Hanoi (VNA) - The PetroVietnam Ca Mau Fertiliser Co., Ltd. (PVCFC)’s total urea outputreached the milestone 7 millionth tonne on September 13 after almost ten years ofoperations.

A subsidiaryof the Vietnam Oil and Gas Group (PetroVietnam) and located in the Mekong Deltaprovince of Ca Mau, PVCFC has maintained capacity at 110 percent over recent yearsto bring high-quality fertiliser to the market and contribute to enhancing nationalfood security.

The factoryhas produced some 870,000 tonnes of urea each year, meeting more than 40 percentof demand around the country and holding a market share of approximately 60 percentin the Mekong Delta - Vietnam’s rice bowl.

Its productshave been exported to a number of foreign countries, including Cambodia.

With its products,farmers can save up to 30 percent on fertiliser costs while increasing yields by5-10 percent.

Danish catalysiscompany Haldor Topsoe named PetroVietnam Ca Mau Fertiliser among the factories withthe best annual normalised production and in the Top 10 in terms of the lowest annualspecific net energy consumption.

The PVCFC generated 34.73 billion VND (nearly 1.5million USD) in profit in the first two months of this year, equivalent to 69percent of its yearly plan, despite unfavourable business conditions.

The company’s output surged 17 percent pastthe January – February target to 157,000 tonnes of urea.

In thefirst six months of this year, the prices of gas as material for ureaproduction dropped strongly along with oil prices, enabling the factory to earn200 billion VND (around 8.65 million USD) in profit, far exceeding the initialtarget of 54 billion VND, despite being challenged by unfavourable business conditions,in particular severe saline intrusion in the Mekong Delta.

Saltwaterhas hit the Mekong Delta harder and earlier than expected this year, affecting about300,000 ha and forcing local farmers to cut their rice-growing areas and shift toaquaculture, with demand for fertiliser falling 15 to 20 percent as a result.

The globalspread of COVID-19 has also taken a heavy toll on the export of PVCFC’s urea productsto major foreign markets, particularly Cambodia.

To resolvethe problems, PVCFC has worked hard to boost sales in areas not affected by salineintrusion, and cooperated with agricultural authorities to provide farmers withtechnical support and new varieties to cushion the blow of drought and saltwaterintrusion.

It has partneredwith the Mekong Delta province of Soc Trang to demonstrate new high-quality paddyvarieties and advanced farming practices, and instructed farmers on how to use waterand fertiliser effectively and how to test salinity.

The companyhas signed an agreement with VietFarm to develop bio-fertilisers and organic fertilisers,to diversify its products and stay abreast of higher market demand and modern agriculturaltrends.

Accordingto the company’s Deputy Director General Nguyen Thi Hien, PVCFC is applyingmany technological solutions to raise the factory’s capacity by 15 percent,which means total urea output is expected to reach 913,000 tonnes in 2021. Assuch, the company will have to expand its share in the domestic market whileseeking new export markets.   

The companyraised nearly 1.58 trillion VND (74 million USD) at its initial public offeringon the Ho Chi Minh Stock Exchange (HoSE) in 2014.

It successfullysold all 129 million shares offered in the IPO at an average price of 12,251 VND,or 251 VND higher than the initial price. The shares account for 24.36 percent ofthe company’s capital.

Thecompany made its debut on HoSE on March 31, 2016, with more than 529 million sharesoffered at a reference price of 14,500 VND./.