AsemconnectVietnam - PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo, stock code DPM) will increase its charter capital by about 73% to VND6,800 billion by issuing bonus shares from the development investment fund.

On January 8, 2025, the Board of Members of the Vietnam Oil and Gas Group (PVN) issued Resolution No. 598/NQ-DKVN approving the plan to increase PVFCCo's charter capital from VND3,914 billion to VND6,800 billion.
Previously, on January 23, 2025, the Board of Members of PVN approved the plan to increase PVFFCo's charter capital by VND2,886 billion from the development investment fund. The additional capital is equivalent to more than 73% of PVFCCo's current charter capital.
The decision to increase capital meets the capital needs for production and business activities, especially in the strategic development period until 2025 of the Corporation.
According to the opinion of the State Capital Management Committee at Enterprises, the Board of Members of PVN directs the representative of PVN's capital at PVFCCo to carry out the necessary procedures to increase charter capital in accordance with the approved roadmap. The process of issuing shares to increase capital will also be closely inspected and monitored to ensure effective use of capital, for the right purpose, and in line with PVFCCo's development orientation.
Notably, the State Capital Management Committee stated that it will continue to review and develop a plan to handle the difference between equity and charter capital in accordance with current regulations and the opinions of the State Capital Management Committee in the document approving PVN's annual financial statements and periodic financial supervision reports (note the remaining Development Investment Fund, capital surplus, undistributed profit after tax), and prioritize cash dividends on accumulated undistributed profit after tax to ensure improved investment capital efficiency and PVN's benefits at PVFCCo.
The increase in charter capital will help PVFCCo consolidate its solid financial resources to expand its scale of operations, improve production capacity and invest in sustainable development. This is an important step in the Corporation's long-term strategy, aiming to increase value for shareholders, enhance PVFCCo's position in the fertilizer and petrochemical sector in Vietnam and the region.
According to the financial report for the fourth quarter of 2024, in 2024, PVFCCo achieved net revenue of VND12,062 billion, an increase of 4% compared to the previous year; profit after tax reached VND574 billion, a slight increase of 1% compared to 2023. Profit growth was due to increased sales volume along with improved profit margin, increasing from 12% to 13%.
At the end of 2024, PVFCCo's equity was more than VND11,052 billion, nearly 3 times higher than the charter capital of VND3,914 billion. Of which, the development investment fund was more than VND4,546 billion and undistributed profit after tax was more than VND2,572 billion.
For the stock market, the increase in charter capital from PVFCCo's development investment fund will in the short term "dilute" DPM shares, reducing the market price corresponding to the capital increase rate, which is a condition for investors, especially individual investors, to easily participate in trading DPM shares. From there, the liquidity of DPM shares will also increase each session.
DPM shares on February 13, 2025 were over VND 35,000/share.
According to the 2025 plan, PVFCCo expects revenue of VND12,876 billion and after-tax profit of VND 320 billion. Of which, the parent company's revenue is VND11,817 billion, expected profit after tax is VND294 billion, dividend payout ratio on charter capital is 15% (provisionally calculated based on assumed gas price for Phu My Fertilizer production, gas price/gas transportation fee for Phu My Fertilizer production in 2025 will be confirmed after approval).
N.Nga
Source: VITIC/Tinnhanhchungkhoan