DPM - DPM focuses on long-term development strategy

- DPM’s AGM took place in Ba Ria-Vung Tau Province on June 23. The meeting discussed the urea selling price and volume outlook for 2022, gas transportation tariff recalculation for 2014-2018, the company’s long-term development strategy and its input gas supply.

- While PetroVietnam’s (PVN) representative stated that DPM’s H1 2022 performance was strong as it nearly met the company’s full-year guidance, he is concerned about DPM’s outlook in H2 2022 due to declining urea prices.

- DPM targets 2022 revenue of VND17.2tn (USD750mn; +34.8% YoY) and NPAT of VND3.5tn (USD151mn; +9.5% YoY). These 2022 targets are based on urea price updates as of Q1 2022 and are significantly higher than the 2022 guidance announced in December 2021. Nevertheless, we believe this guidance is conservative.