PVTrans Oil Proactive Double crisis response

  • PVTrans Oil Proactive Double crisis response

    Before the epidemic situation Covid-19 complex and oil price crisis no sign of recovery, besides the daily management of safety, engineering, public debt, cost control… The Board of Directors of Phuong Dong Viet Oil transportation JSC (PVTrans Oil) has proposed several focus solutions.

    Ship PVT Neptune

    As a member of the PetroVietnam Transportation Joint Stock Corporation (PV Trans), PVTrans Oil operates its main business in the field of petroleum chemicals and vegetable oil transport; Marine and logistics services; Ship management and crew supply services. Currently, the unit is focusing on thriving chemical oil fleet with a load from 10,000 to 20,000 DWT, the vessel leaves 20,000 to 30,000 DWT. PVTrans Oil fleet is present at most terminals in the Asia-Pacific region, the Indian Ocean to the Middle East to connect safe goods from producers to producers, from producers to users.

    The last time, the impact of the compounding crisis (Covid-19 epidemic and crude oil prices at the time of the negative threshold) have severely impacted the production and business results of the whole oil and gas sector in general, PVTrans as well as PVTrans Oil in particular. Supply chain and cargo demand in shock reduction, many harbours require vessels to wait for the new 14 days for the bridge; This cause gave birth to the cost of ship days. PVTrans Oil's fleet is largely older, through every year of increasing cost operations, particularly the cost of maintenance, repairs, spare parts, and other components…, which also reduces competitiveness with other ships in the country and region. In addition, fluctuations in the exchange rate (CLTG) at 31/3/2020 on the rise compared to the beginning of the 2020 from 23,230 to 23,660, increasing 430 points, greatly affecting the CLTG cost of the company. Before such a difficult situation, in addition to daily management of safety, engineering, public debt, cost control…, PVTrans Oil Board has proposed a number of key solutions.

    One of the specific solutions that was to enhance the fleet capacity; Which in particular is the advanced technical status of Phuong Dong Star ship to ship capable of running international routes long days and looking for long-term T/C jobs for ships. For the ship PVT Saturn, PVT Neptune, PVT Synergy, PVOil Jupiter, continue to maintain T/C contracts with customers, ensuring the ship is not suspended because of technical status. PVTrans Oil also planned to accelerate the depreciation of 2 vessels Jupiter, Venus; When favorable conditions will be handled this 2-vessel process for further funding to carry out a rejuvenating fleet investment plan; At the same time working with banks to didemy debt to reduce financial burden and cash flow.

    In addition, PVTrans Oil will continue to improve the safety management system of TMSA and ship management software applications; Negotiating discounts, reducing the cost of supplies and spare parts with the purpose of reducing the cost of 10-15% of fleet technical management; Optimizing fuel consumption, lubricants,… In addition, the company also planned to complete an increase of capital from 295 billion to 476 billion in 2020 to invest more than 2 ships, consisting of 1 cargo vessel of Handysize 22,000-32,000 DWT and 1 oil tanker product/chemical 13,000-20,000 DWT, or 2 tanker product/Chemical payload range 13,000-20,000 DWT, aimed at expanding and rejuvenating the fleet, increasing transport capacity and competitiveness.

    In addition, PVTrans Oil also set out many other solutions to fulfill the mission objectives in the year 2020, such as market solutions, expanding the operating area of the fleet; Improve the efficiency of trading operations and development of logistics services; Enhance new customer search to participate in agency services and other auxiliary services. In the investment and financial work of organizing the construction of cash flow plans, strictly take control of revenues and expenditures; Continue focusing on dealing with backlog debts, in order to recall and replenish capital for business operations. Enhancing the governance, continuing to improve the organizational organization, training and development of qualified human resources, responsibility and enthusiasm to meet the development requirements of the company; The organization of building a cultural environment works "dynamic, professional and responsible", maintaining the efficiency of business operations.

    Truc Lam