Binh Son, which owns a 130,000-barrel-per-day refinery in central Vietnam, said in a statement the recent surge in domestic fuel prices was behind its profit jump. - Vietnam News/ANN
HANOI, July 26 (Reuters): Vietnam's Binh Son Refining and Petrochemical recorded net profit of 9.91 trillion dong (US$424 million) in the second quarter, up by nearly six times from a year earlier, the company said on Tuesday.
Binh Son, which owns a 130,000-barrel-per-day refinery in central Vietnam, said in a statement the recent surge in domestic fuel prices was behind its profit jump.
It also said it had been operating above capacity this year to meet domestic fuel demand amid a an output cut in Vietnam's other refinery.
Its six-month revenues equalled 95 per cent of the annual plan.
BSR accounted for 30-35 per cent of fuel supply in Vietnam, equivalent to 3.43 million tonnes.
Surging oil prices on the global market and post-Covid recovery are two driving factors for growth, BSR Director Bui Ngoc Duong said.
Duong pointed out that the rising US dollar, inflation and related costs would challenge BSR in the next six months.
Imports of light sweet crude for the refinery will likely be affected by the Russia-Ukraine conflict and Western sanctions on the country, its management added.
Nguyen Van Hoi, chairman of BSR, said the company will expand its "basket" of imported oil and focus on investment, with a complete overhaul of the refinery set to happen in mid-2023.
Dung Quat refinery started operation in January 2011. Its current output is 6.5 million tonnes annually.
BSR also planned a US$1.8 billion upgrade to raise Dung Quat’s capacity from the current 6.5 million tonnes of crude to 7.6 million tonnes.
