(VEN) – According to Lam Thao Fertilizers & Chemicals JSC (LAFCHEMCO)’s financial report in the first quarter of 2013, the company’s post-tax profits reached VND19.54 billion, a year on year increase of 15.14 percent. This was seen as a positive growth which could create momentum for production and business activities for the whole year.
The first quarter of every year is the peak period for quick fertilizer consumption. Therefore, during the early months of 2013, LAFCHEMCO focused on boosting consumption of products and reducing sales costs, helping to save about VND5.5 billion.
In addition, as interest rates have gradually declined, the company managed to restructure its loans, resulting in lower financial costs, with a fall to 67.35 percent compared with same period last year helping to gain a relatively high profit growth during the period.
LAFCHEMCO’s board of directors at the 34th session in April 2013 agreed to ditch a plan to construct a 400,000 tonne-per-year sulfuric acid plant capable of generating 12 MW of electricity and a 100,000 tonne-per-year ammonium sulfate plant. Instead the firm will now only focus on a 300,00 tonne plant and associated electricity generation, and dispense with ammonium sulfate production.
The board of directors also approved a plan to carry out a project to improve three available acid production lines to meet new environmental standards and another plan to build a VND20 billion multipurpose building.
Earlier, LAFCHEMCO approved a business plan for 2013 which targeted profits of VND435 billion, consumption revenue of VND4.852 trillion, basic construction value of VND184.750 billion, state budget payment of VND162.907 billion and provision to increase wages by over five percent compared with 2012. It is forecast that in 2013, LAFCHEMCO will produce 280,000 tonnes of acid; 815,000 tonnes of super phosphate; 100,000 tonnes of Fused Calcium Magnesium Phosphate and 730,000 tonnes of NPK fertilizer, with a minimum dividend rate of about 20 percent.
In was reported that in 2012, LAFCHEMCO churned out 808,500 tonnes of super phosphate:; : 51,154tonnes of Fused Calcium Magnesium Phosphate; 729,068 tonnes of NPK: and : 277,644 tonnes of sulfuric acid with a total revenue of VND4.494 trillion, an increase of 10.82 percent compared with 2011. It also produced some of other kinds of chemicals enough to meet the market demand such as alum, sodium sulfite and NaF.
LAFCHEMCO paid average wages of VND8.88 million per person per month, up 16.88 percent compared with the previous year and a dividend rate of 50 percent (30 percent paid in cash and 20 percent in additional shares)./.
By Ngan Vu