Phu Tai Joint Stock Company is stepping up investment in its wood pellet factory amid soaring oil prices.
- Mar 20
- 2 min read
Updated: 2 hours ago
Phu Tai Joint Stock Company (PTB) has decided to use over 161 billion VND raised from its public offering to settle short-term loans and invest in a wood pellet production plant for export.
According to Report No. 29/BC-HĐQT and Board of Directors Resolution No. 28/NQ-HĐQT dated March 9th, the company has collected over 161 billion VND in actual revenue, exceeding the initial plan by 367 million VND.
Based on the actual debt situation, PTB's management has adjusted the capital utilization plan for Phu Tai Binh Dinh Wood Co., Ltd. Instead of allocating VND 116 billion to repay three medium-term and long-term debts as planned, the company will use the entire amount to pay off a single short-term loan contract at Vietcombank Quy Nhon branch, with disbursement scheduled for 2026. This decision helps the subsidiary minimize liquidity risk and completely resolve short-term debt pressure.
The Board of Directors also maintained the plan to disburse VND 44.5 billion (along with VND 1 billion from other sources) to Phuc Tan Kieu One-Member Limited Liability Company. This legal entity is headquartered in An Khe Industrial Cluster (Gia Lai) and specializes in the production of wood chips and wood pellets. The capital is specifically allocated to supplement investment capital for the wood pellet production plant for export and forest product processing.
The global energy market is experiencing significant volatility. In early March 2026, tensions in the Middle East caused oil prices to surge, at one point exceeding $111 per barrel. The risk of supply disruptions through the Strait of Hormuz made fossil fuels even more expensive.
Wood pellets have emerged as an optimal alternative due to their standard calorific value of 16.5 MJ/kg, low moisture content, and carbon-neutral emission characteristics. This biomass fuel has a significant competitive advantage in price compared to diesel/fuel oil, thus attracting substantial demand from developed markets.
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In just 11 months of 2025, Vietnam's wood pellet exports increased by 52%, surpassing the $1.08 billion mark for the first time and becoming the fastest-growing item in Vietnam's wood industry.
On the stock market, PTB shares have experienced significant volatility over the past three months. As of the trading session on March 10th, the closing price of PTB was 50,100 VND/share, trading within a range of 49,000 VND to 57,000 VND/share since the beginning of this year.
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