The Maintenance And Improvement Of The Management System For Health, Safety, And Environment (Hse).
Developing to become a leading producer and trader of fertilizers and chemicals for agriculture and oil and gas industry in Vietnam and Southeast Asia.
To provide customers with a sufficient and reliable source of high-quality fertilizers and chemicals at competitive prices, thereby achieving good business performance, contributing to the long-term development of the agriculture sector in Vietnam.
PVFCCo has completed another successful year and together we have overcome many unexpected challenges and difficulties. We continue to maintain the leading position in the fertilizer industry through innovation in structure and approach and are ready to continue our journey with even stronger determination and aspiration.
Dear valued Shareholders, Business partners and Employees,
2019 was a pivotal year for the Corporation, after its proud 15-year development journey. PVFCCo has continued to expand its production activities beyond Phu My Urea, branching into NPK complex fertilizers and other auxiliary chemical products. Unpredictable market fluctuations and a disruption at the Phu My Urea Plant has had a direct effect on the production and business activities of the Corporation. 2019 can be characterized as having presented many challenging situations for PVFCCo; however, it will also prove to be a memorable year for all of us to reflect upon, and to take pride in how we have overcome our challenges, and achieved significant results in production and business activities, as we had committed to our shareholders and investors.
PVFCCo began 2019 with strength and belief from the positive results of 2018, but also awareness of the risks and challenges that have affected the development of the Corporation. These predictions partly helped PVFCCo to take the initiative and flexibly adapt to handling and dealing with the challenges that arose in the first months of 2019, when the Phu My Fertilizer Plant (for the first time in its operation) had to halt operations for almost 3 months. The entire system of PVFCCo made every effort to complete the overall maintenance 1 week ahead of schedule, bringing the Plant’s operation back to steady condition in early May, but this “arising incident” deeply affected the overall operation of the Corporation in 2019.
With sharp awareness that connectivity and transparency were key factors during such a difficult time, the Management acknowledged and responded to the situation with timely adjustments to the goals to meet the expectations of the market, our partners and employees in the context of the many difficulties and changes we faced. We received encouragement from the market when our shareholders and investors determined that “the worst is over” and as the year 2019 went by, we realized that such experiences are truly golden opportunities to learn and adapt to changes and become flexible. The Corporation appreciates every effort made by our shareholders, partners, and employees in difficult times, no matter how small, and we are proud of what has been done to accumulate valuable achievements in the past year.
The Corporation has maintained its position as one of the leading enterprises in the field of oil and gas processing. The Phu My Fertilizer Plant continued to operate stably and effectively, reaching a total output of 708 thousand tons, exceeding by 6% of the plan for 2019. The sales volume of fertilizers and chemicals reached approximately 1.1 million tons, achieving consolidated revenue of VND 7,831 billion and profit before tax of VND 467 billion. Although these results are lower than the originally predicted targets, 2019 was still a successful year for PVFCCo in the context of overcoming the difficulties arising in production while dealing with external disadvantages such as: rapid increase in gas transportation cost (40% higher than 2018), agriculture and fertilizer markets suffering from adverse effects of climate change, resulting in lower average selling price after the recovery period in Quarter 4 of 2018.
In 2019, PVFCCo has strongly implemented restructuring of the management system in order to acquire a newly streamlined and more effective management structure on the basis of promoting a solid foundation of well-trained staff, modern management systems, efficient distribution systems, and retaining our position as the leading brand in the fertilizer market. Apart from that, the Management has paid special attention to asset management activities, SG&A cost cutting to further improve the overall operating margin.
With its efforts and achievements in business operation throughout 2019, PVFCCo continued to be recognized and voted amongst the most transparent and effective largecap listed companies: One of the 150 largest enterprises of the country; one of the 50 best listed companies in 2019; Top 40 leading brands in Vietnam; Top 5 best corporate governance companies; Top 3 listed companies with the best IR practices as voted by investors, etc.
As we enter this new year, PVFCCo has clearly identified the tasks and goals that need to be achieved as well as the risks and challenges that continue to impact the Corporation on its development path in the coming period. The major targets for 2020 are: Continue to effectively operate the existing fertilizer and chemical plants (especially the NPK Complex Fertilizer Plant); make use of the support of competent authorities to achieve short-term and long-term commitments to stabilize input gas price; enhance sales and market development activities to diversify consumption sources of fertilizer and chemical products; promote the research and development of new products in a creative, innovative and effective manner; Last but not least, continue to implement professional and effective governance - management structure, improving management capability and information transparency to adapt to the competitive environment and the context of changes in the market.
2020 marks the beginning of a new decade, and is a milestone in the journey of PVFCCo’s development. The development strategies and targets to be reviewed and updated in the coming period will soon be planned, the new governance system will complete its thorough re-organization and re-definition, shaping the Corporation future development journey through the challenges and opportunities ahead.
More than ever, the Management relies upon the trust of shareholders and all employees of the Corporation to express with unity and strong design for providing excellent customer service. Our best days are still ahead of us.
We would like to express our sincere thanks for the concern, trust and partnerships of valued shareholders, investors, customers, and employees.
