Documente Academic
Documente Profesional
Documente Cultură
1 www.dpm.vn
Contents
1 • Company’s profile
2 • Business Performance
3 • Development Strategy
5 • VN Fertilizer Market
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2
1 • Company’s profile
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3
Key notes
• A member of Petrovietnam, founded in
2004.
• Owner of the first gas-based urea plant in
Vietnam.
• Leading producer and trader of fertilizers
in Vietnam, supplying 40% of domestic
urea demand.
• Nationwide distribution network with
around 3,000 points of sales.
• Listed on HoSE in 2007, 380 million
shares.
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4
Phu My Fertilizer Plant
Petro Vietnam
6.95
Market Vector Vietnam ETF
5.95 61.37
4.89
Key shareholders (Norges
Bank, GIC, Wareham
Group…)
Others
6
Shareholder structure
Foreign
institutional Local individual
24.36% 10.36 %
Foreign individual
0.28% Local individual
Local institutional
Foreign individual
Local institutional
65%
Foreign institutional
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Business positioning
To become a top – ranking player in fertilizer and chemical industry in
Vietnam and SEA region
A major supplier of
chemical products: Supporting services:
Leader in fertilizer
industry: -UFC85 and Formaldehyde - Packaging plant (44 mil
- Urea producer: 40% - Petrochemical Plant packages/year)
market share (800k/year) - NH3 expansion - Operation & management
- NPK producer: premium - H202 services to other urea
segment (250k/year -2017) plants & technical services
- NH3 - NH4NO3 (Nitrat to farmers
- Trading other fertilizers: Amon)
NPK, SA, Potassium, DAP… - Real estate management
- Polystyrene, Methanol, (warehouses, head offices,
after 2020 exhibition centre…)
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Market advantages
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9
High-Quality Phu My Fertilizer Package
Phu My Urea
sales in 2014:
800,000
tons
Sales of other
fertilizers in
2014:
380,000
tons
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Strong distribution & client network
PVFCCo
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11
DPM market share by region
DPM ‘s urea market share by region
Northern Southeast
DPM’s urea market share in VN
25% 25%
75% 75%
40%
60%
Central - highland Southwest
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2 • Business Performance
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13
Challenging context in 2014
- Strong distribution network
- Stable supply and high quality (sales and after sales
services)
- Trusted brand
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Gas price in 2014 rose 3.35% yoy
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8
6.69
7 7.38 7.49 7.63 7.43 7.36 7.17 6.33
6 6.69 6.69
5.79
5
4 4.63
3
2
1
0
Jan Fer Mar Apr May June July Aug Sep Oct Nov Dec
The Formula (From Q2/2014 to Q4/2014) :
P = 46% x MFO + transportation tariff
• MFO: The monthly average FO price in Singapore market
• Transportation tariff = 0,63 USD/MMBTU
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Urea price on downtrend in 2014
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PM urea price movement
Price : VND/ kg
Plan 2014
Q1 Q2 Q2 Q3 Q4
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EST 2014 Performance
Target Unit 2014 Plan Est.2014 (% ) of 2014 plan
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New Petrochemical Plant
• The new petrochemical plant starts
production in May 2014, supplying
chemical products for oil and gas
exploration, for oil refinery plants;
• Location: Vung Tau province
• Capacity: 4.000 Tons (25,000
barrel)/per year;
• Technology partner: Baker Hughes;
• In 2014: Supplying than 15,000
barrels, earning a revenue of 200
billion VND.
www.dpm.vn 20
Launching Jumbo Packaging System
In 2014, the Jumbo packaging system in Phu My Fertilizer Plant starts
operation to pack big-size bags (500kg-1,000kg), for the first time allowing
PVFCCo to export 878 tons of Phu My urea in Jumbo bags to New Zealand and
Jordan.
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2015 CONTEXT: MORE CHANLENGING
- As oil price continues to drop -> gas price and
transportation cost will reduce
- Phu My Urea remain the No.1 fertilizer brand
(Neilson Research)
- New project to start operation (UFC 85)
- Low inflation rate
- Oil price forecast continue to drop ->
agriculture production drop -> fertilizer
demand decrease -> urea price estimated to
fall 5%-10% in 2015.
