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BSR's 2017 profit up 93%

Released at: 22:25, 01/02/2018

BSR's 2017 profit up 93%

Photo from bsr.com.vn

Net profit of $381.5 million a whopping 92.8% higher than in 2016.

by Quang Huy

The Binh Son Refining and Petrochemical Co. (BSR), the operator of Vietnam’s first oil refinery, Dung Quat in central Quang Ngai province, has reported a net profit of VND8.66 trillion ($381.5 million) in 2017, an increase of an impressive 92.8 per cent against 2016.

It produced 6.1 million tons of petroleum products during the year and posted revenue of VND82.03 trillion ($3.6 billion), up 11.4 per cent from a year earlier, according to a filing on its website after PetroVietnam’s newly-appointed Chairman Mr. Tran Sy Thanh visited the refinery.

Other financial indicators also improved considerably. Return-on-equity (ROE) reached 25.57 per cent compared to 14.06 per cent in 2016, while return-on-assets (ROA) rose to 14.08 per cent from 7.49 per cent.

The government raised VND5.6 trillion ($245.2 million) from selling a 7.79 per cent stake in BSR at an initial public offering (IPO) on January 17.

Winning investors totaled 623, of which 62 were organizations and 561 were individuals. Foreign investors secured more than 147 million shares, or 4.77 per cent of the company.

Registrations were made for nearly 652 million shares - 2.7 times higher than the offering - of which domestic investors sought 248 million and foreign investors more than 338 million.

Some 4,079 investors registered to purchase shares during the three weeks registrations were open, 3,957 of which were local individual investors, seven foreign individuals, 48 local organizations, and 67 foreign organizations.

A further 49 per cent stake will be sold to strategic investors, including both domestic and foreign investors, and the government will retain a 43 per cent stake in the operator of the $3-billion refinery. 

BSR is working on a plan to expand its processing capacity to 8.5 million tons of crude oil per year from the current 6.5 million tons. It now meets some 30 per cent of domestic demand.

Vietnam needs more refineries, as Dung Quat is capable of meeting just 30 per cent of domestic demand. The Nghi Son Oil Refinery in northern Thanh Hoa province, which is due to begin commercial operations this year, will bring total supply to 80 per cent of demand.

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