On 16/06/2020, at Phu My Fertilizer Plant, PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo – stock code DPM) successfully held the 2020 Annual Meeting of the Shareholder's Meeting.

This year meeting was attended by Ms. Tran Thi Thuy Linh – Deputy Manager of Listing control & evaluation Department from HCMC Stock Exchange, Mr. Dinh Van Son – Member of the BoD and Mr. Le Xuan Huyen – Vice President from Vietnam Oil and Gas Group (PVN) – the dominant sharer, members of BoD,  Board of Executives (BoE), Supervisors, key men from the Corporation and especially the shareholders accounted for 76.52% of the voting shares together with representatives from Deloitte Vietnam Company Limited – corporation auditor.

The Board of Directors run the meeting

At the meeting, officers from the corporation’s BoD, Supervisors and BoE delivered a series of reports on 2019 business review and 2020 plan; 2019 BoD activities; 2019 Supervisors’ activities and the proposal to nominate the Corporate auditor for 2020; 2019 Financial statements and Profit sharing, profit sharing plan for 2020; 2019 remuneration and reward of the BOD, the Supervisory Board and the plan for 2020; Proposal for appointment of a BOD member; Key points of the final accounting of 2019 natural gas purchase contract between PVFCCo and PetroVietnam Gas Joint Stock Corporation (PVGas); Shareholders’ authorization of the Board of Directors for gas sourcing and dealing.

Mr. Nguyen Tien Vinh, BoD Chairman delivered a speech at the meeting

In general, 2019 was a tough year when PVFCCo faced several challenges such as plant shutdown for an unexpected maintain opportunities, tough competition, agricultural product slump. However, thanks to efforts made by BoD, BoE, employees, attention and shouldering of the shareholders, especially that of the Mother Company – Vietnam Oil and Gas Group, PVFCCo miracly ended up the year with such achievements as fulfilling  almost all targets required by the Shareholder's Meeting, namely total fertilizer output of 865,610 tons, wherein urea production made up approx. 708 thousand tons, exceeding the year plan by 6%; Total sales reached 1.1 million tons, accounting for 7,831 billion VND in revenue and 467 billion VND in profit before tax (consolidated), equivalent up to 228% of the year plan. Before this positive yield, the Shareholder's Meeting approved a dividend  of 12% against face value in cash in 2019, making an increase by 2% as compared to that of 10% as adopted by Shareholders Annual Meeting of 2019).

Despite of remained difficulties of 2020 such as no signs of market improvement, Covid-19 outbreak causing general adverse effect, PVFCCo is pursuing high goals in a bold plan of 2020, namely, over 1 million tons of total output of fertilizers and chemicals, wherein 785 thousand tons of urea and 180 thousand tons of NPK; revenue of 9,237 billion VND, profit before tax of 513 billion; Dividend of 10%. In addition, PVFCCo will keep speeding up such other aims as organizational restructure, research and development in an attempt to realize a strategy of product diversification.

In the meeting, PVFCCo’s business and production activities in the first two quarters 2020 were updated to the shareholder by the BOD all the targets were achieved, even exceeded the plan. Production made up approx. 484 thousand tons, increasing by 60% compare to first semiannual 2019, wherein Phu My urea production made up approx. 430 thousand tons, fulfilling 55% of the whole year plan.

In term of consumption, while the market situation is fluctuating due to the pandemic and prolonged soil salinity, PVFCCo has implemented many solutions and applied flexible sales policies to maintain and expand market share. As a result, the consumption of fertilizer and chemical products in the first  two quarters 2020 is still growing optimistically. Particularly, the total consumption of fertilizer products was estimated at 550,000 tons, increasing by 29% over the same period. Expressly the output of Phu My urea rise approx. 400 thousand tons over the same period , fulfilling 51% of the year plan and increasing by 53% over the same period. The sales of NPK Phu My products are estimated at 54 thousand tons, rising by 31% over the same period. Total sales of chemicals in the first 6 months is estimated at over 64 thousand tons, fulfilling 56% of the year plan and rising by 70% over the same period, mostly due to the sharp increase in NH3 sales. UFC85 sales is estimated at 4,684 tons, fulfilling 52% of the year plan and increasing by 10% over the same period.

In the discussion part, shareholders actively contributed ideas, questions, and strategies. The leaders of PVN together with the BOD answered the questions of the shareholders, also updated information such as: Gas source and price, the implementation situation, the effectiveness of investment projects, the proposed solutions to overcome challenges, completion of the 2020 plan, costs reduction, the State divestment progress, the issue of VAT for fertilizer, the issue of insurance payment for the machine shutdown in 2019, etc.

Shareholders raised questions and contributed ideas at the meeting

On behalf of PVN – Mr. Dinh Van Son highly appreciated the outcome that PVFCCo had achieved in 2019, along with the ideas and suggestions of shareholders for PVFCCo. Being a Mother Company, the major shareholder, PVN is committed to supporting and facilitating favorable conditions to PVFCCo. He also emphasized that the companionship, sharing of shareholders had generated the motivation for PVFCCo to overcome the current difficult and challenging period as well as to make 2020 a brighter year. He requested the PVFCCo’s BOD and Management to seriously acquire, implement the appropriate ideas and contributions of the shareholders to improve the efficiency of their operations.

Mr. Dinh Van Son shared at the meeting

The shareholders also voted via statements and reports with a high number of consensus votes, electing 01 member from the Board of Directors to replace a member dismissed for retirement.

Shareholders voted at the meeting

On behalf of the BOD & Management and all the employees of PVFCCo , Mr. Nguyen Tien Vinh – Chairman of BOD respectfully expressed the gratitude towards PVN and the shareholders for attending, contributing ideas and sharing concerns about the operation of the Corporation in 2019 and the production and business plan in 2020. On the foundation of the deep awareness of the difficulties, challenges and the implementation of transparent, professional management, the BOD, Board of Management and employees of The Corporation committed themselves to their utmost determination and effort to implement solutions, take advantage of opportunities, overcome difficulties and innovate so as to grow and accomplish the tasks set out by the Shareholder's Meeting.

Resolution and Minutes of the meeting will be finalized by the Corporation and soon be announced to shareholders within the time limit prescribed in law.