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PVFCCo adjusts its business plan 2018 with much higher profit

12/12/2018

PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo – stock code as DPM, Phu My fertilizer producer and supplier) announced the adjustment of its business plan 2018 with higher financial indexes compared to projected statistics announced in early 2018. The revenue is predicted to increase by 5.5 %, from VND 8,577 billion to VND 9,050 billion, and the profit after taxes to rise by 67%, from VND 371 billion to VND 620 billion.

In addition to its financial targets, in order to be flexible with the circumstance of the production and the year-end crop of 2018, PVFCCo also adjusted a number of production and trading targets for its products, the detailed adjustments are as follows: The output of Phu My Urea would be 800,000 tons; the production and trading volumes of Phu My NPK products produced by PVFCCo chemical technology plant would be 50,000 tons and 35,000 tons; UFC85 production output would be 13,000 tons.

Financial targets of PVFCCo witnesses the significant increase mainly due to the efficient operation of the Plant; the increase in the sales volume of products with high price and marginal profit; the activeness, flexible distribution in selling products in favourable periods; the minimization of all expenditures; and the undeducted amount of gross fixed asset depreciation of NH3-NPK project in the period.

In terms of PVFCCo total production output (including manufactured and imported products) in 2018, the volume is estimated to be 1,266,100 tons of fertilizers and chemicals, of which 800,000 tons is Phu My Urea; 141,000 tons is Phu My NPK (including production and import volume); and 116,100 tons is chemicals. Especially, in comparison with that of 2017, the sales of PVFCCo Phu My NPK of all types raised by over 40%; the total amount of Phu My NPK produced by PVFCCo new plant has been sold extremely well thanks to the thorough market preparation in the past years, as well as in 2018, PVFCCo has effectively exploited "emerging markets" for the Phu My NPK products.

Mr. Duong Tri Hoi – Vice President of PVFCCo stated: "These positive target adjustments is the great effort of the PVFCCo management and employees in the challenging context, and it also presents the transparency of PVFCCo to shareholders, that is, basing on the production and trading situations PVFCCo will make appropriate adjustments in accordance with actual situations."