PVN Retains Ownership Ratio, Fast-Tracks Green Hydrogen Project
PetroVietnam Ca Mau Fertilizer Joint Stock Company (Dam Ca Mau, ticker symbol DCM - HoSE) has announced the shareholder record date of November 23 to convene its 2023 Extraordinary General Meeting of Shareholders on January 10, 2024 in Ca Mau City.
The meeting will take place via a hybrid format combining direct attendance and online voting. Key agenda items include: electing Board of Directors (BOD) members; amending and supplementing BOD operating regulations; and adjusting business lines.
Concurrently, Dam Ca Mau's Board of Directors has approved the corporate restructuring plan through 2025.
Notably, regarding shareholder structure under PVN's 2021–2025 restructuring plan, the PVN Board of Members has petitioned the Commission for the Management of State Capital at Enterprises (CMSC) to recommend Prime Ministerial approval for PVN to maintain its 75.56% equity holding in Dam Ca Mau.
Accordingly, PVN's divestment roadmap at Dam Ca Mau will be determined following Prime Ministerial approval of the overarching PVN restructuring master plan.
Consequently, Dam Ca Mau continues exploring options to scale up charter capital in line with revenue growth and development requirements. Concurrently, the company will engage with strategic investors to implement state equity divestment post-2025 under the approved roadmap.
Previously in 2018, Dam Ca Mau expressed its intention to find strategic investors to reduce state ownership from 75.56% to 51%, though this remains unexecuted. Dam Ca Mau's charter capital stands at VND 5,294 billion, maintained for several years, of which PVN holds 75.56% (equivalent to VND 4,000 billion).
Regarding strategic development orientations, Dam Ca Mau will bolster agricultural chemicals and clean energy, aligning with the global energy transition and PVN's transformation into an integrated energy group. In particular, Dam Ca Mau stated that Phase 1 of its Green Hydrogen project will reach completion in 2025.
Besides continuing R&D on premium, eco-friendly fertilizers, Dam Ca Mau plans to soon commission its Food-grade CO2 project and industrial gas production projects (Argon / Nitrogen / Oxygen).
Dam Ca Mau's Q4/2023 Earnings Poised for Strong Surge
Regarding business performance, in the first 9 months of 2023, Dam Ca Mau recorded net revenue of VND 9,036 billion and net profit of VND 613 billion, decreasing 21% and 81% respectively against the elevated baseline of 9M/2022.
Despite the decline, these figures still exceed historical averages. The drop was primarily driven by lower international and domestic urea prices compared to the peak in 2022, alongside higher cost of goods sold and distribution expenses.
Notably, Dam Ca Mau's urea production volume and sales volume in Q3/2023 both surpassed peak levels in Q3/2022, demonstrating the firm stability of its core fertilizer manufacturing operations.
Financial institutions assess that Dam Ca Mau's Q4/2023 profits may surge dramatically year-on-year and quarter-on-quarter, driven by its Urea Plant reaching full depreciation and urea prices recovering 18% from July 2023 troughs. Additionally, the company may reverse certain feedstock natural gas cost provisions by year-end.
In the medium term, earnings will be fueled by the completed acquisition of Korea-Vietnam Fertilizer Co., Ltd. (KVF). With an annual capacity of 360,000 metric tons across two NPK lines, owning KVF expands Dam Ca Mau's total NPK fertilizer capacity to 660,000 tons per year, more than doubling current output.
Dam Ca Mau holds substantial competitive cost advantages over pure NPK compounding rivals due to its full captive upstream supply of molten and granular urea feedstock.
On the stock exchange as of November 28, DCM shares traded at VND 31,200 per share, gaining over 28% year-to-date.
Source: Tapchicongthuong
