Chairman's Letter
REPORT
CONSOLIDATED PETROLEUM OUTPUT
Petrolimex’s vision toward 2035 is to become the leading energy corporation in Vietnam in green, clean, high quality, environmentally friendly products with foundation of 4.0 technology platform and comprehensive digital transformation.
Ladies and gentlemen
In 2023, the world's socio-economic situation continues to evolve in a complicated and unpredictable manner, with increasing military conflicts and strategic competition among countries around the world, and geopolitical uncertainty. World oil prices continue to fluctuate unpredictably, causing many challenges for the petroleum business. Some other Petrolimex business sectors such as lubricants, chemicals, jet fuel, etc. continue to be affected and have great impact on business performance. However, it can be seen that despite a difficult year, in 2023 Petrolimex has continued to demonstrate stability, steadfastness and high adaptability in proactively and flexibly responding to influences and challenges from the world and domestic economies mentioned above.
In the context of 2023, many large private petroleum hubs has stopped their operation due to violations in the petroleum business, causing gasoline supply difficulties at times, Petrolimex has continued to perform well as a role of State-owned enterprise in stabilizing the petroleum market, ensuring petroleum supply to the nationwide distribution system in all situations, contributing to ensuring national energy security.
In 2023, Petrolimex is proud to be one of the state-owned enterprises that comprehensively completed and exceeded planned targets with total consolidated revenue of about 11.2 billion USD and pre-tax profit of nearly 162 million USD. In 2023, Petrolimex is also honored by many prestigious ranking organizations with such titles as: Top 10 best corporate governance enterprises in large capitalization group; Top 50 best listed companies in Vietnam”; Top 100 most valuable brands in Vietnam; TOP 3 enterprises with the largest revenue scale in Vietnam; Top of the largest tax paying enterprises in Vietnam.
2023 is the year that Petrolimex has completed many important contents in the Group Restructuring Project for the period 2021-2025, vision toward 2035. Issued the Digital Transformation Strategy of Vietnam Petroleum Group until 2025, defining towards 2030, and at the same time promulgate the Development Strategy of Vietnam Petroleum Group to 2025, vision toward 2035. With the vision of becoming the leading energy group in Vietnam in terms of green, clean, and quality products, environmentally friendly based on 4.0 technology platform and comprehensive digital transformation, in the near future, Petrolimex will focus on two key, cross-cutting, long-term strategies: the comprehensive Digital Transformation strategy and Green Energy Transition Campaign.
Facing the energy transition movement taking place globally and in Vietnam, Petrolimex is taking steps to become a green, clean, and environmentally friendly energy corporation. Regarding the core business of petroleum trading, Petrolimex has always been a pioneer in deploying the business of petroleum products with low CO2 emissions such as E5 biofuel and gasoline with high fuel standards (EURO VI, EURO V) and low sulfur products.
Petrolimex also continues to enhance our research capability and implementation of green transformation projects at terminals, jetties and petroleum stations such as installation of vapor recovery units, rooftop solar power systems... In 2023, Petrolimex signed a Memorandum of Understanding with the National Innovation Center (NIC) to promote innovation in the energy transition process at Petrolimex. Petrolimex has also registered with the Ministry of Natural Resources and Environment 06 priority pilot projects at Petrolimex to contribute to Vietnam's green transformation process, within the framework of implementing the Resource Mobilisation Plan to implement the JETP Declaration * of the Prime Minister.
Promoting a tradition of nearly 70 years of formation and development, Petrolimex employees are striving their best every day to successfully complete assigned tasks. I would like to send my thanks and gratitude to the Petrolimex employees for their dedication, contributing to the results achieved by Petrolimex in 2023.
I also send my thanks to Mr. Le Van Huong, Mr. Ken Kimura and Mr. Vo Van Quyen for their valuable contributions to Petrolimex. Mr. Le Van Huong, as a member of the Board of Directors and Head of the Group Human Resources and Remuneration Department, always completes his tasks well and is highly appreciated by the Board of Directors. He will receive the decision of the Board of Directors to retire from 1st June 2024. Mr. Ken Kimura has been a member of the Group's Board of Directors since 2021, taking on an important role in the development cooperation between Petrolimex and strategic partner ENEOS Group. He will take on a new position at ENEOS Group in Japan from April 2024. Mr. Vo Van Quyen has been an independent member of the Board of Directors of Petrolimex since March 2022, and has made great contributions to the relationship between Petrolimex and state agencies in the petroleum sector and the Petroleum Association. Mr. Le Van Huong, Mr. Ken Kimura and Mr. Vo Van Quyen will officially resign from their positions as members of the Petrolimex Board of Directors at the annual General Meeting of Shareholders at the end of April 2024.
Looking back at the year 2023, with many uncertainties from the outside world and positive changes inside Petrolimex, on behalf of Petrolimex's board of directors, I would like to thank shareholders, customers, partners for their trust and support throughout the past year. I believe that with determination and steadfastness in implementing the set goals, Vietnam National Petroleum Group will welcome 2024 with many successes and new miracles.
Wishing you a new year of good health, happiness and successes!
*JETP Declaration: Political declaration establishing a fair energy transition partnership
CHAIRMAN
