Phu My Fertilizer estimates $12 mln in Q1 pre-tax profit

Petrovietnam Fertilizer and Chemicals Corporation (Phu My Fertilizer) expects to earn VND3.3 trillion ($132 million) in revenue and VND300 billion ($12 million) in pre-tax profit in the first quarter of 2024, exceeding both targets, according to CEO Phan Cong Thanh.

He said the firm’s total production in the quarter was estimated at over 270,000 tons of fertilizer and chemicals of all kinds. Total sales of fertilizer and chemicals reached over 300,000 tons and 31,000 tons, surpassing the quarterly targets by 10% and nearly 20%, respectively.

This year, the corporation aims to produce more than 1 million tons and sell nearly 1.4 million tons of fertilizer and chemicals, with expected total consolidated revenue of VND12.76 trillion ($511.32 million) and pre-tax profit of VND660 billion ($26.45 million), Thanh said.

Fertilizer prices are expected to continue falling, so the firm has set a lower revenue target than last year, he added.

According to Thanh, due to global complications, unpredictable economic fluctuations, and the risks of severe drought and saltwater intrusion due to the impact of El Nino, the latest forecasts show that the agricultural industry and its input - the fertilizer industry, will still face many challenges throughout 2024.

Market forecasts also indicate that an oversupply of urea and NPK fertilizer will continue in both the international and domestic markets. Domestically, the export tax has not been adjusted while value added tax (VAT) on fertilizer will be considered by the National Assembly this year, meaning it will only take effect in 2025 at the earliest.

“These factors will greatly affect the business situation of agricultural and fertilizer enterprises this year,” he noted.

To successfully complete its 2024 plans, Thanh said Phu My Fertilizer has been accelerating the implementation of tasks since the start of the year. During the first quarter, the company achieved 26% of its yearly revenue plan and 45% of its profit target.

“This result is a premise for the corporation to continue its efforts to fulfill the whole-year plan,” he stated.

In its vision to 2045, Phu My Fertilizer will meet international standards, creating a sustainable development value chain.

To realize it, chairman Nguyen Xuan Hoa said that the corporation will strengthen the management of finance, volatility and risks; improve asset use efficiency; prepare resources to deploy new investment projects; take drastic measures for digital transformation with a focus on "bringing the best experience to customers"; and promote mergers and acquisitions.

"The corporation will promote digital transformation, aiming to create breakthroughs in production and business activities. From 2024, it will strongly implement digital transformation at every stage, every unit, and every link of the value chain." Hoa added.

The company will also increase investment and develop new products, especially those processed from existing products such as hydrogen peroxide (H2O2) and diesel exhaust fluid (DEF).

Phu My Fertilizer is listed on the Ho Chi Minh Stock Exchange as DPM, which closed Tuesday at VND35,150 ($1.41) per share.