Vinachem posts highest 9-month profit ever

By Tat Dat   October 14, 2022 | 03:23 pm PT
Vinachem posts highest 9-month profit ever
One of Vinachem's chemical plants in Bac Giang Province. Photo by VnExpress/Anh Tu
The Vietnam National Chemical Group (Vinachem) has earned its biggest-ever profit of the first nine months of a year, nearly trebling the annual target at VND5.4 trillion ($229.8 million).

Vinachem said it earned gross revenues of nearly VND16 trillion in the third quarter of this year, up 28% year-on-year. Gross profit for the same period topped VND1.18 trillion. It had targeted profits of VND1.81 trillion for 2022, down 15% against 2021, mainly over international developments including impacts of the Russia-Ukraine conflicts.

Despite the record profit, the group said it expected prices of raw materials to increase sharply in the coming time and that its production and business will also be affected by high freight rates.

However, the prices of chemicals and fertilizers, the group’s flagship products, will also remain high. In the Vietnamese market, a 50-kg bag of urea currently sells for VND780,000-840,000 (US$32.32-34.80), and other common kinds of fertilizers are priced over VND1 million per bag.

According to analysts with the Viet Capital Securities Joint Stock Company, urea prices will remain high in the 2022-2023 period, mainly due to high prices of coal and gas. Their peers at the BIDV Securities Company expect that prices of almost all kinds of chemicals, including fertilizers, will not decrease in the near future, especially in the last quarter of this year.

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