PVTRANS OIL’S EMPLOYEE APPRECIATION DAY 2020
On December 24th 2020, Phuong Dong Viet Transportation Oil JSC. (PVTrans Oil) had celebrated its Annual Employee Appreciation Day for the year of 2020 at Sofitel Saigon Plaza, 17 Le Duan, District 1, HCMC.
PVTrans Oil was pleased to greet PVTrans Corp’ BOD, and top managers at the event, especially CEO (Mr. Pham Viet Anh), acting Chairman (Mr. Mai The Toan), Labor Union Chairman (Mr. Luu Trung Duy) and many other leaders from PVTrans subsidiaries.
First and foremost, PV Trans Oil’s CEO, Mr. Ho Si Thuan, spoke about the context of 2020, when the double blow of Coronavirus (COVID-19) and the oil price crash hit the world economy particularly hard; and the commercial shipping industry, like almost all other businesses, was no exception. Lockdowns across continents and restrictions in foreign trade had dropped the demand while oil-refiners could not afford any reduction in supply, led to a collapse in crude oil prices and subsequent impacts on prices for refined petroleum products and other downstream items, notably gasoline. Shipping industry, due to its relationship with world trade, became further unstable with freight market been pushed to a downwards spiral, from which leaving shipping companies suffered hard-to-recover scenario.
World chemicals and vegetable oils markets were in the same downfall where China, the world’s 2nd biggest economy, 1st greatest chemical production and top most vegetable oils consumption was the original country of Coronavirus. Thus, some big names in oil/chems tanker sectors, where PV Trans Oil is establishing its position, find themselves exposed to heavy losses. Many were cash-flow dependent and already grappled with high levels of debt and multifaceted expenses challenge before the present crisis.
Additionally, the inability to conduct crew changes due to ports/travel restrictions presented greatest humanitarian, safety and economic crisis which confront the world shipping industry since the Second World War. 400,000 seafarers were reported to be stranded on ships on Dec 2020, with contracts extended for months beyond their tenure. PV Trans Oil, had crew working onboard continuously for 17-18 months with imposibility of repatriation. Company crew, in many ways, had expressed their exhaustion, fatigue, anxiety and stress. This could have lead to serious consequences for their physical and mental health and consequentially for safety of the vessels they operated.
At the time when PV Trans Oil was at tipping point and a timely, coherent response was needed, the top managers had decided on the big picture. In order to adapt to the unfavourable changing situation, the Company became more responsive, more flexibile and focused on building effective response strategies and plans. Senior management had planned evaluations and solutions for the worst case scenario, when the crisis would evolve over time.
Head of Chartering and Operation department, Mr. Pham Van Nghia, reported that it’s crucial to change: from spot voyage to short time charter, from short turnover voyage to long distance one so that vessels could sail at sea more than 14 days compulsory quarantine, from high freight market to lower to exchange continuous sailing without ballasting, etc. PV Trans Oil had adjusted their operations, finances, sanitary and safety protocols as well as working practices and procedures. Hence, by the end of 2020, PVTrans Oil had reached its 2020 goal with Profit of 144% and contribution to state budget of 151% ; also marked a year with the highest profit ever.
PV Trans Oil also announced its cutting-costs strategy to deal with the long-term effects of the COVID-19 while remain operational to maintain business continuity. By optimization of Opex fleet costs and fuel consumption, Company’s administration costs had decreased by 5-7%.
Understand that COVID-19 had pushed the costs for crew change double, triple to impossible; however, crew change are vital and can not be postponsed indefinitely, PV Trans Oil had made mission possible.
“If crew change was difficult in ports where complements vessel schedules or operations, or the quarantine restrictions incurring significant costs and inconvenience, we can deviate vessels back to Vietnam, where our government understand perfectly what our crew needs and they can be safely home.” “PV Trans Oil always work to find a solution.” The top managers said.
As the results, in 2020 the Company had succesfully conducted deviation for most of whole fleet back to Vietnam. While the world situation remains complex, and the ongoing pandemic created different reality, each and every member of PV Trans Oils had done everything in their power to make repatriation happened and all of Company crew were able to reunite with their families.
Spoken at the meeting several weeks after getting back, Captain Vu Van Huan stated that the key for that achievement was transparent and effective communication between ship and shore. Colleagues at shore had tried best to boost crew’s morale and take care of their overall wellbeing during most difficult time. Also, PV Trans Oil had set up communication channel which enabled crew to speak with their families almost everyday to relieve tension. Together with the effort to reach agreement with Charterers, despite the huge costs, PV Trans Oil had solved the crew change challenge.
One more thing to note, although Company fleet operated in the pandemic hard hit regions such as Indonesia, Malaysia, India, Singapore, Middle East, etc; none of Company member got infected. This highlighted PV Trans Oil’s strict regulations and procedures of COVID-19 preventation & protection both onboard and ashore.
In 2020, PVTrans Oil also had completed the sale of aged tanker MT PV Oil Venus and seizing the market opportunities to purchase one modern 13,000 DWT oil/chem vessel Korean 2010 built renamed as PVT Venus. Additionally, Company also expanded their logistics activity by transporting Wind Power equipment (Oversized and Overweight Cargo) contributing to National Clean Energy Development Plan.
In the time of adverse cash flows, cutting costs mean additional savings to sustain to uncertainty, many cannot avoid the fact that employees will be affected. Within the industry, thousands of people were dismissed or laid off. However, PVTrans Oil still ensured full employment and stable income for employees with an average salary of VND 23 million per person per month and 4% higher than 2019. Spoken at the meeting, Ms. Le Thi Thu Hong – Company Labor Union Representative, insisted that it was due to the unity of the whole Company.
Mr. Pham Viet Anh – CEO of PV Trans Corporation highly praised and appreciated the achievements of PVTrans Oil in such a challenging year. PVTrans Oil had dramatically responsed to the pandemic and reformed the whole company. With this, PVTrans Oil was honored “The Best Restructured Company” for the 2nd consecutive year. Mr. Pham Viet Anh also encouraged PV Trans Oil to continue their efforts and determination to another tough year ahead.
At the end of the event, PV Trans Oil’s Chairman and CEO honored Top Department/Crews Individuals of 2020. In addition, the Company acknowledged the support of PV Trans, stakeholders, banks, suppliers, and partners which had helped it during the difficult time.
PV Trans Oil Employee Appreciation Day 2020 was a chance for BOD and top managers to honor Company achievement and thank their employees for their hard work and effort they have put into throughout the year. The Company managers make sure that they never miss this opportunity to say congratulation upon their employee’s achievement.
Some other pictures at the event: