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VietNamNews

Phu My optimistic of first-half results

Update: June, 20/2015 - 08:25
VFCCo projects its total sales will reach over VND4.3 trillion ($197.2 million) and bring in a profit of VND720 billion ($33 million) in the last six months of the year, slightly lower than the first half. — Photo dpm

HA NOI (VNS)— PetroVietnam Fertiliser and Chemicals Corporation (PVFCCo), better known as Phu My Fertiliser (DPM), estimated its first-half revenues will reach VND4.945 trillion (US$226.8 million) and pull in profits of VND810 billion ($37.2 million). The prediction would mean 3 per cent more in revenues and 13 per cent more in profits than the target it set at the start of the year.

Other fertiliser companies including Phu My urea, Phu My NPK, Phu My Kali (potassium), Phu My SA and Phu My DAP also did well, surpassing their targets.

According to PVFCCo General Director Cao Hoi Duong, the encouraging results could be attributed to lower oil prices in the global market, which helped reduce gas input costs at the Phu My Fertiliser Plant.

The rising quality and reputation of Phu My fertiliser products in the market and a strong distribution network both contributed to positive sales in the first six months, Duong said.

Phu My fertiliser products currently hold 48 per cent of the domestic market share. According to a 2014 survey conducted by the market research firm Nielsen Vietnam, the Phu My fertiliser brand continued to best other major fertiliser brands in Viet Nam.

On June 7, PVFCCo signed an engineering, procurement, construction and commissioning (EPC) contract with a contractor consortium to expand Phu My's NH3 Unit and build the Phu My NPK Complex.

The complex project, with a total investment capital of VND5 trillion ($229.4 million), will use up to date technology to produce local high-quality NPK fertiliser to take over the import dominated NPK market. The complex is slated to operate from the second quarter of next year.

According to Duong, growing competition, rising input costs due to non-deductible VAT for fertiliser products, as well as volatile foreign exchange rates and globally declining prices are the main challenge to the company's second half of the year.

PVFCCo projects its total sales will reach over VND4.3 trillion ($197.2 million) and bring in a profit of VND720 billion ($33 million) in the last six months of the year, slightly lower than the first half.

DPM shares were traded around VND29,000 ($1.33) on the HCM Stock Exchange in recent sessions.

In March, its subsidiary South-East PetroVietnam Fertiliser & Chemicals Co listed 12.5 million shares on the Ha Noi Stock Exchange under the code of PSE. The company said other subsidiaries including PVFCCo South-West, PVFCCo Central, PVFCCo North and PVFCCo Packaging would debut shares in the next two quarters of the year. — VNS


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