Petrolimex to acquire BRS's stakes and turn into its strategic partner
By Nga Vu
August 14, 2017 | 08:16 AM GMT+7
Vietnam National Petroleum Group (Petrolimex) and Binh Son Refining and Petrochemical Co., Ltd (BRS), operator of Dung Quat refinery, entered a joint cooperation agreement on pushing up the consumption of petroleum products of Dung Quat refinery.
Signing ceremony. Photo: Vneconomy
According to the agreement, Petrolimex will give top priority to the sales of liquefied petroleum gas, petroleum and petrochemical products of Dung Quat refinery to meet the demands of production and business.
In the coming time, Petrolimex will proceed to acquire BRS’s stake after BRS conducts the equitization and completes its IPO. However, the specific stakes to be sold have been yet disclosed.
Besides, Petrolimex and BRS will cooperate to export products of Dung Quat refinery to Laos, Cambodia... as well as agree on rent and lease of commercial petroleum warehouses to transport goods to meet market demand.
After 7 years of operation, by the end of the first quarter of 2017, BRS has produced and sold more than 47 million tons of various kinds of its products, meeting 40 per cent of domestic petroleum demand.
BRS earned the revenue of US$36 billion with the profit up to VND15,000 billion (equivalent to US$661 million) counted as of Quarter I/2017 and contributed over US$7 billion to the state budget.
According to Nguyen Hoang Giang, Chairman of BRS, BRS will sell 4 percent of the company’s shares to the public in an IPO scheduled in November with an estimated amount of VND1.9 trillion (roughly US$84 million).
Petrolimex is now the leading distributor of petroleum products with the largest market share in Vietnam. According to the Petrolimex’s statistics, Petrolimex accounts for the average 42 to 45 per cent of the yearly sales of petroleum produced from Dung Quat refinery.
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