Vietnam oil refinery bags $117.6 million profit from $4.4 billion revenue in 2019

With 2019 revenue of $4.4 billion, the refinery has become one of a few companies having annual turnover exceeding $4.3 billion. The company was equitized since July 1, 2018, so there are no comparable figures.

The company had targeted $4.2 billion revenue and nearly $126.8 million profit for 2019. With the business results, Binh Son Refinery beat the revenue target but completed 94% of the whole-year profit goal.

With favorable business conditions, BSR reported $64.3 million after-tax profit in the fourth quarter of 2019, a sharp improvement against $25.4 million loss in the same period of 2018.

In the fourth quarter of 2018, Brent oil price dropped rapidly to $57.4 per barrel, resulting in lower product prices. The gap between prices of crude oil and products narrowed, resulting in low business efficiency and leading to losses.

However, oil prices at the end of 2019 increased to $67  per barrel, facilitating BSR's production. The widening price gap between crude oil and main products caused profits increase. Production output of BSR in the fourth quarter also increased. The plant operated with an average capacity of 105%, sometimes 110% capacity.

In the first quarter of 2020, the company plans to ramp up operations at the Dung Quat Oil Refinery Plant to its maximum capacity to complete its production targets for the year.

In 2020 plan, the refinery plans to have a production output of more than 5.56 million tons, bringing $3.45 billion revenue and $55.6 million after-tax profit.

The firm’s equity increased from $1.35 billion at the end of 2018 to over $1.46 billion in 2019. Total assets of the oil firm stood at over $2.3 billion.

On the market, BSR shares fell from the peak of more than VND30,000 ($1.29) per share to below VND8,000 ($0.34) each.

However, the information of high profit results is helping the stock to increase strongly in the session of January 21, sometimes reaching the ceiling price of VND8,500 ($0.36) per share.