Ca Mau Fertilizer is about to complete its export target, planning to consume record high levels of Urea and NPK

Ca Mau Fertilizer contributes 18% of the country's fertilizer exports.

Ca Mau Petroleum Fertilizer Joint Stock Company (HoSE: DCM) said that in August 2024, the company produced 45,610 tons of urea, down 47% compared to the previous month. The company's urea consumption in the month also decreased by 24%, to 31,940 tons, of which 16,160 tons were exported, down 16% compared to the previous month.

Regarding NPK, in August 2024, Ca Mau Fertilizer produced 9,690 tons, down 24% compared to July 2024. The company's NPK consumption output in the month reached 2,370 tons, down 17%.

In the first 8 months of 2024, Ca Mau Fertilizer produced 634,560 tons of Urea, completing 71% of the yearly plan. Urea consumption reached 527,560 tons, completing 70% of the 2024 plan.

Of which, DCM's urea fertilizer export reached 209,690 tons, completing 93% of the plan for 2024. With this amount of exported fertilizer, Ca Mau Fertilizer contributed 17.9% of Vietnam's total fertilizer export volume in the first 8 months of 2024.

Regarding NPK, NPK production and consumption in the first 8 months of 2024 reached 119,540 tons and 80,180 tons, respectively, completing 66% and 44% of the yearly plan.

In September 2024, Ca Mau Fertilizer plans to produce 67,410 tons of Urea and consume 80,000 tons of Urea, up 47% and 150% respectively compared to August 2024. Regarding Urea exports, the company cautiously set a target of 10,000 tons, down 38% compared to the previous month.

For the NPK segment, Ca Mau Fertilizer also targets to produce 11,050 tons and consume 25,000 tons in September 2024, an increase of 14% in production volume and 10 times in consumption volume compared to August 2024.

In the first 8 months of 2024, Ca Mau Fertilizer produced 634,560 tons of Urea, completing 71% of the yearly plan. Urea consumption reached 527,560 tons, completing 70% of the 2024 plan.

In the first 6 months of the year, Ca Mau Fertilizer reported a profit after tax of VND919.4 billion, up 70% over the same period and exceeding the annual plan by 16%. Specifically: the company's net revenue in the first 6 months of the year reached VND6,607.4 billion, up 10% over the same period last year. Gross profit skyrocketed 40% to VND1,319 billion, gross profit margin increased by 4% to 20%.

As a result, Ca Mau Fertilizer reported pre-tax profit of VND980.8 billion in the first 6 months of the year and after-tax profit of VND919.4 billion, up 61% and 70% respectively over the same period in 2023. In 2024, Ca Mau Fertilizer set a consolidated after-tax profit target of VND794.8 billion. Thus, in the first 6 months of the year, Ca Mau Fertilizer exceeded the annual plan by 16%.

Ca Mau Fertilizer contributes 18% of the country's fertilizer exports.

Fertilizer prices will increase again

According to a recent assessment by SSI Research, global fertilizer demand in the 2024-2025 period will gradually recover after being severely affected by the El Nino phenomenon in 2023; thereby, promoting fertilizer prices to increase again.

According to statistics from the General Department of Customs, in the first 8 months of 2024, the country exported nearly 1.17 million tons of various fertilizers, equivalent to over 478.69 million USD, with an average price of 410.8 USD/ton, up 5.9% in volume, up 6.4% in turnover and up 0.5% in price compared to the same period in 2023.

In August 2024 alone, 131,735 tons of various fertilizers were exported, reaching 58.51 million USD, at a price of 444.2 USD/ton, down 0.4% in volume, down 0.5% in turnover and down 0.14% in price compared to July 2024. Compared to August 2023, it also decreased by 16.7% in volume, down 0.6% in turnover but increased by 19.2% in price.

The Vietnam Fertilizer Association (FAV) also expects the world urea market to be more vibrant from the second half of this year when major consumers such as China, India, the US, Brazil and Europe simultaneously return to bidding.

According to FAV, Vietnam's fertilizer export proportion is increasing day by day. Two years ago, we exported less than 1 billion USD. Since 2022, we have had a breakthrough when exporting 1.7 billion USD due to some countries restricting fertilizer exports.

Meanwhile, the International Fertilizer Association (IFA) forecasts that global fertilizer consumption this year will increase by 4% compared to 2023, reaching 192.5 million tons.

With a favorable fertilizer market, SSI Research forecasts DCM's revenue in 2024 to increase by 11% year-on-year to VND14,006 billion, mainly due to growth in output and average selling price. Reduced depreciation expenses and one-off income related to the acquisition of Han Viet Fertilizer will help DCM's profit recover significantly in 2024 with an estimated net profit of VND1,980 billion, up 82% year-on-year.

Ca Mau Fertilizer has also just signed a strategic cooperation agreement with Samsung C&T - a member of Samsung Group (Korea) to boost fertilizer exports. Samsung C&T is currently one of the world's leading fertilizer businesses with a commercial output of 4 - 6 million tons in the 2022 - 2023 period.

At the end of May 2024, Ca Mau Fertilizer also worked with Ameropa AG (Switzerland) - the world's leading fertilizer trading company, and a series of large fertilizer manufacturing and trading enterprises in Thailand, Cambodia, and Laos to promote business.

Ca Mau Fertilizer products are now available in nearly 20 countries around the world. In particular, the company is maintaining a high market share in the traditional market of Cambodia (over 60%), Myanmar, Bangladesh, India, Brazil, etc. At the same time, high-tech fertilizer product lines in line with the green trend such as OM CAMAU, DAP CAMAU, Ca Mau NPK lines, etc. have penetrated and met the requirements of new markets such as France, Peru, Mexico, the United States, etc.

At the 2024 Annual General Meeting of Shareholders, clarifying this year's strategy, Mr. Van Tien Thanh - General Director of Ca Mau Fertilizer said: The picture of Vietnam's economy is forecasted to be quite optimistic, with a stronger recovery than in 2023. Ca Mau Fertilizer considers this a key year to accelerate, with three main strategic spearheads including investment, sustainable development and digital transformation.

To increase profit efficiency, Ca Mau Fertilizer researches to diversify raw materials, fuels and fertilizer product groups based on available potential. Some fertilizer lines mentioned by Mr. Thanh are organic biological products, organic microorganisms; growth stimulants and foliar fertilizers; soluble fertilizers.

On July 26, 2008, Prime Minister Nguyen Tan Dung officially issued the order to start construction of the Ca Mau Fertilizer Plant. On March 9, 2011, Ca Mau Petroleum Fertilizer Company Limited, a wholly owned subsidiary of the Vietnam Oil and Gas Group, was officially established to manage and operate the Ca Mau Fertilizer Plant located in the Ca Mau Gas - Power - Fertilizer Industrial Park.

Source: https://danviet.vn/dam-ca-mau-sap-hoan-thanh-muc-tieu-xuat-khau-len-ke-hoach-tieu-thu-ure-npk-cao-ky-luc-2024092522291587.htm