On behalf of the Management,
Chairman of the Board of Directors
NGUYEN TIEN VINH
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3,914 Billion VND
PetroVietnam Fertilizer and Chemicals Corporation
Business Registration Certificate:
43 Mac Dinh Chi, Da Kao Ward, District 1, Ho Chi Minh City
(+84.28) 3825 6258
(+84.28) 3825 6269
Groundbreaking ceremony for the construction of Phu My Fertilizer Plant was held.
PetroVietnam Fertilizer and Chemicals Company (PVFCCo) was founded.
PVFCCo took over full responsibilities of Phu My Fertilizer Plant, formally launched the Phu My Urea brand.
Phu My Fertilizer Plant was put into operation
PVFCCo was transformed into a Joint Stock Company.
DPM was listed and traded on HOSE.
PVFCCo was turned into PetroVietnam Fertilizer and Chemicals Corporation.
A Carbon Dioxide Recovery (CDR) System was inaugurated, increasing the capacity of Phu My Fertilizer Plant to 800,000 tons per year.
PVFCCo Tower’s Head office was inaugurated.
PVFCCo celebrated 10 years of its founding and received the First - Class Labor Order.
Phu My Urea of PVFCCo was recognized as the National Brand 2014 by the Government of Vietnam.
Started the construction of NH3 Revamp Project and Phu My NPK Plant.
NH3 Revamp - Phu My NPK Complex was put into operation.
To maintain the position of PVFCCo as the No.1 fertilizer producer and trading company in the country; develop chemical production, focusing on petrochemicals, so that by 2020, the revenue from the non-urea fields accounts for 50% of total revenue.
University, College and Postgraduate: 1,026 employees
Vocational: 118 employees
Technical and Others: 407 employees
Leadership and Management: 194 employees
Technical and Professional: 747 employees
Supporting staff: 57 employees
Workers: 553 employees
DPM: Phu My Urea
NPK: Phu My NPK (Plant)
Orther: Other Fertilizers
With a sales volume of nearly 1 million tons of fertilizer (691,000 tons of Phu My Urea; nearly 77,000 tons of Phu My NPK; 205,000 tons of other fertilizer) and 120,000 tons of chemical.
Profit before tax reached VND 467 billion - achieving 228% of the plan in 2019. Revenue did not meet the plan but profit exceeded the plan in 2019, mainly due to sharp decline in gas prices during Quarter 4.
Total disbursement for investment and procurement projects is VND 133 billion. The NH3 Revamp - Phu My NPK Complex: The projects of increasing the capacity of the NH3 production workshop at the Phu My Fertilizer Plant by 90,000 tons/years (20% higher than the existing capacity) and constructing the plant which utilized the NH3 source made by chemical technology, to produce 250,000 tons of NPK fertilizer per year has been put into operation. In 2019, the Complex project continued to contribute about VND 1,045 billion in revenue, equivalent to more than 13% of total revenue of the Corporation.
Research studies continue to focus on applied research. In 2019, PVFCCo’s test product of Kebo 6SiO2 + TE Urea received positive reviews from customers, and PVFCCo is currently preparing the next steps required to eventually introduce commercial products to the market.
The Projects of Remuneration Policy Improvement and KPI have provided motivation for employees to promote creativity and improvement in their work and help the Corporation to retain the high-qualified staff.
PVFCCo was ranked among Top 50 best listed companies in Vietnam (voted by Forbes Vietnam).
Phu My Fertilizer brand is among the Top 40 most valuable trademarks in Vietnam (voted by Forbes).
PVFCCo ranked among Top 5 large-cap listed companies and was awarded with Best corporate governance companies award (jointly organized by Ho Chi Minh City Stock Exchange & Hanoi Stock Exchange).
DPM ranked among Top 3 Midcap listed companies with the best IR practices (organized by vietstock.vn, an online website on economic and financial news).
PVFCCo received the “Top 30 listed large-cap companies with Best Annual Reports” award.
Phu My Fertilizer won the title of High Quality Vietnamese Goods for the 16th consecutive time.
PVFCCo is in the Top 500 largest enterprises in Vietnam (VNR500) for the 12th consecutive time.
“Most Popular Agricultural Product” for the 5th consecutive time voted by the Central Committee of Vietnam Farmers’ Union.
In 2019, the Board of Supervisors of PVFCCo has well performed the role of supervision on the financial and business activities, focusing on the following main areas:
Effective economic development.
Promoting social harmony, raising living standards and residential strata’s awareness, especially focusing on agriculture and farmers.
Improving the environment to guarantee long-term development for today’s generation and generations to come.
The Maintenance And Improvement Of The Management System For Health, Safety, And Environment (Hse).
Safety - security, fire control, emergency response.
Caring for the health of employees and preventing occupational diseases.
Environmental protection and waste control.
Building a health, safety and environmental (hse) culture.
Efficient use of water resources and energy savings.
Throughout the unfavorable situations of production and business activities, the Corporation demonstrated its strong sense of responsibility in sharing and directly taking care of the farmers and customers in disadvantaged areas, and mobilized its resources including employees and distribution systems to constantly implement social welfare programs mainly focusing on educational support, health care, and thanksgiving.
A typical and meaningful program engaged by the entire system was “Phu My Run”, an event that was organized to raise money and present Tet gifts to the poor. Accordingly, all employees and members of the distribution network participate in the running program organized by the Corporation’s Labor Union for physical health training and strengthening solidarity. Every 1 km completed will be converted to money for Tet gifts to the poor.