Vietnam Electricity owes Petrovietnam $971M
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Oil and gas giant Petrovietnam has liquidity issues because it has not been able to collect payables of VND23 trillion ($971 million) from state-owned utility Vietnam Electricity.
Over VND14 trillion of the amount is past due, and this is having a major impact on its own business, the oil company said in its first-half financial report.
EVN has financial problems after making a loss of VND19.5 trillion last year.
Petrovietnam also said that the oil and gas industry has been hit by plunging prices amid economic challenges.
In the first six months Petrovietnam produced nearly 12.7 billion kilowatt-hours of electricity, 4.5% higher than the target.
Its crude oil output was 5.3 million tons of which it sold 83% domestically.
Questions & Answers
Q.What is the primary reason for Petrovietnam's current liquidity problems?
What is the primary reason for Petrovietnam's current liquidity problems?
Petrovietnam is experiencing liquidity issues because it has not been able to collect VND23 trillion ($971 million) owed to it by the state-owned utility, Vietnam Electricity. A significant portion of this amount, over VND14 trillion, is past due.
Q.Why is Vietnam Electricity unable to pay Petrovietnam?
Why is Vietnam Electricity unable to pay Petrovietnam?
Vietnam Electricity (EVN) is facing its own financial difficulties. The utility company reported a substantial loss of VND19.5 trillion in the previous year, contributing to its inability to settle its debts with Petrovietnam.
Q.What other factors are affecting Petrovietnam's business performance?
What other factors are affecting Petrovietnam's business performance?
Beyond the unpaid debts, Petrovietnam has also been impacted by broader economic challenges. The oil and gas industry has faced difficulties due to plunging prices, which has affected its overall business.
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