PV Building: Ensuring stable production and business in 2016

The decline in world oil prices since mid-2014 has caused many difficulties for domestic oil and gas enterprises. With many synchronous and drastic solutions, in 2015, PetroVietnam Building and Trading Joint Stock Company (PV Building) completed and exceeded its production and business plan with revenue exceeding 9.6% compared to the previous year. In 2016, PV Building’s shareholders’ meeting set the goal of improving corporate governance to ensure stable production and business.

According to Mr. Tran Doan Thinh – Director of PV Building – said: “Currently, the main production and business activities of the company include: Packaging production and trading; trade and logistics services. In 2015, the total revenue of the company reached 601,491 billion VND, an increase of 9.6%. In which, the highest proportion of revenue was the purchase and sale of PP plastic granules of Dung Quat Oil Refinery (NMLD). At the same time, the production and trading of packaging also had a high growth rate due to the expansion of market activities. In particular, the agricultural packaging line exceeded the annual plan by 65% ​​and was 61% higher than in 2014. Total revenue from packaging in 2015 reached 159.5 billion VND. Thanks to that, it contributed to increasing the company’s revenue in 2015.

For logistics services, in 2015, the company expanded its transportation business by putting into use 4 more Toyota Land Cruisers and 8 47-seat vehicles, increasing the number of vehicles in the company’s transportation business to 22, bringing in a stable source of income from this activity. At the same time, housing management was implemented according to the contract signed with Binh Son Refining and Petrochemical Company Limited (BSR), the arrangement and organization of housing for employees was organized appropriately, contributing to improving the efficiency of management and use, avoiding waste. In addition, in 2015, the company also provided more than 120,000 industrial meals to serve employees of the Dung Quat Oil Refinery and Ethanol Plant. The increasingly professional services of tree care, cleaning, industrial laundry, etc. have brought a green, clean and beautiful environment and landscape to Dung Quat Oil Refinery and the buildings managed by the company.

2016 was a year of many difficulties, especially when oil prices were forecast to continue to decrease, directly affecting units in the oil and gas industry. In that context, the company’s annual shareholders’ meeting held in April 2016 determined to ensure stable production and business activities in 2016 with a plan of total revenue of VND 500.07 billion and after-tax profit of VND 11.5 billion. To achieve that goal, the company has built a structure of prioritizing production products, accordingly, the 3-layer PE product line will be prioritized for orders from Dung Quat Oil Refinery. Focus on optimizing production, ensuring that machinery is always in a stable and continuous production state. Develop a research plan to improve machine efficiency to the maximum, save materials, and reduce production waste. In addition, the cost of raw materials accounts for a high proportion in the cost of packaging products, so it is necessary to find alternative sources of raw materials and new mixing formulas to reduce production costs and improve business efficiency.

Along with that is the agricultural bag line, whose main products are cassava starch bags and sugar bags. The company will also have a plan to improve the raw material mixing formula. In particular, this bag line has a plan to improve the quality by investing in new printing machines to meet the needs of customers and the market.

Meanwhile, with commercial services, PV Building has determined that the main business products in 2016 will still be PP plastic granules, wooden pallets, and warehouse rental services. Accordingly, the company will promote the construction of a retail system for products and prioritize the criteria of ensuring capital safety and payment capacity. As for logistics services, the company continues to focus on improving quality, strictly controlling costs and having timely solutions to ineffective business areas. At the same time, implementing a fixed-price salary policy for each stage and production department to increase labor productivity and link the responsibilities and rights of workers to the factory on a monthly and quarterly basis to ensure the best management of materials, minimize costs, and bring high efficiency in production and business.

Mr. Tran Doan Thinh – Director of PV Building:

In the context of low world oil prices and the risk of price decline, to achieve production and business targets in 2016, PV Building continues to improve corporate governance, implement appropriate remuneration policies for highly qualified workers. Strengthen inspection and control of product quality at each stage, assigning responsibility to each production department.

Source: baocongthuong.com.vn