Dtck.vn – The PVFCCo’s Annual General Meeting of Shareholders (AGM) was successfully held in the excitement of shareholders not only about increased dividend but also the reliable long-term development strategy and improved management of DPM. The reporter of Dau Tu Chung Khoan (Securities Investment) newspaper had a conversation with Mr. Bui Minh Tien – Chairman of the Board of Directors of DPM specifically on these issues.

Can you tell us how the DPM’s abundant source of cash will be used and does DPM have a policy to pay high cash dividend in the following years to attract long-term investors ?
It is expected that after additional payment by 20% of dividend in 2012 (equivalent to 760 million dongs), DPM still has more than 5,000 million dongs in cash. During pending disbursement period of large projects, this amount of money will be deposited at large reputable banks.
Actually, DPM is preparing to implement several projects in fertilizer and chemical production whose total investment can reach up to 1 billion US dollars. In the next few years, our demand for disbursement for projects will be very huge while the cash we have only meets part of demand, therefore, DPM must look for the rest from the outside. It has been suggested that DPM should invest in a few other fields to improve the cash flow efficiency, but our point of view is that in the current situation, the preservation of assets is still a suitable option. We will only focus on our main field which is fertilizer and chemical production and business for the oil and gas industry and agriculture.
Regarding dividend, as presented and approved at the last AGM, dividend rate for 2013 is 25%, but if the business results are far better, it can be respectively increased. The investors can be assured that investment in DPM always brings stable and long-term values.

In 2012, DPM has received the transfer of Ut Xi Corporation stocks for clearing debt, thus how will be treated the receivables related to Petrovietnam Trade Union Finance Investment Corporation (PVFI) Sir?
The collection of debts as investment trusts at PVFI has been carried out with many drastic solutions since 2011 so far, most of them have been recovered with PVFI’s assets. Regarding the remaining receivables, we’re still seeking solutions to recover. In the current difficult economic situation, debt collection is really not simple, but we will endeavor to get maximum recovery.

The competition in the fertilizer market is getting more intense, what did DPM do to expand both domestic and export markets for its products ?
In the competition more and more intense as now, maintain the current market share is already a big challenge. Since few years ago, we were prepared for this situation. The manufacturing process is improved to deliver stable and higher quality products to the market; the management process is also improved to lower production costs; marketing and advertising activities are refined as well; the export is maintained for the main purpose of retaining the export market as our products are very well sold in the domestic market. In case of oversupply, we will balance the import and export to increase business performance. In my opinion, other importers were also aware of the market’s current situation and they will have to appropriately adjust the fertilizer export and import.
I believe that by our efforts in the recent years, our products will keep the dominant position in the market as before.

How does input gas price result in DPM’s business and production in the 1st quarter as well as expected for 2013 ?
According to the signed itinerary to raise gas price, since 2012, gas price will only increase by 2% until 2015. This change combined with the rise in some raw materials prices and freight will definitely result in 2013’s profits. We set as target 2,120 billion dongs of profit before tax for the whole year. This figure is consistent with the current context of fierce market competition and the forecast of fertilizer price which won’t be as high as the one in the last year 2012. Thankfully, profit before tax in the 1st quarter of 2013 is still pretty good, reaching 793 billion dongs, equal to 37.4% of the year’s plan.

It is known that in the Board of Directors (new term 2013-2018) of DPM, there is a non-executive member who doesn’t belong to Petrovietnam. In your opinion, what does it mean to DPM and DPM’s shareholders ?
In term of management, the Board of Directors (BOD), the Board of Management and DPM’s shareholders always wanted to create a united, cooperative, understanding atmosphere and harmonize the interests of the parties. The presence in the BOD of a member introduced by the shareholders outside PVN will reinforce this atmosphere and let the investors know that DPM always try to please all our shareholders.