Saturday, December 29, 2007

Petrovietnam 2007 sales rise beats forecast

Petrovietnam 2007 sales rise beats forecast

Sat Dec 29, 2007 12:13am EST

HANOI, Dec 29 (Reuters) - State oil group Petrovietnam estimated revenues this year would jump 13.1 percent from last year to 203.7 trillion dong ($12.7 billion), beating its own expectations, a state newspaper reported on Saturday.

In October, the unlisted group said revenues this year would rise 9 percent to 190 trillion dong, 13 percent above its annual target, as the group expands into the financial sector and lets several subsidiaries go public.

Petrovietnam now estimated revenues to be 21 percent above the 2007 target, reaching 203.7 trillion dong, the Tien Phong (Vanguard) newspaper cited a company report as saying.

"The year 2007 has marked the group's first step in developing crude oil trading overseas," it said without elaborating.

Petrovietnam has entered agreements with big oil firms including BP (BP.L: Quote, Profile, Research) to look for new crude sources to replace falling output from the Bach Ho field, Vietnam's largest oil field, the newspaper said.

Vietnam's crude oil output this month is expected to fall 10.5 percent from last month to 298,000 barrels per day (bpd). Average daily output for the whole of this year would decline 7.8 percent from last year to 312,000 bpd, the government said.

Daily production has been running below the peak of 434,000 bpd reached in January 2004, following lower output at Bach Ho. The field's supply would drop by an average 1.06 million tonnes per year by 2014, its operator Vietsovpetro said.

Crude exports, Vietnam's top foreign exchange earner, would hit a record $8.5 billion this year, 2.6 percent higher than 2006 thanks to high oil prices, the government said.

Foreign exchange revenues make up 70 percent, or $8.85 billion, of Petrovietnam's total, it said but gave no profit figures.

In October, Petrovietnam sold 11.93 percent of its financial arm, Petrovietnam Finance Corporation (PVFC), to the public. Petrovietnam eventually plans to reduce its holding in PVFC to 60 percent next year from 70 percent now.

On Thursday, PVFC sold a 10-percent stake worth $217 million in itself to Morgan Stanley (MS.N: Quote, Profile, Research). It is looking to sell another 8 percent to a second foreign investor before its share trading debut on the domestic stock market in the first quarter of 2008.

Petrovietnam also plans to set up a commercial bank and is awaiting central bank approval.

Next year. Vietnam's crude oil exports are expected to drop 6.2 percent to 300,000 bpd as the country's first oil refinery, the 140,000-bpd Dung Quat plant, would test run in the last quarter, using Bach Ho oil.

The $2.5-billion refinery would be fully operational by the first quarter of 2009, the government has said. (Reporting by Ho Binh Minh; Editing by Jan Dahinten)

Sat Dec 29, 2007 12:13am EST

HANOI, Dec 29 (Reuters) - State oil group Petrovietnam estimated revenues this year would jump 13.1 percent from last year to 203.7 trillion dong ($12.7 billion), beating its own expectations, a state newspaper reported on Saturday.

In October, the unlisted group said revenues this year would rise 9 percent to 190 trillion dong, 13 percent above its annual target, as the group expands into the financial sector and lets several subsidiaries go public.

Petrovietnam now estimated revenues to be 21 percent above the 2007 target, reaching 203.7 trillion dong, the Tien Phong (Vanguard) newspaper cited a company report as saying.

"The year 2007 has marked the group's first step in developing crude oil trading overseas," it said without elaborating.

Petrovietnam has entered agreements with big oil firms including BP (BP.L: Quote, Profile, Research) to look for new crude sources to replace falling output from the Bach Ho field, Vietnam's largest oil field, the newspaper said.

Vietnam's crude oil output this month is expected to fall 10.5 percent from last month to 298,000 barrels per day (bpd). Average daily output for the whole of this year would decline 7.8 percent from last year to 312,000 bpd, the government said.

Daily production has been running below the peak of 434,000 bpd reached in January 2004, following lower output at Bach Ho. The field's supply would drop by an average 1.06 million tonnes per year by 2014, its operator Vietsovpetro said.

Crude exports, Vietnam's top foreign exchange earner, would hit a record $8.5 billion this year, 2.6 percent higher than 2006 thanks to high oil prices, the government said.

Foreign exchange revenues make up 70 percent, or $8.85 billion, of Petrovietnam's total, it said but gave no profit figures.

In October, Petrovietnam sold 11.93 percent of its financial arm, Petrovietnam Finance Corporation (PVFC), to the public. Petrovietnam eventually plans to reduce its holding in PVFC to 60 percent next year from 70 percent now.

On Thursday, PVFC sold a 10-percent stake worth $217 million in itself to Morgan Stanley (MS.N: Quote, Profile, Research). It is looking to sell another 8 percent to a second foreign investor before its share trading debut on the domestic stock market in the first quarter of 2008.

Petrovietnam also plans to set up a commercial bank and is awaiting central bank approval.

Next year. Vietnam's crude oil exports are expected to drop 6.2 percent to 300,000 bpd as the country's first oil refinery, the 140,000-bpd Dung Quat plant, would test run in the last quarter, using Bach Ho oil.

The $2.5-billion refinery would be fully operational by the first quarter of 2009, the government has said. (Reporting by Ho Binh Minh; Editing by Jan Dahinten)