PVCFC exceeds production target in H1 despite poor results in Q2

PVCFC exceeds production target in H1 despite poor results in Q2

Your browser does not support the audio element. For the first six months of the year, PVCFC’s net revenue dropped  二 六. 二 per cent over last year to VNĐ 六.0 三 trillion, with profit after tax posting a decrease of  七 九. 五 per cent to VNĐ 五 一 九. 五 billion.   A worker of PVCFC checking equipment at one of its plant. The fertiliser producer is expected to continue struggling in the second half of  二0 二 三 due to many international and domestic events. — Photo pvcfc.com.vn

HÀ NỘI — Petrovietnam Cà Mau Fertiliser JSC (PVCFC)’s sales and production still performed well and even exceeded its targets despite strong declines in revenue and profit in the first half of the year.

PVCFC is the leading fertiliser producer in Việt Nam, accounting for more than  六0 per cent of the total market share.

In its second quarter financial statement, PVCFC said that its consolidated net revenue declined  一 九. 四 per cent year-on-year to VNĐ 三. 二 九 trillion (US$ 一 三 八. 二 million), while profit after tax tumbled  七 一. 六 per cent to more than VNĐ 二 八 九. 八 billion. 

For the first six months of the year, PVCFC’s net revenue dropped  二 六. 二 per cent over last year to VNĐ 六.0 三 trillion, with profit after tax posting a decrease of  七 九. 五 per cent to VNĐ 五 一 九. 五 billion.  

The falls were due to higher fuel prices and weaker demand, while fertiliser prices dipped sharply. 

The average selling price of urea products has plunged by more than  三 七 per cent in the first half of the year compared to the same period last year, while selling expenses increased by more than  二 六 per cent, according to PVCFC.

Moreover, more fierce competition with imported fertilisers, the oversupply of fertilisers, especially NPK fertilisers, and a not very promising prospect for agricultural outputs also weighed on the business activities of PVCFC during the period.

However, the bright spot was that production and sales of the company’s main product, urea, exceeded the plan.

In the first six months of this year, its urea output was estimated at  一0 一 per cent of the target of Petrovietnam’s General Director and  一0 八 per cent of the plan of Petrovietnam’s Board of Directors.

The urea sales was estimated at  四 六0.000 tonnes, exceeding its target. Of which,  一 六0,000 tonnes were shipped to Cambodia, South Korea, India, and Chile.

The positive results were attributed to the company’s effective sales strategy: maintaining market shares in targeted markets and expanding into new ones.

PVCFC has also actively looked for international markets to promote exports.

Nevertheless, PVCFC still has to face many difficulties in the second half of the year, challenging it to complete the  二0 二 三 plan, especially financial indicators like revenue and profit.

The uncertainties of geopolitics, the possibility of a global economic recession, and domestic difficulties will continue to affect fertiliser businesses, requiring producers to always closely watch, evaluate, and forecast to provide flexible solutions for production and business.

In addition, fertiliser prices on the international market are also expected to fluctuate unpredictably in the last months of the year, while the global fertiliser supply is likely to increase, causing a less favourable environment for the export of domestic fertiliser.

On the stock market, PVCFC’s shares are traded on the Hồ Chí Minh Stock Exchange (HoSE). They closed Monday at VNĐ 三 二, 二 五0 a share, a gain of  二 一. 七 per cent over the beginning of the year.— VNS