Efforts to overcome difficulties, expectations for the future

In 2018, production and business activities of PTSC have got many positive signals, especially in marine mechanics with contracts from new projects, expects to increase PTSC's revenue in the coming time.

In 2017, PTSC operated in the context of enormous difficulties and challenges. Especially, the oil price plunged sharply and continuously maintained at a low level, that seriously affected the oil and gas industry in general and PTSC's operation in particular. Most of the new projects, development of domestic and foreign marine petroleum services was stretched, stopped deploying. Marine Petroleum Services - PTSC's core services was in fierce competition, declining exponentially, in terms of volume and value.

MV FSO Orkid of PTSC

In that context, PTSC and its members have urgently applied a series of measures to boost business development, cut expense and thrift; applied the reduction of the quality costs, staff cutbacks and depreciation to minimize costs.

PTSC leaders take incentive measures to motivate employees to self-effort and work to maximize their ability and strengthen the culture of transparency, fairness and a civilized working environment. Innovative movements in PTSC have been strengthened with many practical and effective contributions. Improved innovations of employees as well as of consultancy units are statistically and publicly disseminated to all members for study and application in actual situation to bring high efficiency.

The training and development of human resources is also promoted in many forms of training, self-training have met the requirements of updating, learning, improving skills and knowledge of workers to meet the needs of high-tech services.

Construction of drilling platform at PTSC port

The market development has many appropriate solutions, market analysis, focus on combining joint venture promotion, association, cooperation with domestic and foreign contractors and partners. In addition, PTSC strongly develops design, engineering, scientific and technological resources that supports the implementation of the project.

As a result, PTSC's total consolidated revenue of the year 2010 is estimated at VND 22,368 billion, equal to 172% of the full year target; consolidated profit before tax reached VND 1,005 billion, equal to 143% of the year target. PTSC's services are always safe, of good quality, schedule and meet all the requirements of Vietnam Oil and Gas Group (PetroVietnam), domestic and foreign petroleum contractors; the resources and its system are maintained at stable development.

Currently, oil prices have recovered strongly and are above $70/barrel, but it is estimated to remain unstable. Therefore, in the coming years, especially in 2018, PTSC will continue to face with many difficulties caused by oil prices and business environment.

Recognizing the difficulties and challenges, at the recent meeting with PVN's leaders, PTSC’s CEO and President – Mr. Phan Thanh Tung made suggestions and recommendations to PVN on policies to support domestic and enterprises in this industry; PVN is considering recommending the government to have more policies to support enterprises in taxation and customs ... allowing imported components directly serve the manufacture of key mechanical products to award incentives; research, and promote comprehensive restructuring…

The rebound in oil prices also triggered and accelerated the recovery and restarting of oil and gas projects that have delayed over the past several years, also made PTSC's workload be positive from the middle of 2018 to the end of 2022. In the first quarter, PTSC has announced the cooperation agreement to establish joint ventures with partners to implement the project for new mines. Along with the contract for the FPSO Lam Son lease back to partners, this activity is expected to bring in revenue and better profit in the second quarter and full year 2018 to PTSC. Other large projects will also be kicked off next year, such as Su Tu Trang Phase 2, Sao Vang - Dai Nguyet, or Block B - O Mon.

In 2018, PTSC's activities are expected to improve and recover better, especially marine mechanics segment with rebound revenues thanks to contracts from new projects. According to financial experts, PTSC's revenue forecast for 2018 will reach about VND 17,100 billion, a slight increase of 2% compared to 2017, profit before and after tax respectively of VND 1,030 billion and VND 873 billion.

Technical services

To achieve that expectation, in the coming time, PTSC's main task is to concentrate all resources to promote and develop business and production, provide specialized petroleum technical services with high quality, meet the requirements of the oil and gas contractors; actively promote marketing, participate in bidding and seeking contracts to ensure employment for employees; consolidate the domestic market, expand the foreign market; develop solutions to connect the professional system, promote trade promotion, establish partnership relationship associated with their strengths.

Specifically, for the core services of oil and gas industry, PTSC is focusing on effective safe and timely implementing projects such as Sao Vang - Dai Nguyet, Long Phu 1 Project, NPK Project, NH3, Long Son Refinery and Petrochemical Project. PTSC also continue to manage safely and exploit the FSO / FPSO Floating Warehouse, meet the requirements of customers, and implement the operation personnel supply for MV FSO Orkid, Thai Binh VN, MV12

In addition, they promote marketing efforts to seek opportunity to develop and expand the market to provide new services such as logistics and forwarding for the units in and out of the sector to offset the declining demand on oil and gas services. PTSC simultaneously organize implementation of projects on transportation, installation, connection, commissioning, operation and maintenance of offshore petroleum projects, meet the requirements of oil and gas contractors. They also organize the management and safe exploitation of 2D seismic survey vessel - Binh Minh 02 and 3D seismic survey ship - Amadeus, geophysical survey ship - PTSC Surveyor, PTSC Researcher; strive to maintain the market ROV services in the country and develop to overseas markets.

Nguyen Phuong