- New VAT law will increase costs
- Over supply situation (Ha Bac expansion to
500,000 tons/year)
- Operation risks
- Currency exchange risks
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GAS PRICE ROADMAP TO 2019
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2015 KEY TARGETS
Target Unit 2015 Plan
Urea Production tons 780,000
Urea sales tons 800,000
Other fertilisers tons 339,000
Export tons 50,000
Chemicals tons 6,510
Packages Million 55
Revenue Million USD 440.3
Profit (before tax) Million USD 44.2
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3 • Development strategy
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Key divers for future growth
Product diversification
Chemical products to to push sales:
contribute 40-50% of Trading expansion: To
New plant (NPK Plant –
total revenue: reach export volume of
250K/Y)
200K tons after 2017
NH3, UFC85/Formalin, Target sales growth of (25% of total sales)
H2O2, Nitrat Amon… 5%-10% to reach 1.4
million tons in 2017
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On going projects
Total
Project investment Current Status
(mil. USD)
NH3 plant revamp Plan
- Capacity 90,000 tons/year ; 191 Project investment study has been approved by PVN and
- Time of completion: 28 months; Disbursement Ministry of Industry and Trade.
- Input material: natural gas (NH3-NPK The ECP contract to be signed in Q2/15, complete and put into
- Market : domestic combined): operation in 2017
2014: 1.25% IRR: 15.2% (NH3-NPK combined)
2015: 30% ROE: 26.8% (NH3-NPK combined)
2016:55%
2017:13.75%
NPK Plant- based on chemical processing
- Capacity: 250,000 tons/year 53 Project investment study has been approved by PVN and
- Input materials: H3PO4 (Phosphoric Ministry of Industry and Trade.
acid) + NH3 + DAP The ECP contract to be signed in Q2/15, complete and put into
- Market: Domestic operation in 2018
UFC85 /Formaldehyde project (aim to increase the urea quality : anti-caking, hardening the urea granule)
- Capacity: 15,000 tons UFC85 or 22 EPC contract signed in March 2014 , completion in 19 months
25,000 tons Formaldehyde/year Disbursement: ROE: 16%
- Input materials: Methanol, urea 2014:30% IRR: 14.6%
- Market : Domestic 2015:70% Gross margin: ~30%
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Long run projects
Project Status
Petrochemical Complex
- Products: Series of derivatives of Methanol such as Olefins, SM, PS Pre-Feasibility study phase
- TIC: 1.9 ~ 3.1 billion USD Expected commercial operation: 2021
- Input material: Newly found Blue Whale gas
- International experienced partners (both in technology &
marketing) is welcomed.
-Location: Central of Vietnam
-Market orientation: Domestic and export
Polystyrene
- Capacity : 450,000 tons NH3 & 900 Continuing with gas source review and study
200,000 tons NH4NO3. as to complete overall investment study
- Input material: natural gas (PVFCCo
will joint venture with other partners)
-Location: Central of Vietnam
-Market orientation: Domestic& export
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Execution Progress
Disbursement in 2014: 360 billion VND, or 88% of 2014 plan
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Trading expansion
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Export targets
• Thailand, Myanmar, Cambodia,
Target markets Philippines, Malaysia, Japan, New
Zealand…
Target export volume • Sales: 29K tons in 2014 -> 50K tons in
and sales 2015
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4 • CSR & Brand Equity
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Leading in CSR activities
Giving gift to dioxin victims Granting Scholarship Building houses for poor people
Awards for outstanding young farmers Supporting the invalids Giving “Tet gift” to poor people
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Brand equity
PVFCCo wins Top 10 of Annual For the second straight time, PVFCCo was
Report Award 2014 found in Forbes Vietnam’s 50 best Vietnamese
listed companies.
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Brand equity
Phu My Urea received quality certificate PVFCCo awarded “The best Equitized
in Japan Company”
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5 • Vietnam Fertilizer Market
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38
Agriculture and fertilizers
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Seasonal demand for urea
Unit: Thousand tons
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Regional urea supply and demand
Total demand : 2.2 million tons Total supply : 2.66 million tons
Source: PVFCCo
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Vietnam urea production output
UREA PLANTS CAPACITY 2003 - 2015 (e.)
3,000
2,500
Ninh (Vinachem) 560
www.dpm.vn 560
2,000 Bình
'000 metric ton
504
Cà Mau (Petrovietnam) 392
1,500 800
Phú Mỹ (Petrovietnam) 720 800
560
1,000 Ha Bac (Vinachem)
800
765 749 756 807 801 800 800 800
500 646 617
209 500
148 147 166 175 158 187 190 147 194 190 190 190
-
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: MARD
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Thank you !
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