On 4/27/2012 in HCM City – Petrovietnam Fertilizer and Chemicals Corporation (PVFCCo – stock code: DPM) successfully held the 2012 Annual General Meeting of Shareholders.
Participants in the Meeting were 516 shareholders representing 83.1% of shares with voting right. For the securities management agency, the Meeting was honored to welcome Mr. Tran Dac Sinh – BOD’s Chairman of Ho Chi Minh City Stock Exchange (HOSE);for the parent company – the biggest shareholder – Vietnam National Oil and Gas Group (Petrovietnam – PVN), Mr. Nguyen Sinh Khang – Vice President – attended the Meeting.
Atthe Meeting, PVFCCo’s leaders presented reports on BOD’s activities in 2011, report of the President & CEO on 2011 activities, business production targets for 2012, 2011 financial statements, activity report of the Supervisory Board, the statement for approval of the gas sales contract with PV Gas and the statement for adopting the policy of investment in Ca Mau Fertilizer Plant project.
Regarding the business resultsof 2011, on behalf of the BOD, the Executive Board and all employees of PVFCCo, Mr. Bui Minh Tien – Chairman of the BOD respectfully expressed his deep gratitude to leaders, management agencies and especially shareholders who had supported, accompanied and together made proud and significant success of PVFCCo, as evidenced by fulfilling and exceeding all targets adopted for 2011 by the Shareholders’ General Meeting. This success had a special meaning as 2011 was the last year to complete preparations for the market status conversion and also was the hinge year of the plan to speed up development during 2011-2015 period.
2012, as anticipated by many economists, will continue to be a very difficult year for the economy both national and worldwide. For PVFCCo, this will be a year full of changes and challenges as the urea market shifts to oversupply status and will experience fierce competition, while raw materials cost continues rising, fertilizer prices in the country and the world will continue with unpredictable changes.
According to the presentation of Mr. Cao Hoai Duong – President & CEO, PVFCCo plans to achieve the turn over of VND 13,921 billion, pre-tax profit of VND 2,000 billion and net profit of VND 1,787 billion. As compared with the plan disclosed in early 2012, the plan submitted to the General Meeting of Shareholders reduces the total revenue from VND 15,810 billion down to VND 13,921 billion. Despite lower production output and revenues, PVFCCo still remains its profit target thanks to cost saving measures on production management, sales, cutting VND 150 billion in operating costs.
In QuarterI, the total revenue was down by 4% as compared with the quarterly plan because the revenue from Ca Mau Fertilizer was slightly lower than planned, but the net profit jumped to VND 924 billion, accounting for 52% of the year plan. The Executive Board has explained this detail at length to the shareholders that because the fertilizer price level in Quarter 1 was higher than that of in 2011, the falling point of prices in 2012 has not arrived yet.
On the other hand, as the weather conditions of the winter-spring crop extended to Quarter I, the fertilizer volume that should have been consumed in November last year was sold in Quarter I this year. The objective reason is that Ninh Binh Fertilizer Plant and Ca Mau Fertilizer Plant have not come into operation or their operation is behind schedule, the PVFCCo’s fertilizer was selling well. This situation will change in the coming quarters whensome fertilizer plants are in stable operation, as such, the selling price can hardly be as high as at present.
At the Meeting, the BOD of PVFCCo submitted the Statement for adopting the policy of investment of 51% in Ca Mau Fertilizer Plant project. This is an internal transaction with the big shareholder – PVN so PVN was not entitled to vote, shareholders other than PVN would have the right to make decision. Therefore, the BOD initiatively requested 2 independent shareholders not belonging to the Company to participate in the vote counting board, i.e. representatives from ACB investment funds and Vinacapital.
With the detailed, persuasive presentation supported by scenarios, figures, situations, opportunities, specific bases, both in quantitative and qualitative together with satisfactory answersto questions, concerns of investors, the plan of 51% investment inCa Mau Fertilizer Plant was passed by a majority of attending shareholders eligible for voting. This is an important decision which has great influence on the development and maintenance No.1 position of PVFCCo in the domestic and regional fertilizer market.
In addition, the shareholders also voted to adopt by a majority withall other submitted contents, details of the Meeting’s Resolutions would be provided to the shareholders on schedule and according to provisions of laws and regulations of PVFCCo.
As for the BOD, the Executive Board of PVFCCo took the initiative in receiving bonuses less than 30% as compared with those approved by the Shareholders” General Meeting, and at the same time undertook that, with the policy of investment in Ca Mau Fertilizer project, they would only receive bonuses when Ca Mau Fertilizer Plant is profitable.
The 2012 Annual General Meeting of Shareholders had a special meaning and was a great success. In response to the gratitude of PVFCCo’s leaders about cooperation, sharing, careful consideration to make wise decisions of shareholders, the shareholders expressed their thanks to leaders as well as employees of PVFCCo who had worked hard for the development of the Corporation, achieved good results, noting the efforts in investment relation activities. It is especially interesting that in the meeting, a shareholder was inspired to compose a poem and shared it with all participants.
Follow are some picture of the meeting:
