State-run group Vinachem recorded a profit of VND5,404 billion ($224 million) in the first nine months of the year, nearly triple the year's target, as fertilizer prices remained high.
This is the Vietnamese giant's record-high profit since it started publishing its financial indices in 2014.
The company's production value in the third quarter was estimated at VND15,576 billion ($645.4 million), up 32% year-on-year, fulfilling 93% of the year's plan.
Consolidated revenue grew 28% to VND15,993 billion ($662.7 million), while consolidated profit reached VND1,182 billion ($48.97 million), respectively.
Vietnam's post-pandemic recovery has driven up consumer demand and the group has also benefited positive agro-forestry results, seeing a sharp increase in the country's farm produce exports.
Since the beginning of the year, fertilizer prices have been adjusted down from the peak level but still anchored high. The price of urea of many big domestic and import brands is from VND780,000 to VND840,000 per 50-kg bag. Other common kinds of fertilizers like DAP, potassium, and NPK are still priced at over VND1 million ($41.4) per bag.
However, Vinachem also said it has been affected by global uncertainties, global inflation pressure and the Russia-Ukraine conflict.
VnDirect Securities, a leading securities broker, expects global fertilizer prices to decrease because prices in North America have dropped sharply since March. Besides, China has approved an increase in yellow phosphorus capacity by 356,000 tons per year for the 2023-2024 period from the current 1.4 million tons. Therefore, the price of this item will cool down in 2023, the broker said.
Viet Capital Securities (VCSC) believes that urea prices will continue to stay high in the period 2022-2023 due to high gas and coal prices given they are main input materials.