State-owned Petrovietnam plans to keep its ownership ratio of 75.56% at its subsidiary Petrovietnam Ca Mau Fertilizer JSC (PVCFC).
In its restructuring scheme for 2021-2025, the group asked the State Capital Management Commission to submit this plan to the prime minister for approval.
Petrovietnam’s divestment from Ca Mau Fertilizer will be determined after its restructuring scheme is approved by the prime minister.
PVCFC will continue to increase its charter capital in accordance with revenue growth and development scale. At the same time, it will work with strategic investors to successfully implement Petrovietnam’s divestment roadmap.
Ca Mau Fertilizer has held a charter capital of VND5,294 billion ($218.13 million) for many years. Of which, Petrovietnam contributed VND4,000 billion ($164.8 million), or 75.56%.
In 2018, the company’s board of directors announced their intention to seek strategic investors to facilitate Petrovietnam’s divestment from 75.56% to 51%, but so far it has not yet realized this plan.
In the time to come, PVCFC said it will promote the fields of agrochemicals and clean energy in accordance with the energy transition plan and its orientation to develop into an energy corporation under Petrovietnam.
It will focus on researching new high-quality fertilizer products that meet new technology trends and are environmentally friendly.
Ca Mau Fertilizer, listed on the Ho Chi Minh Stock Exchange (HoSE) as DCM, posted revenue of VND9 trillion ($366.23 million) in the first nine months of 2023, down 21% year-on-year. Its nine-month net profit also plummeted by 81.2% to VND614 billion ($25 million).
By September 30, Ca Mau Fertilizer had nearly VND10 trillion ($406.9 million) in cash and cash equivalents, an increase of VND879 billion compared to the beginning of the year and accounting for 67% of total assets (VND14.7 trillion or $605.69 million).
On the stock market, DCM closed Thursday's session up 1.43% at VND32,000 ($1.32).