HCMC, August 2nd, 2018- PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo – Security Code: DPM) said that despite of facing challenges from rising gas prices and fiercer competition, PVFCCo has made efforts to synchronously implement solutions and achieved positive results over the first 6 months of 2018.

 In terms of gas input, because of being affected from increased gas prices, in the first 6 months of 2018, the input gas prices for PVFCCo”s production have increased by about 19% over the same period in 2017 and more than 24% over the planned price in 2018. Specifically, the average gas price in 2017 is US$5,027/million BTU, the planned gas price for 2018 is US$4,906/million BTU and the estimated gas price in the first 6 months of 2018 is US$6.07/million BTU (above prices including VAT and freight charges). In addition, cheaper imported fertilizers continue to pour into the Vietnamese market, in which the volume of imported ureawas estimated at 261 thousand tons, increased by 16.2% over the same period of 2017 (according to data from MARD).

Facing such challenges, PVFCCo has actively implemented projects and determinately made efforts in production and business management. On the implementation of the projects, important projects were basically completed, contributing positively to the growth of PVFCCo. The NH3 unit revampedproject has been handed over and officially operated from Quarter 1 of 2018. Phu My NPK Chemical Technology Plant has basically completed the commissioningphase and is ready to be put into commercial operation in the Quarter 3 of 2018. The completion of these two projects significantly contributed to PVFCCo”s business performance and profitability in the first half of this year.

Business outcomes are very positive with the financial business targets exceeding the plan. Specifically, production output of Phu My Fertilizer Plant in the first 6 months of 2018 is estimated at 427 thousand tons, fulfilling 108% of the plan for the first 6 months and 53% of the plan for whole this year. Salesof Phu My urea products in the first 6 months was estimated at 437 thousand tons, fulfilling 53% of the plan for the whole year. Other fertilizers’ sales were estimated at 195,000 tons, gaining 151% of the plan for 6 months and fulfilling 87% of the plan for the whole year. Especially, although just operating in the commissioningphase, Phu My NPK products from Phu My NPK Chemical Technology Plant have reached the commercial standards, have been launched to the market about 22,000 tons and warmly received by farmers. Chemical segment also achieved positive outcomes, in which NH3 sales increased sharply, reached over 21 thousand tons, increasing 235% over the same period because PVFCCo has officially operated a NH3 Unit’s revamped line from the beginning of the year 2018. In addition, in the first 6 months of 2018, PVFCCo has sold more than 27,000 tons of other chemical products including UFC85, CO2 and petrochemicals.