(Source: Vietnam investment Review; 21/4/2019 22:11)
PetroVietnam Fertilizer and Chemicals Corporation (DPM code) has recently announced its financial results for the first quarter of 2019 with a revenue of VND 1,326.3 billion and profit after tax of VND 40.7 billion.
Due to the maintenance period of the factory, in the first quarter of this year, DPM"s management and sales expenses had suffered from a sharp reduction. Accordingly, in the parent company, the management expenses decreased by 31%, the sales expenses decreased by nearly 36%, the reduction was 31.4% lower than the revenue reduction.
The sharp reduction in management and sales expenses is also due to the fact that DPM conducted active expense reduction throughout the system. According to the consolidated report, while the revenue reached VND 1,596 billion which is 23.4% lower than that of the same period, the management expenses decreased by 26.6%, the sales expenses decreased by 31%.
Interestingly, the reduction of consolidated revenue is lower than that of the parent company, corresponding to a reduction of 23.4% compared to 31.4%.
The profit of parent company is 24%, the consolidated profit is VND 53.57 billion, reaching 30% compared to the same period of 2018. This shows that the subsidiaries that DPM calls as regional companies under DPM"s distribution system have contributed positive revenue and profit to increase consolidated revenue and profit while the parent company is maintaining Phu My Fertilizer plant.
The fact that Phu My Fertilizer Plant has been maintained in the first 3 months of 2019, the period of a low season, has also reduced the impact of maintenance activities on revenue and profit in the year.
In the first quarter, due to general difficulties, the fertilizer companies have gained business results much lower than that of the same period in 2018. It is estimated that Binh Dien Fertilizer Company (BFC) reached the profit of VND 7 billion in the first quarter, decreased 86% compared to the same period. Ca Mau Urea Plant (DCM) reached the profit before tax of VND 116 billion in the first quarter of 2019, decreased 57% compared to the same period.