Fertilizer makers posts surging profit as prices climb

Petrovietnam Fertilizer & Chemicals Corp saw profit tripling year-on-year to VND4.46 trillion ($179.37 million), exceeding its target for the year by 30%.

DCM of PetroVietnam Ca Mau Fertilizer saw profit quadrupling to VND3.27 trillion, or 6.4 times its goal for the year.

Vinachem’s profit of VND5.4 trillion triples its target for the year, while that of Duc Giang Chemicals Group, VND4.92 trillion, exceeded the target by 40%.

Smaller companies also enjoyed the profit jump. Southern Fertilizer saw profit tripling to nearly VND52 billion, while that of Van Dien Fertilizer went up over 50% to VND32 billion.

Fertilizer retail prices have been hovering around a record high since the beginning of the year.

Urea fertilizer price surged 33% year-on-year to VND13.8 million per ton in the third quarter.

NPK fertilizer price rose 20% to VND14 million in the same period.

Some other fertilizers saw prices doubling.

High demand from other countries help boost the market.

Fertilizer exports rose 166% year-on-year to $886 million in the first nine months, exceeding last year’s total of $559 million, according to Vietnam Customs.

Global urea fertilizer prices are set to rise in the remaining months due to the European energy crisis, while domestic prices are expected to go up as southern farmers prepare for the largest rice season in the year which begins November-December.