PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo – Stock Code DPM) organized successfully its 2016 Annual General Meeting (AGM) in Phu My Fertilizer Plant on April 28, 2016.
The General Meeting was honored to welcome Mr. Tram Tuan Vu – Executive Vice President of HoChiMinh Stock Exchange (HOSE), Mr. Mr. Phan Dinh Duc, member of BoD and Mr. Le Manh Hung – Vice President from PVN as the Parent company – the biggest shareholder, 250 PVFCCo’s shareholders representing 72.5% of the common shares and members of the BOD, BOM, key officers of PVFCCo and its partners, journalists and representatives from Deloitte Vietnam Company Limited – auditor of PVFCCo’s Financial Statements.
At the meeting, PVFCCo leaders reported on its business activities in 2015 and major business targets in 2016; BOD’s activities; the Supervisory Board’s activities in 2015 and proposal for auditor appointment in 2016; financial statements in 2015; profit distribution method for 2016, profit distribution plan for 2016; remuneration, wages, bonus of BOD, Supervisory Board in 2016, the statement for its business lines adjustment and the ownership percentages of foreign investors at PVFCCo and the statement on PVFCCo’s development strategy.
Regarding the business results in 2015, Mr. Doan Van Nhuom – President & CEO of PVFCCo stated that despite a lot of difficulties such as the sharp decline in petrol and fertilizer prices, increasingly fierce competition due to the oversupply of urea fertilizer, waiver of VAT exemption and so on, PVFCCo completed and outperformed the corporate targets about business and profits. Specifically, the plant operated safely and stably, produced 891,000 tons of urea fertilizer (not to mention the quantity of converted NH3) and exceeded the production target by 5%. In 2015, the corporation earned 10,047 billion VND, accounting for 109% of the schedule with before-tax profits being 1,880 billion VND representing 146% of the schedule. PVFCCo made a lot of accomplishments in investment and development activities. For instance, PVFCCo completed the construction of UFC85/Formaldehyde production workshop which would start its operation in early 2016. PVFCCo signed the EPC contract to increase the production capacity of NH3 Workshop at Phu My Fertilizer Plant and started to build NPK Complex which was planned to finish in 2017. Based on the business results, the BoD and BoM suggested the shareholders that the dividend should be increased from 25% to 40%.
Regarding the business plan in 2016, PVFCCo planned to produce 800,000 tons of NPK fertilizer, sell 830,000 tons of NPK fertilizer, 282,000 tons of other fertilizers and 11,966 tons of chemicals, and the pre-tax profits to be earned would be 1,467 billion VND with the allocated dividend at 30%. PVFCCo’s leaders reported the shareholders on its business and production activities in the first quarter in 2016. In general, PVFCCo accomplished and outperformed the targets.
At the meeting, the shareholders elected BOD and Supervisory Board’s members. Mr. Louis T.Nguyen was appointed as BOD member and Mr. Huynh Kim Nhan was appointed as the Head of the Supervisory Board.
At the plenary discussion, the Presidium also satisfactorily answered the shareholders’ concerns like Phu My Fertilizer Plant maintenance, cash utilization, input and output prices, progress and effectiveness of investment projects.
Speaking at the meeting, Mr. Phan Dinh Duc, representative of the Parent company, also the biggest shareholder – PVN, affirmed and commended the important contributions of PVFCCo to the accomplishments of PVN when the oil and gas sector has been facing a lot of challenges. He also extended his thanks to the shareholders who always believed and supported PVFCCo. He undertook that PVN would ensure the sufficient supply of gas to Phu My Fertilizer Plant for production of NPK for the agricultural sector and to secure benefits of PVFCCo’s shaereholders.
On behalf of PVFCCo BOD, Mr. Le Cu Tan, BOD Chairman of PVFCCo, respectfully extended his thanks to the leaders, management agencies, PVN, especially the shareholders for their comments on the constructive activities of PVFCCo in 2015 and its 2016 business plan. With challenges looming ahead, he committed that PVFCCo would be determined, unanimous and creative to accomplish the tasks assigned by AGM successfully
At the meeting, the statements and resolutions were agreed by the majority of the shareholders. The Resolutions and the AGM Minutes would be finalized and released by PVFCCo to the shareholders within the statutory period.
Below are some pictures of the AGM:
