Vietnam fertilizer major PVFCCo tops H1 targets

Petrovietnam Fertilizer and Chemicals Corporation (PVFCCo), a subsidiary of state-owned oil & gas group Petrovietnam, produced 448,204 tons of urea in H1/2024, up 17% year-on-year, achieving 106% of the period’s target and 53% of the annual plan.

At a July 12 working session with a Petrovietnam delegation led by general director Le Ngoc Son, PVFCCo chairman Nguyen Xuan Hoa said that faced with both opportunities and challenges, the company had “synchronously and flexibly” taking several management measures to optimize production and business operations. This had helped it make the most of advantages while limiting adverse effects from difficulties in the market.

While there was fierce competition in the fertilizer market, drastic measures taken right from the beginning of the year, sales policy changes, high agricultural product prices and the expansion of Vietnam's agricultural export markets had helped the company surpass fertilizer sales and chemical sales targets for the period by 6% and 8%, respectively.

With the production and business situation expected to face more challenges in the second half of the year, including input fluctuations and a rising USD/VND exchange rate, PVFCCo will strive to achieve goals assigned by Petrovietnam, Hoa said.

It plans to produce and supply the market with over 650,000 tons of fertilizers and chemicals of all kinds. For this, the company will continue to implement management, production and business solutions as needed, he added.

He also made proposals on issues related to gas sources and prices to ensure effective production and business activities.

Petrovietnam leaders gave directions regarding the building of medium and long-term strategies, restructuring and investment, chemical research and development, gas sources, training, digital transformation, social security, policies and salaries and VAT on fertilizers.

They applauded the good business results achieved by PVFCCo in the first six months of the year amid difficult business conditions.

Petrovietnam general director Son acknowledged and appreciated the efforts of PVFCCo leaders and staff in carrying out needed tasks for achieving positive results in the first half of the year.

On difficulties regarding gas and gas prices, he said that the group will support PVFCCo in accelerating the progress of field projects to compensate for gas shortages in the near future. However, the company must also proactively prepare plans for other raw material sources, he said.

Son also asked PVFCCo to focus on "renewing old motivation" by optimizing operational efficiency of existing infrastructure, and “adding new motivation" from researching new products, specifically in the chemical segment, while developing a strategy to adapt to the energy transition trend.

“Attention should also be paid to investment, project settlement, restructuring, management and digital transformation activities,” he said.

Son asked the company to continue its good work and stay united to meet goals assigned by the parent company.

PVFCCo chairman Hoa pledged to work closely with Petrovietnam to complete all the assigned plans and contribute to the overall success of the group.

PVFCCo, listed on the Ho Chi Minh Stock Exchange as DCM, closed Tuesday’s session at VND39,100 ($1.54) per share.