Resolutely pursue key and potential projects both inside and outside the industry in the coming time with the spirit of willingness to participate in projects suitable to PVE’s capacity; Improve the quality of PVE’s human resources through retention of key engineers, additional recruitment, internal mobilization and professional/foreign language training; Well implement key projects to be implemented in 2023, meet the requirements of project progress and quality to maintain prestige and enhance PVE brand; Accelerate the implementation of solutions to improve the financial situation; Continue to build a database management system for corporate governance, marketing – bidding; Implement digital transformation, apply 4.0 technology to improve labor productivity, improve the quality of products/services, save time and increase production efficiency.

Mai Phương