Petrovietnam Fertilizer & Chemicals Corporation (PVFCCo – Securities code: DPM, the Phu My fertilizer manufactuer and trader) stated that PVFCCo reached remarkable achievements in all aspects thanks to its operation efforts in spite of continuously facing with challenges in the first 9 months of 2018.
It could be said that in the first 9 months of this year, PVFCCo had to confront with “double” challenges originating from the price of input materials and the demand of fertilizers reduced because of the sharp decrease in price of agricultural products. Due to the effect of increase in oil price, the price of input gas used for fertilizer manufacturing has increased about 28% in comparison with the same period of 2017 and about 29% in comparison with planned price in 2018. Specifically, the average price of gas in the first 9 months of 2017 is $4.94/ million BTU, the planned price in 2018 is $4,9/ million BTU, in fact, in the first 9 months of 2018, the price is $6.31/million BTU, as a result, for every $1/million BTU the price of gas increased, the manufacturing cost of PVFCCo rose about VND 500 billion /year.
Agricultural manufacturing and fertilizer market in the first 9 months of this year have been greatly affected by extreme weather and the sharp decline in price of agricultural products. According to statistics of Ministry of Agriculture and Rural Development, as compared to the same period of 2017, nationwide rice-planting areas in has fallen by 160,000 ha; the price of key agricultural products such as coffee has decreased by more than 20%, the price of pepper has decreased by 30% and series of pepper trees has been dead because of epidemic diseases, the price of rubber has reduced by nearly 20%, etc. Besides, storms, floods and heavy rains occured on a large scale, making the demand of fertilizers in Summer-Autumn crop/rainy season – with the largest consumption of fertilizers – considerably decrease.
In this extremely challenging concept, PVFCCo actively prepared many plans, offered solutions and took efforts in all aspects: corporate management, cost administration; implementing projetcs; operating, manufacturing, trading, researching and developing new products.
PVFCCo actively implemented projects and, since the beginning of 2018, revamped NH3 unit has been put into operation commercially; up to 8/2018, NPK chemical technology plant has been also put into commercial use, which have a considerabe contribution to the productivity increase of PVFCCo in the first 9 months of this year.
