Ca Mau Fertiliser's profit before tax expected to rise 8 per cent in the first half of 2021

Tuesday, Jul 13, 2021 09:29

A Ca Mau Fertiliser employee loading goods on a boat. — Photo

Petro Viet Nam Ca Mau Fertiliser JSC (PVCFC, DCM)'s profit before tax is estimated at VND411 billion (US$17.9 million) on higher prices and cost-cutting plans.

During a recent online meeting with investors, Nguyen Van Thanh, General Director of PVCFC, said that the first half of this year was considered unprecedented in the past 10 years as prices of fertiliser products and urea soared.

In the first half of 2021, its plant’s operations were interrupted due to impacts on gas supplies. However, the problem was soon solved, ensuring production output as planned.

In the second quarter, the plant's operating capacity was over 110 per cent, which was enough to compensate for the shortfall in the first quarter and ensure supply for the domestic market.

As of June 30, the company’s total production volume reached 456,000 tonnes, which met 102 per cent of its plan. Consumption volume reached 421.000 tonnes, helping PVCFC achieve an estimated revenue at over VND4.3 trillion ($188.9 million), equivalent to 108 per cent of the plan.

With effective cost-saving activities, its profit before tax is expected to rise around 8 per cent year-on-year to VND411 billion.

In the near future, the company’s leader set out broad plans to change the business model and expand the market. Accordingly, it follows the trend of using high-quality NPK combined with micro-organic fertilisers, as well as provide high-tech agricultural solutions.

By 2025, PVFCF targets the brand awareness level of the company in the Mekong Delta, Southeast, Central Highlands and Cambodia to reach at least 65 per cent.

The fertiliser producer will also diversify product groups of urea, NPK, micro-biological and organic fertilisers, as well as sell other fertilisers and provide agricultural services, maintenance and operation services.

On the stock market, DCM shares, which are traded on the Ho Chi Minh Stock Exchange (HoSE), closed Monday's trade at VND16,000 per share, down 6.16 per cent. — VNS


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