It is estimated that there is 230,49 thousand tons of urea fertilizer produced, which makes up for 112% of the requirement in the first quarter and 29% of that in 2020. With regard to consumption, 177,44 thousand tons is consumed. This accounts for 109% of the first quarter’s demand and 25% of the year’s.
In consequence, the company’s profit has reached nearly 1306 billion VND, which is 98% of the first quarter’s estimation and 22% of the entire year’s. Earnings before interest and taxes stands at 64,69 VND, accounting for 118% of the demand in 2020.
According to PVCFC, it is productivity that culminates in such excess in interest, along with cost-effectiveness and a sharp fall in gas supplying prices. 98% of the plan for the first quarter is accomplished in that average price is lower than initial price.
According to PVCFC, NPK project is introduced on a trial basis and under preparation for delegation. However, this suffers an ineluctable implication of the corona virus. As a result, being understaffed is one of the insuperable problems posed to the corporation. Moreover, without the government’s permission for admission, the price estimates from the original owner of the project, Espindesa, as well as the foreign facilitators resort to changing their timeline. Meanwhile, PVCFC is making their attempt to prepare for the project in terms of operation, ingredients, chemicals, additional aids and many other tasks so that it will become easier to handle when delegated from merchants. In addition, the firm has been making preparations for marketplace development, distribution and advertisement campaign towards targeted groups of consumers as soon as Ca Mau’s NPK makes its debut.
In the second quarter of 2020, the fertilizer industry is going to proceed with their confrontation with the unpredictability of COVID-19 which has made the world’s economy turbulent in recent months and resulted in a remarkable deterioration in production and consumption. A surplus of fertilizer contributes to intense competitions between the suppliers both interior and exterior of Vietnam. With the increase of soil salinity, farmers are having a hard time as there appears to be a deficit of land for plantation. Consequently, their demand for fertilizer submerges.
To face up to the challenge, PVCFC is throwing every effort into triumphing over a fight with the novel virus. A factory must be operated to its full potential. Human resource must be generated to guarantee the successful trial and commercialization of NPK. Maintenance in 2020 should be compatible with listed requirements. There must be continual selling for targeted customers and marketplaces which are unaffected by the soil salinity.
In particular, to address the shortage of those who are in need of the products, a feverish search for more markets in anticipation of auspiciousness is a must. There is calculated to be over 30000 tons of fertilizer exported in the first quarter of 2020, mainly in South East Asia.
For the time being, one of the tasks that PVCFC has managed to do is improving management, economizing, applying technological advances to the course of production and making rational distribution. For the past quarter, the cost has dived by 36,11 billion VND, adding glamour to the ultimate result. This helps PVCFC retain its position as a technophile and one of the most economical corporation in PVN. Being a trailblazer in the sphere of technology, the company is becoming more and more outstanding with the advent of home-working as the COVID-19 is taking its toll.
In the end, there is always light at the end of a tunnel as the future appears promising. In spite of its adversity, the outbreak has raised the need for sustenance which proves to be a game-changing factor. There is every likelihood that a resurgence of ride exportation will occur in the other half of 2020, leading to an upsurge in the demand for fertilizer. With all the above-mentioned solutions to recuperate the situation, it is undoubted that the prospects of success are in the foreseeable future. This will give a fresh impetus to PVCFC to attain all of its resolutions in 2020.
PVCFC