Soaring prices send fertilizer firms' profits skyrocketing

By Tat Dat July 28, 2022 | 05:53 pm PT

Fertilizer production at Petrovietnam Ca Mau Fertilizer (PVCFC). Photo courtesy of the company

Vietnamese fertilizer firms reported three- and four-digit profit growth in the first half as global prices climbed on surging demand amid post-Covid recovery and the Russia-Ukraine war.

The biggest producer, state-owned Vinachem, saw profits go up by 31 times to VND4.098 trillion (US$175.3 million) and revenues jumping 26 percent to VND32.83 trillion.

Its subsidiaries like the Vietnam Apatite Company (410 percent), Southern Fertilizer JSC (297 percent) and DAP-Vinachem (233 percent) too reported triple-digit rises in profits.

Leading private player Duc Giang Chemicals said profits were up 5.7 times to VND2.55 trillion, four times the full-year target.

Growth was driven by higher demand from both the domestic and international markets while prices soared.

Exports topped 998,000 tons and were worth $647 million, up 43 percent and 2.8 times.

In the whole of last year exports had been worth $559 million.

But prices would fall next year as China raises its output and prices in North America have already been falling, brokerage VnDirect forecast.