On 26th April 2008, PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo – Stock code: DPM) successfully held the 2018 Annual General Meeting of Shareholders at Phu My Fertilizer Plant.

Attendees included, from the parent company – Petrovietnam (PVN) – the largest shareholder –Mr. Dinh Van Son – PVN Board member, and from PVFCCo, members of the Board of Directors, Board of Management, Supervisory Board, key officers and especially the shareholders representing 73.12% of the voting shares and representatives from Deloitte Vietnam Co., Ltd – the auditor for PVFCCo”s financial statements.

During the meeting, PVFCCo”s leadership presented: Report on business performance in 2017 and business targets in 2018, update on results of quarter I/2018; Report on BOD activities in 2017; Report on Supervisory Board’s activities in 2017 and proposal for appointment of Auditor for 2018; 2017 Financial statements and Profit distribution Plan for 2017, Profit distribution plan for 2018; Report on Remuneration and bonus in 2017 of BOD, Supervisory Board; statements on voting for BOD, Supervisory Board; amendments and supplements of  PVFCCo’s Charter; internal regulations on corporate management; amendments of business lines.

Regarding to PVFCCo”s operation results in 2017, a year full of challenges to PVFCCo including strong increase of input gas price, harsh competition between local and imported fertilizers, oversupply; disqualification for VAT deduction; counterfeit and inferior quality fertilizers remaining rampant, to name but a few … PVFCCo has managed to accomplish production and profit targets thanks to the solidarity, efforts and creativity of its employees and the support from its shareholders.

Especially, PVFCCo operated, maintained its plants with maximum safety and stable yield of 799,000 tons of urea, exceeding the target by 4%; 2017 revenues reached VND 8,178 billion, hitting 106% of the target; profit before tax reached VND 853 billion – representing 101% of the target. In 2017, PVFCCo made vigorous effort to keep carrying out  the construction investment project to revamp the NH3 workshop of Phu My Fertilizer Plant and build the chemical technology NPK plant. In view of the above results, PVFCCo proposed to pay 2017 dividends at 20% including 10% advance previously paid and the balance 10% to be payable upon approval.

As for 2018 production and business plan, PVFCCo set the targets of producing 800,000 tons of urea, 170,000 tons of NPK and 13,500 tons of UFC85, selling 820,000 ton of urea, 150,000 tons of NPK and 225,000 tons of other fertilizers, trading in 116,000 tons of chemicals (NH3, UFC85, CO2 and others); profit before tax was set at VND 442 billion, dividend at 10%. Apart from this, PVFCCo would continue to promote its research and development of new products to implement its strategy of product diversification.

Also at the meeting, PVFCCo’s leadership briefed the shareholders on PVFCCo’s business activities in Quarter 1/2018, in general, PVFCCo reached and exceeded the target. In specific: from January 2018, the NH3 (revamped) workshop has supplied its commercial products to the market, yielding high efficiency at the time when the market prices went up by 30%; Phu My NPK chemical technology Plant also launched its first product in February, 2018 with high quality. Phu My Fertilizer output reached 220,000 tons, surpassing the quarterly target by 12%; NH3 production (commercial sales) was marked at 15,800 tons, surpassing the quarterly target by 15%; Sales of Phu My urea reached 203,000 tons, up by 2% over the quarterly target; Other sales of fertilizer business was 71,000 tons, also exceeding the target by 21%; revenues reached VND 2,100 billion, surpassing the quarterly target by 13%; Profit before tax was VND 219 billion, exceeding the target by 72%.

In the discussion, the leaders of PVN and the Presidium of the meeting also provided updated information, responding to the shareholders’ questions about cash flow, 2017 business result and 2018 plan, prices of input gas, divestment roadmap, cost management, depreciation…

On behalf of Vietnam Oil and Gas Group – Mr. Dinh Van Son thanked the attending shareholders for their opinions and support extended to PVFCCo. The Group and its representative at PVFCCo undertook to seriously welcome any reasonable initiatives to be applied in management. He informed that the PVN’s restructure plan for 2016-2020 currently under preparation included the plan of divestment from PVFCCo, with even the possibility of divestment below 51%. With respect to gas supply and input gas prices, PVN would strive to ensure the harmony between gas supply to PVFCCo and other consumers as well as facilitate PVFCCo in stabilization and development.

The shareholders also voted to ratify statements and reports with high and consistent consensus which reflected their understanding, sharing and support  to PVFCCo. The General Meeting of Shareholders also re-elected some members of the Board of Directors and Supervisory Board for a five-year term as follows:

Board of Directors:

• Mr. Le Cu Tan

• Ms. Nguyen Thi Hien

• Mr. Nguyen Hong Vinh

Supervisory Board:

• Mr. Le Vinh Van

• Mr. Luong Phuong

Resolutions and minutes of the meeting would be completed and announced to the shareholders within the time limit regulatedby the law.

On behalf of PVFCCo’s leaders and personnel, Mr. Le Cu Tan sincerely thanked Vietnam Oil and Gas Group and the shareholders for their contribution and comments on PVFCCo’s activities in 2017 and Production and Business target in 2018. He undertook that PVFCCo would determine and make more efforts, take advantage of opportunities, overcome difficulties to develop and complete the tasks assigned by the General Meeting of Shareholders despite any difficulties and challenges.

Below are some photos: