Tuesday, 19 Feb 2019

PetroVietnam increases holding in BSR to 92.12%

Updated at Saturday, 07 Jul 2018, 09:03
The Hanoitimes - Binh Son Refinery and Petrochemical (BSR) is in favor of selling stake through public auction.
State-run energy giant Vietnam National Oil and Gas Group (PVN) has increased its shareholding in its subsidiary BSR to 2.85 billion shares, or 92.12% of charter capital, according to VietnamFinance. 
Illustration photo.
Illustration photo.
Under the equitization plan, the operator of Dung Quat Oil Refinery, had been scheduled to sell a 49% stake to strategic investors through private placements three months after its initial public offering (IPO) on January 17. PVN, which represents the state, would retain 43% of BSR's charter capital or 1.33 billion shares.

However, the 49% stake was transferred back to PVN as BSR had decided to suspend the plan to sell shares to strategic investors as the deadline of three months after its IPO has expired. 

Consequently, the oil refinery operator will sell the stake through public auction as instructed by the government. 

A number of investors, including Vietnam's fuel retailer Petrolimex, India's Oil and Natural Gas Corporation, Indonesia's Pertamina, Thailand's Bangchak Corporation Public Company have inquired about the possibility of cooperating with BSR during the recent annual general meeting, said a company official.

After nine years of operation, Dung Quat Oil Refinery supplied over 50 million tons of petroleum products to the market, generating accumulated revenue of VND862.5 trillion (US$38 billion). The refinery contributed around US$7 billion to the state budget, more than double the total investment capital of over US$3 billion. 

BSR set profit target to reach its peak at VND6.37 trillion (US$281.2 million) in 2019, after which the profit will gradually decline in the next three years due to higher costs caused by investment activities. 

In the first six months this year, BSR's revenue stood at VND55.3 trillion (US$2.41 billion), or 69.7% of the year plan, according to the company's report.

During this period, the company's after-tax profit reached VND2.94 trillion (US$128.1 million), equivalent to 84.7% of the year target.
Nguyen Tung
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