Vietnam’s chemicals industry has reported mixed first half results this year with some firms earning increased revenues and profits and several others seeing their profits plunge.
For instance, the Lam Thao Fertilizers and Chemicals JSC reported profit growth, while Duc Giang Chemicals Group and Vietnam Apatite-Phosphorus JSC said it profits went down significantly.
Lam Thao Fertilizers and Chemicals JSC (Lafchemco), a subsidiary of state-run chemical group Vinachem, reported H1 after-tax profits of VND65.5 billion ($2.76 million), up 13.6% year-on-year, from net revenues of VND2.08 trillion ($87.9 million), up 14%.
In Q2, Lafchemco, listed on the Hanoi Stock Exchange (HNX) as LAS, posted net revenues of VND867.7 billion ($36.7 million), and after-tax profits of VND32.3 billion ($1.37 million), up 12% and 20% year-on-year, respectively.
As of June 30, 2023, LAS's total assets had stood at VND2.05 trillion ($86.6 million), down 10% compared to the beginning of the year. Of this, cash and cash equivalents decreased 50% year-on-year to VND22.8 billion ($964,000), and inventories declined 48.2% to VND638.4 billion ($26.99 million).
For 2023, the company has set revenue and pre-tax profit targets of VND3.25 trillion ($137.34 million) and VND120 billion ($5.07 million), respectively.
On the HNX, the LAS share closed Monday’s session at VND12,900 ($0.55).
Meanwhile, Duc Giang Chemicals Group (DGC), Vietnam's leading chemicals company, recorded net revenues of nearly VND4.9 trillion ($206.99 million) in H1, down 35.9% year-on-year; and after-tax profits of VND1.71 trillion ($72.07 million), down 49.9%.
The company reported Q2 net revenues of VND2.41 trillion ($102 million) and after-tax profits of VND881.8 billion ($37.3 million), down 39.7% and 53.5%, respectively.
At the end of June, DGC's total assets had stood at VND13.67 trillion ($577.9 million), up 2% compared to the beginning of the year. Cash and short-term financial assets were VND8.59 trillion ($363.2 million), accounting for 62.8% of total assets.
For this year, DGC has set a revenue target of VND10.88 trillion ($459.9 million), down 24.7% year-on-year; and after-tax profit of VND3 trillion ($126.87 million), down 50.3%.
The company said it expected yellow phosphorus (P4) revenues to reach VND4.61 trillion ($194.87 million) this year, accounting for 42.4% of the total; and that of phosphoric acid to fall 20.1% to VND2.18 trillion ($92.35 million).
On the Ho Chi Minh City Stock Exchange, the DGC share price closed Monday at VND72,300 ($3.06).
Vietnam Apatite-Phosphorus JSC (VAPAC), a DGC subsidiary, reported H1 net revenues of VND885.6 billion ($37.4 million) and after-tax profist of VND149.9 billion ($6.34 million), down 47.8% 73.9% year-on-year, respectively.
VAPAC posted net revenues of VND452.1 billion ($19.11 million) and after-tax profits of VND77.2 billion ($3.3 million) in Q2, down 35.5% and 65.8%, respectively.
VAPAC said Q2 revenue decreased by 35.46% due to a decrease in consumption volume and the selling price of yellow phosphorus products dropping by 34.14%. But the cost of goods sold only declined by 19.14%.
As of June 30, VAPAC's total assets had reached VND975.1 billion ($41.2 million), down 18.4% compared to the beginning of the year, of which fixed assets accounted for VND357.9 billion ($15.1 million), or 36.7%.
For 2023, VAPAC has set revenue and after tax targets of VND1.79 trillion ($75.6 million) and VND416 billion ($17.6 million), respectively.
VAPAC, listed on the Unlisted Public Company Market (UPCom) as PAT, closed Monday at VND81,900 ($3.46) per share.