Dung Quat oil refinery gains $130 million profit in first six months

Jun 17, 2018 | 08:58 AM GMT+7

TheLEADERIn the first half of 2018, revenue of Binh Son Refining and Petrochemical (BSR) which operates Vietnam’s first Dung Quat oil refinery is estimated to reach up to $2.4 billion, fulfilling 71 per cent of its full year target.

Accordingly, after-tax profit of this company is estimated to amount to roughly $130 million, equivalent to 84.7 per cent of its 2018's plan.

According to BSR, in the first six months of 2018, it would produce 3.56 million tons and consume roughly 3.6 million tons of finished products.

General Director of BSR Tran Ngoc Nguyen said that BSR has to compete with not only imported products but also domestic ones sold by Nghi Son Refinery and Petrochemical (NSRP).

Besides, it also has to face short-term and long-term difficulties such as lower quality domestic crude oil supply and stricter emission standards.

In addition to the production and business activities as well as transformation of the company model, BSR is also active in project of upgrading and expanding Dung Quat oil refinery.

On June 21, 2018, BSR will hold its first shareholder meeting. The preparation of personnel, action plans and targets after the conversion to a joint stock company has been made and this company is almost ready for the conversion date.

In January, nearly eight per cent of BSR's shares were successfully auctioned on Ho Chi Minh City Stock Exchange (HOSE), help it raise more than $242 million. Foreign investors including VinaCapital's funds have bought most shares.

Under the approved equitization plan, BSR has a chartered capital of more than $1.4 billion of which Vietnam National Oil and Gas Group (PVN) will hold 43 per cent and strategic investors can hold 49 per cent at the maximum.

However, the sale of BSR shares is expected to take place via a public auction ahead of possible listing in April next year.