DMC: Overcoming difficulties

At the end of 2016, it was the firsttime that DMC had faced up to non-profit business and manufacture results. This situation was the consequence of dramatically decreased oil price in the world and the low maintenance of oil price in a long time period, which led to decrease the amount of tasks, service price as well as product price of DMC. As a result, this situation affected directly the work and income of laborers.
Determining thatthese difficulties will continue in next years, the Leadership Board and staffs of DMC thoroughly understand thatthey have to overcome challenges, be creative and innovative, take specific plans and solutions for each field to help DMC overcome difficulties gradually. In the first six months of 2017, DMC recorded results of business operation with the revenue of 1,650 billion VND, Profit before tax of nearly 10 billion VND as well as certain achievements for each field.
 

Achievements in each field
As the field which was affected by oil price fluctuation less than other ones, in the first six months of 2017, industrial technical service was considered as “spotlight” in the business and manufacture operation of DMC with the revenue of 151 billion VND reaching 168% of six-month plan and 431% compared to the same period of 2016. The first success of this service field was to complete the role of General Contractor for Package No.5 – Supplying maintenance service for Offsite 2 in the third Overall Maintenance of Dung Quat Refinery. The second success was to implement some service contracts with the high value in Nghi Son Refinery Project such as supplying, installing scaffoldings for construction procedure; leasing air compressors and dryers for trial process, cleaning, and so on. Besides, DMC also supplied cleaning service for Vinh Tan 4 Thermal Power Plant; completed 03 contracts of supplying consulting service about environmenttreatmentof Song Hau 1 Thermal Plant Project.
With the motto of minimizing the risks and preserving capital in business, right atthe first days of 2017, DMC has focused on promoting the business of petrochemical products such as PP, Sulfur. Business result of the first six months reached a satisfactory level with the revenue of 1003.8 billion VND reaching 165% of six-month plan and 139% compared to the same period of 2016. The profit reached 16.5 billion VND reaching 131% of six-month plan and 76% compared to the same period of 2016. Simultaneously, DMC has remained its market share of chemical business, especially supplied petrochemical refining substances for JGCS in Nghi Son Project, which has opened its opportunity of providing catalysts professionally for refinery plants in Vietnam.
Although drilling fluids service has had a low amount of tasks, it has still contributed about 387 billion VND of revenue reaching 105% of six-month plan and 120% compared to the same period of 2016; profit before tax reached 24.2 billion VND reaching 108% of six-month plan and 240% compared to the same period of 2016.
For the field of studying applications and supporting for exploitation, DMC has focused on developing the niche market in order to meet specialized demands of customers in Petroleum industry such as contracts (following orders) of Vietsovpetro (VSP), Cuu Long JOC, Phu My Fertilizer Plant, Eastern PVOil, and so on. Recently, DMC has implemented 02 contracts of technical service for the first stage with VSP and JVPC; signed RBI service contract with Nghi Son Refinery Plant.
 

 

Specific solutions for the next stage
In the last six months of 2017, DMC will focus on implementing a range of synchronous solutions from management, finance to business and manufacture solutions such as expanding markets, developing new customers in order to be sure aboutthe completion of targets. DMC will implement effectively restructuring plan; sell and transfer properties to ease the financial pressure; expropriate capital to restructure the investment in new areas; concentrate on vocational and professional training selectively and appropriately for each position; focus on training qualified engineers and technical staffs for new technical services such as cleaning environment as well as industrial equipment.
For technical service field, DMC will maximize strengths to expand the scope of supplying industrial technical services for customers in petroleum industry and other industries, especially approach Long Son Project and some petroleum processing projects in the South to supply services for these projects right in the construction period. In addition, DMC will exploit actively the market of O & M field about wastewater treatment for breweries in order to increase the amount of work and revenue for this service field.
For business field, DMC will promote the business of products which are less affected by oil price fluctuation; develop distribution system; trade petrochemical products; focus on chemical business sections for power, fertilizer fields as well as refinery plants; expand the market of supplying chemicals for all industries which are not related to petroleum.
Especially, DMC has studied investmentfor some manufacturing projects such as medical plastic, self-destruct nylon and some other plastic products; developed and completed new products/ services (OWC Cement, Protrol fluid system, additives for G Cement, etc). Besides, DMC has also studied projects which can be started to implementquickly such as Sulfur format projectto create stable and long-term jobs soon for laborers as well as contribute to the balance of three fields of manufacturing, business and supplying technical service.
With a range of aforementioned solutions and the direction of the Leadership Board as well as the determination of all staffs, DMC is confidentto overcome difficulties and complete targets.