On 26 April, 2023, Petrovietnam Drilling and Well Service Corporation (PV Drilling, stock code PVD) successfully held Annual General Meeting of the Shareholders for the year 2023 via online meeting (AGM).
Attending the AGM, on behalf of Vietnam Oil and Gas Group (Petrovietnam), there were Mr. Nguyen Hung Dung – member of the Members’ Council, Mr. Tran Binh Minh - member of the Members’ Council, Mr. Pham Tien Dung, Vice President together with representatives of specialized divisions; on behalf of Deloitte Vietnam, there was Mr. Bui Van Trinh, Vice President; on behalf of PV Drilling, there were Mr. Mai The Toan - Chairman of the BOD, Mr. Do Duc Chien - Vice Chairman of the BOD, Mr. Nguyen Xuan Cuong - member of the BOD cum President & CEO, together with PV Drilling’s BOD members, BOM members, Head of the Supervisory Board, representatives of specialized divisions, subsidiaries and 153 shareholders and authorized people, representing 367,776,509 ordinary shares, equivalent to 66.16% of the total number of shares with voting rights attending the meeting.
The Presidium consists of Mr. Mai The Toan – Chairman (center), Mr. Do Duc Chien – Vice Chairman (right) and Mr. Nguyen Xuan Cuong – Member of the BOD cum President & CEO (left).
At the AGM, PV Drilling submitted to the AGM for consideration and approval of submissions including: report on 2022 business performance and business plan for 2023; report of the BOD on operational activities in 2022 and implementation plan in 2023; report of the BOS on operational activities in 2022 and implementation plan in 2023; selection of the audit company to audit 2023 financial statements; 2022 audited financial statements; profit distribution of 2022 and distribution plan for 2023; remuneration plan for the BOD and the BOS in 2023.
Mr. Nguyen Xuan Cuong, PV Drilling’s President & CEO reported at the AGM.
Reported at the AGM, Mr. Nguyen Xuan Cuong informed that the global economy in 2022 still had many uncertainties due to the impact of the Russia-Ukraine conflict, resulting in global energy crisis, inflation out of control, interest rates increase, etc. For the oil and gas market, the crude oil prices started to recover stably with an averaging price for the whole year over $100/barrel. In the domestic market, there were few drilling campaigns, leading to limited workload and high competition rate. To cope with the above difficulties, PV Drilling has made great efforts to find jobs, maintaining market share, ensuring service quality and safety in business operation. As a result, all the rig fleet has been busy since quarter 2/2022. During the year, PV Drilling continued to maintain rig efficiency at high level and all the owned rigs achieved Zero Lost Time Incident (Zero LTI). In addition, PV Drilling actively developed new services, especially implementing contracts for clients in the field of gas - electricity - fertilizer and wind power.
Besides, manpower management was conducted well, ensuring to provide the experienced, qualified, capable Vietnamese laborers who enabled to handle rig management/operation as well as well technical services. Financial management was also well carried out by closely following global financial market trends so that the Corporation could minimize exchange rate differences, high interest expense and enhance debt recovery.
In 2022, PV Drilling completed dividend payment in shares for 3 consecutive years in the period of 2019-2021 to shareholders. For investment activity, PV Drilling decided only machinery and equipment in need for business operation was the priority to invest in.
Despite trying the best in managing business operation, under the negative impacts of the global financial market change especially high interest expense and large exchange rate differences, end of the fiscal year 2022, PV Drilling achieved revenue of VND 5,599 billion and profit before tax of VND (139) billion.
Entering 2023, the oil and gas market starts a new growth cycle with bright signals. With a scenario that the average day rate about 75,000 USD/day, jack- up rig efficiency about 3.9 rigs, PV Drilling plans to achieve revenue of VND 5,400 billion, profit after tax of VND 100 billion, contribution to the State budget of VND 340 billion. The President & CEO Nguyen Xuan Cuong also added that, in the first quarter of 2023, PV Drilling achieved profit of about VND 50 billion. Together with all current business plans for other quarters, PV Drilling is confident to fulfill all targets, even exceed the profit plan for 2023.
Mr. Nguyen Hung Dung, member of Petrovietnam’s Members’ Council directed at the AGM.
Directed at the AGM, Mr. Nguyen Hung Dung –member of Petrovietnam’s Members’ Council affirmed: as a major shareholder, Petrovietnam always supported PV Drilling to fulfill annual business plans that the AGM assigned to PV Drilling. However, 2022 is one of the most challenging years for PV Drilling in particular and other oil and gas companies in general due to negative impacts of exchange rate differences, high interest expense, supply chain disruption, political uncertainties, etc. After many years of operating with excellent business results, 2022 marked the first year that PV Drilling couldn’t fulfill business plan. Although the business results of 2022 was not good, PV Drilling still contributed to the total revenue of Petrovietnam as well as supported other subsidiaries to fulfill all domestic drilling campaigns; at the same time completed the charter capital increase from dividend distribution in share for years 2019-2021 as well as maintained strong financial condition, stable total asset and total resources.
“Operating under the context of market fluctuations and challenges, Petrovietnam - as a major shareholder, recommend that PV Drilling should focus on governance - management activity while ensuring safety in operation, complying with current regulations - processes; investment should be in close accordance with actual needs, and continuing to control uncertainties, etc. so that the Corporation can fulfill all business targets that the AGM assign. With positive business result achieved in the first quarter together with both long-term and new drilling contracts , Petrovietnam believe that PV Drilling will fulfill, even exceed 2023 business plan. On behalf of Petrovietnam, I would like to thank all the esteemed shareholders, PV Drilling’s management and staff - a united team that always strives for the overall success of Petrovietnam” - Mr. Nguyen Hung Dung emphasized his trusts on PV Drilling’s sustainable growth.
Mr. Mai The Toan, Chairman of PV Drilling’s BOD reported at the AGM.
On behalf of PV Drilling’s management and staff, Mr. Mai The Toan showed his special thanks to Petrovietnam’s management, who always accompanied and supported PV Drilling from the first day of establishment, especially during the hardest time in 2022. The Chairman also added PV Drilling would closely follow the directions of Petrovietnam’s management as focusing on governance - management, investment, uncertainty avoidance, etc. while ensuring PV Drilling’s stable and sustainable development. PV Drilling’s management and all the staff will try the best to fulfill and exceed all 2023 business targets as submitted to the AGM.
I believe that with business results achieved in the first 4 months, PV Drilling will definitely achieve 2023’s business result which will be higher than the plan submitted to the AGM. We commit to make the best effort to preserve and expand the capital, maintaining the sustainable growth that PV Drilling’s heading for and bringing maximum benefits to our esteemed shareholders” – Chairman of PV Drilling committed.
PV Drilling’s PR Team.