(PetroTimes) – In addition to leading the country in fertilizer production and trading with the brand name "Phu My Fertilizer," PetroVietnam Fertilizer and Chemicals Corporation – JSC (PVFCCo) is also in a strong position in the petroleum chemical sector.
Since many years ago, PVFCCo has focused on developing the field of chemical production, focusing on petroleum chemical products, and specialized chemicals. In April 2014, PVFCCo approved an investment project to increase the capacity of the NH3 workshop of Phu My Fertilizer Plant by 20% of the designed capacity, equivalent to an increase of 90 thousand tons/year (from 450,000 tons/year). /year to 540 thousand tons/year), using the same Haldor Topsoe A/S (Denmark) technology.
Construction started on September 18, 2015, with Technip (Italy) – PTSC as the general contractor. By January 2018, the upgraded NH3 factory was officially launched, supplying products to the market. The increased NH3 product is used as raw material for the Phu My NPK Factory with chemical technology and meets the increasing domestic demand for NH3 to produce fertilizer, rubber, and metallurgy.
Right after that, PVFCCo had a smooth start when at the same time, NH3 price in the market increased, reaching over 320 USD/ton, equivalent to over a 30% increase compared to 1 year ago. This price level then continued to be maintained and continued to increase.
Since then, PVFCCo has focused on two main product lines: fertilizers and chemicals. In particular, in the past 2 years, PVFCCo has actively developed the chemical segment to strive to become the leading enterprise in the country and the region in the fertilizer and chemical industry for oil and gas.
PVFCCo owns various chemical products, including NH3 (ammonia), UFC 85, CO2, and specialized petroleum chemicals. Total production per year reaches over 600 thousand tons, of which NH3 is the largest, with 540 thousand tons, leading in supplying NH3 in Vietnam. PVFCCo's contribution to revenue and profit from the chemical segment is increasing, accounting for about 20% of PVFCCo's total profit.
In the first 6 months of 2022, PVFCCo's NH3 supply to the market was high, reaching 36,000 tons (estimated at 70,000 tons in 2022). Thereby, PVFCCo continues to affirm its leading position in supplying NH3 to thermal power plants, monosodium glutamate, and rubber… maintaining a market share of about 90% in the southern market. Due to the high price of chemicals in the world, the profit margin of PVFCCo's chemical product group increased sharply, especially NH3. If in 2020, the gross profit margin of chemicals will reach 23%, in 2021, it will get 46%, and in the first 6 months of 2022, it will increase to 55%.
In the coming time, PVFCCo will continue to implement a new development strategy for the chemical segment with the expectation that chemical revenue will account for 50% of total income, helping PVFCCo become more and more balanced and take a firm step in both two legs "fertilizer" – "chemical."
