- DPM announced weak Q3 2023 results with revenue of VND3.2tn (USD131.8mn; -17% YoY) and NPAT-MI of VND64bn (USD2.6mn; -94% YoY). The significant decline in NPAT-MI was due to the estimated average selling price (ASP) of urea declining 35% YoY and estimated input gas prices increasing 33% YoY and financial income decreasing 71% YoY. These factors outweighed estimated urea sales volume rising 5% YoY and revenue from imported goods rising 47% YoY.

- On a QoQ basis, Q3 NPAT-MI fell 37% mainly due to a 25% QoQ lower estimated urea sales volume despite a 3% QoQ improvement in urea ASP. Q3 blended gross margin was encouraging at 13% vs 10% in Q2 2023, which we attribute to a higher gross margin of imported goods and VND5bn gross profit in the NPK segment vs a loss of VND134bn in Q2. In Q2, DPM suffered from a loss in the NPK segment partly due to high inventory costs and tough competition against imported products (stemming from lower import tariffs in many free trade agreements).

- 9M 2023 results include revenue of VND10.2tn (USD417.5mn; -31% YoY) and NPAT-MI of VND425bn (USD17.4mn; -90% YoY). 

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