Economy
Nghệ An Province anticipates record FDI amidst economic upswing
1.
|
| A wet process phosphoric acid plant of Đức Giang Chemicals. The company expects declines in business results in Q3. Photo ducgiangchem.vn |
HÀ NỘI — After a decrease of 49.9 per cent in profit in the first half of the year, Đức Giang Chemicals Group JSC (DGC) expects business results to worsen more in the third quarter.
The company plans a revenue of nearly VNĐ2.4 billion (US$1 billion) and a profit after tax of VNĐ800 billion this quarter, down 35.5 per cent and 47.1 per cent year-on-year, respectively.
It's set to spend VNĐ5 billion to finish the Na2SiF6 factory and VNĐ20 billion on the NPK production line in Đắk Nông Province. Đức Giang will also order equipment for the Đức Giang-Nghi Sơn project, which is worth VNĐ200 billion.
The company has announced the completion of the purchase of 100 per cent of Phosphorus 6 JSC’s shares, marking it the largest M&A deal in Việt Nam's chemical industry to date.
The group successfully purchased 26.3 million shares of Phosphorus 6 with a purchase price of VNĐ635 billion, equivalent to VNĐ17,500 a share.
The deal aims to create a chain of intense-processing products such as H3PO4, Sodium Tripoly Phosphate – STPP and stabilise the phosphorus export market, helping boost the company's revenue and profit.
In the second quarter, Đức Giang Chemicals reported sales of VNĐ2.4 billion, a decline of 39.7 per cent over the same period last year. Its profit after tax was VNĐ881.8 billion, while the gross profit margin dropped sharply from 53.2 per cent to only 39 per cent.
The company said that weak purchasing power in the domestic and international markets caused a decrease in consumption volume and selling prices of several goods in the first half of this year.
In particular, the consumption of yellow phosphorus fell significantly by 44 per cent in volume and 57 per cent in revenue. Wet process phosphoric acid (WPA) and fertiliser also experienced gradual decreases.
For the first six months of the year, it accumulated revenue of nearly VNĐ4.9 billion and profit after tax of more than VNĐ1.7 billion, down 35.9 per cent and 49.9 per cent, respectively. — VNS
