Fertilizer exporters soon exceed profit targets

DNHN - The fact that businesses make good use of market opportunities and promote exports when prices are high have helped many companies' 6-month business results exceed the plan.

According to statistics of the General Department of Customs, in the first 6 months of the year, Vietnam's fertilizer exports reached nearly 1 million tons, equivalent to USD 647 million, up 43% in volume and 2.8 times in turnover compared to the previous year. the same period in 2021.

Thus, after only the first 6 months of the year, fertilizer export turnover has surpassed the export result for the whole year of 2021 with 559 million USD.

In the first 6 months of this year, the export price of fertilizer increased 1.8 times over the same period in 2021, to an average of 646 USD/ton. Particularly in June, the export price of fertilizer increased by 2.5% compared to 5, to 679 USD/ton.

PetroVietnam Fertilizer and Chemicals Corporation - JSC (Phu My Fertilizer, Code: DPM) recorded net revenue in the second quarter of VND 5,013 billion, up 71% over the same period in 2021. Profit after tax reached 1,291 billion dongs, up 86%.

Accumulated in the first 6 months, the Corporation's net revenue reached VND 10,842 billion, and profit after tax reached VND 3,417 billion, up 122% in revenue and nearly 4 times in profit.

In 2022, the enterprise sets a target of a total revenue of 17,239 billion VND and profit after tax of 3,473 billion VND. Ending the first two quarters of the year, the corporation has completed 63% of the revenue plan and 98% of the year profit target.

Similar to Phu My fertilizer, Ca Mau Petroleum Fertilizer JSC (Ca Mau Fertilizer, Code: DCM) also recorded positive business results.

Accordingly, net revenue in the second quarter of Ca Mau Fertilizer increased by 73% to VND4,084 billion compared to the second quarter of 2021, mainly thanks to sales of urea. Profit after tax reached 1,039 billion VND, 3.5 times higher.

In the first 6 months of the year, Ca Mau Fertilizer's net revenue reached VND 8,159 billion, up 93% over the same period in 2021, and profit after tax reached VND 2,556 billion, 5.7 times higher than the same period last year.

In 2022, Ca Mau Fertilizer raise the target of consolidated revenue to VND 9,049 billion, a consolidated profit after tax of VND 513 billion. With this result, the company has completed 90% of the revenue plan and exceeded 4 times the target of profit after tax for the year.

A representative of Ca Mau Fertilizer said that in the first half of the year, total urea consumption was estimated at 432,380 tons, reaching 56% of the year target and up 3% over the same period last year.

In which, export urea accounts for nearly 50% with 200,000 tons, traditional export markets include Cambodia, India and Bangladesh. The company mainly exports during times of low domestic demand, slow domestic consumption and high inventories.

The fertilizer industry will face more difficulties in the last 6 months of the year when the global inflation rate increases, and commodity prices escalate, affecting the purchasing power of households.

On the other hand, the war situation between Russia and Ukraine, along with economic sanctions and embargoes, will also continue to push up oil and energy prices, increasing the cost of input materials for manufacturing industries.

In addition, the unusual changes in the weather, and low agricultural product prices have not been much improved, while the high cost of agricultural production poses the risk of farmers reducing farming or switching to high-priced fertilizers. cheap low quality.

Another name that is quite prominent in the statistics of the fertilizer industry is Ha Bac Nitrogenous Fertilizer and Chemical JSC (Ha Bac Fertilizer, Code DHB). This is a mid-sized enterprise but made good use of opportunities in the first 6 months of the year, turning losses into profits.

Accordingly, net revenue in the second quarter of Ha Bac Fertilizer reached VND 1,601 billion, up 84% over the same period in 2021; profit after tax reached 478 billion dongs in the second quarter of 2021, a loss of 160 billion dongs.

The company's representative said that market movements were favourable, domestic and international urea and NH3 prices both increased sharply over the same period, and efficient production and business activities helped the company convert losses into profits.

In the 6 months, Ha Bac Fertilizer recorded net revenue of 3,547 billion dongs, up 92% over the same period in 2021. Profit after tax was about 1,346 billion dongs, a sharp change compared to the loss of 409 billion dongs in the first half of the year 2021.

In 2022, the business targets to reach VND 4,498 billion in revenue and VND 8.8 billion in pre-tax profit. With 478 billion dongs of pre-tax profit, the business achieved 79% of the revenue target and 54 times the annual profit target.

In addition to the names mentioned above, other enterprises such as DAP Vinachem fertilizer, and Southern fertilizer all recorded strong business results in the first 6 months of the year.

Particularly, Binh Dien fertilizer and Lam Thao Supe are two companies in the group that recorded a slight decrease in revenue and profit in the second quarter, but the overall results in the first half of the year were still positive.

Lâm Nghi (t/h)