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Binh Son Refining and Petrochemical Joint Stock Company (BSR): Developing a plan to increase capital to VND50,000 billion 

 Wednesday, June 5,2024

AsemconnectVietnam - The Dung Quat Oil Refinery expansion project is facing difficulties in accessing capital because of very high interest rates.

Therefore, BSR is developing a plan to increase charter capital from VND31,000 billion to VND50,000 billion from equity capital.
On the morning of May 23, 2024, Binh Son Refining and Petrochemical Joint Stock Company successfully held the 2024 General Meeting of Shareholders.
In 2024, Dung Quat Oil Refinery will undergo the 5th general maintenance (TA5), therefore, BSR targets production output of VND5,728 billion and consumption output of VND5,660 billion. Regarding business targets, the Company targets total consolidated revenue of VND95,274 billion and profit after tax of VND1,148 billion.
Regarding the Dung Quat Oil Refinery Expansion and Upgrade Project, Mr. Bui Ngoc Duong, General Director of BSR, said that accessing capital for the project is difficult because the interest rate is very high. Therefore, the enterprise is developing a plan to increase charter capital from VND31,000 billion to VND50,000 billion (expected to increase capital by paying dividends in shares and issuing additional shares to increase equity capital from equity capital) to submit to competent authorities for consideration and approval.
This is the expectation for BSR to have enough equity capital to serve the project, ensuring that equity capital accounts for 40 - 60% of the total investment of the project. The loan capital will be arranged from ECA loans, domestic and international trade, as well as other suitable and feasible capital sources.
Regarding BSR's divestment, Mr. Le Xuan Huyen, Deputy General Director of Petrovietnam, said that in the past, equitization was a trend but sometimes it was not good. BSR ensures energy security, so State control is important. This is the reason why the State will maintain the current ownership ratio, to ensure sustainable development and energy security.
Regarding the progress of the HOSE transfer, Mr. Duong said that the problem last year was the application of the revised Decree 155. Previously, the SSC did not rely on the consolidated report, but after Decree 155 was issued, the SSC considered both the consolidated report and the parent company. BSR's current problem is related to the handling of bankruptcy proceedings of its subsidiary, Central Petroleum Biofuel Joint Stock Company (BSR-BF). The SSC had a separate meeting with BSR to support the company in the transfer process. It is expected that the third quarter will have a clear picture.
In 2023, according to the report, BSR recorded production output of over 7.36 million tons. Consumption output reached 7.34 million tons; Total revenue reached VND150,073 billion and profit after tax reached VND8,755 billion and paid VND17,409 billion to the State Budget.
Of which, Dung Quat Oil Refinery has established 1,180 days of continuous operation. Thanks to that, the average capacity for the whole year of 2023 has reached the highest level ever at 111% and the average crude oil loss for the whole year is at a low level of 0.11% of volume.
N.Nga
Source: VITIC/Tinnhanhchungkhoan
 

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