In the morning of April 20, the Annual General Shareholders" Meeting of PetroVietnam Fertilizer and Chemicals Corporation – a joint stock company (HOSE: DPM) was held to discuss the 2017 business plan in the context of having a lot ofadvantages but alsofacing many difficulties and, especially, prospectsofinvestment from its projects.

            Revenue for Q1 of 2017 reached over 2.000 billion with profit before tax of 275 billiondong.

            As judged by the BOMof DPM, in this year, economic and political situations in many countries in the world will continue affecting oil and gas prices, exchange rates, and prices of other materials, and, consequently, domestic product prices through import channel. Also, complex climate and environmental conditions will have impacts on domestic agricultural productions.

            PVFCCo built a business plan for 2017 basing on the anticipationthat oil price will be maintained at 50 $US/barrel in 2017. With such an oil price, average gas price is anticipated to be 4.47 $USD/MMBTU, increasingby16% compared to that in 2016.

            Accordingly, DPM plans to produce 770,000 tons of Phu My Urea and 13,000 tons of UFC85 in 2017. Consolidated total revenue is anticipated to be 7,743 billion dong, and profit before and after taxes to be 991 billion dong and 823 billion dong, respectively. The Corporation expects to pay dividend at rate of 20%.

            According to Mr. Doan Van Nhuom- CEO&President, in Q1 of 2017, total production of DPM was 226,000 tons and sales volume was 192,000 tons, a slightly decrease compared to that in the same period of preceding yeardueto more favorable weather and decreased fertilizer demand; nevertheless, DPM"s market share in Q1 was notreduced, while its UFC85 production reached 2,000 tons, exceeding quarterly planned target. The Corporation also reported total revenue of over 2,000 billion dong and a profit before tax of 275 billion dong.

            DPM"s business plan for 2017





2017 Plan


Production plan




- Phu My Urea




- UFC 85




Business plan




- Phu My Urea




- Other fertilizers




- Chemicals, including:




+ UFC 85




+ Others




Financial plan




- Charter capital

Billion dong



- Total revenue

Billion dong



- Profit before tax

Billion dong



- Profit after tax

Billion dong



- Dividend rate




- Contribution to state budget

Billion dong



- Total capital for  investment in construction, & procurement of equipment

Billion dong



            In this year, the Corporation will focus on completing thekey NH3-NPK project, researching to carry out H2O2 and PS petrochemical projects and complexes, researching new products and high technologies that offer benefits to consumers and economic efficiency.

            Specifically, in 2015-2020 period, DPM is preparing to make investment in processing sector, such as the hydrogen peroxide (H2O2) production project with design capacity of 30,000 tons/year and a total investment of about 21 million USD. This is a petrochemical product used in many phases of industrial production, especially in paper and dyeing industries. H2O2 plant will use hydrogen-rich gas as the main material andsomeutilities from Phu My Urea Plant.

            In addition, an investment will be made in Polystyrene (PS) production plant with design capacity of 300,000 tons/year: PS and PP plastics are petrochemical products mostly used in domestic consumption and supporting industries that are suffering from a significant shortage.

            Regarding the application of self-defense tax on imported fertilizers, the Board believed that if this policy was ratified, this would be an advantage to domestic producers by restricting a part of import from Indonesia, Malaysia, or Thailand.

            1,174 billion dong for payment of 2016 dividend at rate of 30%.

            Regarding business results in 2016, production of DPM reached 818 thousand tons, a slight increase of 2% compared to planned target;UFC85 production was 1.4 thousand tons. Consolidated revenue was 8,170 billion dong and profit after tax reached 1,165 billion dong, both exceeded planned targets. 2016 dividend was paid in cash at rate of 30%, which was equivalent to an amount of 1,174 billion dong.

            DPM was holding over 4,000 billion dong in cash as of December 31, 2016, and the Corporation is planning to make a disbursement of over 2,000 billion dong to invest in specific projects in this year.

            In last year, DPM also disbursed 1,031 billion dong to invest in the construction and procurement of equipment. Accordingly, an investment was made in NH3-NPK complex project to increase its NH3 capacity by 90,000 tons/year (an increase of 20% of existing capacity) and to construct a NPK plantusingchemical technologies with capacity of 250,000 tons/year. Total investment in this complex was nearly 5,000 billion dong. According to the Board of DPM, this project is highly feasible under current conditions that annual domestic market demand for NPK is about 4 million tons while high-quality products and hi-technologies only meet 5-10% of that demand. The project is under the schedule and expected to be completed in 2017. Expected revenues from these two projects for 2018 and 2019 are 2,800 and 3,000 billion dong, respectively.

            For UFC85/Formaldehyde manufacturing Unitwith design capacity of 15,000 tons/year, the project has been commissioned and delivered for commercial operation since May 2016.

            In addition, a commercial CO2 production Unitinvested by DPM has been also operated since November 2016. This project was jointly invested by DPM, PetroVietnam Southern Building Development and Management JSC, and F.A. JSC with total investment of 8 million USD. The plant has a design capacity of 47,500 tons/year.

            Regarding the divestmentplan of PetroVietnam Oil and Gas Group (PVN), it is planned to divestbelow 51% after 2017. Reportedly, PVNis holding 59,58% of capital in DPM.

            Regarding PVTex project, PVN said that the Government had established the Steering Committee for taking charge of 12 national uneffective projects, including PVTex project. Accordingly, the Steering Committee had submitted its proposals to the Government for consideration, including M&A, continued commissioning, or  lease for operation, etc.

                                                                               ( According to Thanh Nu- Vietstock- April 20th, 2017)

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Press Release: DPM
On April 17, 2019 at Phu My Fertilizer Plant, the 2019 Annual General Meeting of DPM"s General Meeting of Shareholders t
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